Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


World League Table Of 'Super-Growth' Companies

14 March 2006

World League Table Of 'Super-Growth' Companies:

- New Zealand Slips Back
- Us Keeps Top Slot
- India, Hong Kong Catching Up Fast

New Zealand has slipped back in the world league when it comes to the proportion of "super growth" companies among its medium-sized businesses, but it remains in the middle of the pack.

For the second consecutive year the US tops the Grant Thornton Super Growth Index, for the country with the highest proportion of "super growth" companies (39 per cent). Despite scoring the highest ranking, however, the proportion of super growth companies in the US actually fell by nine percentage points.

The booming economies of India and Hong Kong surged ahead to take joint second place, each on 34 per cent. With more than a third of companies achieving super growth status, both countries were within reach of challenging the US for the top slot on the index.

Other strong performances included that of Sweden (31 per cent), which climbed back up the index to fourth position after being 10th equal, alongside New Zealand, in 2005.

In contrast, New Zealand, which edged down from 13 per cent in 2005 to 12 per cent in 2006, now sits just below the halfway mark in 15th place among the 28 countries measured.

Sweden's resurgence was a reflection of a recovery in domestic spending and increased business investment.

The Super Growth Index 2006, now in its third year, is a unique research project which forms part of the Grant Thornton International Business Owners Survey (IBOS) which surveys more than 7,000 business owners worldwide in 30 countries.

A 'super growth' company is one which has grown considerably more than the average measured against key indicators including turnover and employment. This year the survey established that super growth companies are 23 per cent more likely to export than ordinary companies. Also, super growth companies were far less constrained by the ability to finance expansion of their business. For example, cost of finance was an issue for 50 per cent more ordinary companies than super growth companies; as was shortage of working capital (47 per cent); and shortage of long term finance (58 per cent).

Said Peter Sherwin, Grant Thornton New Zealand chairman: "We are not talking about a lot of difference in the New Zealand position, but it has to be disappointing that the percentage of super growth companies did not improve in the latest index.

"New Zealand is hardly among the most vibrant nations when it comes to showing the capability that super growth businesses need to have. Although the economy is slower now, it has not been bad over the past four years and the percentage of New Zealand companies termed super growth should probably now be somewhere between 20 per cent and 30 per cent; instead it is about half that.

"I said last year that the coming 12 months would provide a litmus test, particularly with lower business confidence, as super growth companies generally are optimistic about turnover, profitability and employment. Unfortunately business confidence seems to have been a factor.

"If we are not careful, this perception of gloom will drag our businesses further down and bring down with it the number of super growth companies. New Zealand can't afford to have that sort of scenario."

Super growth companies are very positive about prospects for their business. A balance of thirty six* per cent predict increasing the selling price of their goods and services compared to twenty nine per cent of companies in general. Super growth companies are also a third more positive about increasing the level of exports this year (32 per cent compared to 20 per cent) and are looking to make greater investments in their businesses (37 per cent compared to 28 per cent investing in new buildings; 51 per cent compared to 43 per cent investing in new plant and machinery).

Mainland China was included in the Index for the first time this year ? and came in 14th position, with 14 per cent of its companies classified as super growth. It will be hard for Mainland China to achieve greater super growth status until more companies experience rapid expansion both in terms of turnover and employment. Mainland China joined Germany (15 per cent) and Japan (15 per cent) in mid-table.

The sharpest fall in the rankings was seen in Greece, down from 9th to 21st position as the proportion of super growth companies fell from 15 to 8 per cent, partly in response to the end of the Olympic Games spending windfall.

Italy, Russia and Turkey jointly shared the bottom position in the Super Growth Index. Italy's rank appears to reflect the sustained malaise affecting the economy with weak consumer demand, falling investment and shrinking industrial output. Italy's ranking has fallen in each of the past three years of the Index.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news