India has surprisingly lost its position as the world’s second largest home to “super growth” firms to a relatively unknown Armenia, according on new research. With domestic businesses announcing fresh M&A; transactions every other day, demonstrating a huge hunger for expansion backed by an expanding economy, India no longer holds the title of the world’s second biggest location.
While the US has retained its No. 1 position on Grant Thornton International’s Super Growth Index for a third year in a row, India plummeted to 14th place, falling from 34% to 15%.
According to a report released on Sunday, India has been surpassed by a newcomer Armenia in terms of super growth firms, with 38 percent of them originating there as opposed to 44% in the United States.
For the third year in a row, the United States holds down first place on the Grant Thornton International Super Growth Index. US companies who achieved “super growth” accounted for 44 percent of all firms (a 5% increase over the previous year). The country with the greatest number of “super growth” firms is measured by this index.
This year, Armenia has leapfrogged over India to take second place (38%). Indian companies dropped drastically in the ranking as the proportion of super-growth firms fell from 34% to 15%. The Irish Republic has kept its top five spot (29%; No.3) and is joined by the United Kingdom (26%; No.4).
The Grant Thornton International Business Report (IBR) began in 2008 and includes a unique research project known as the Super Growth Index 2007. The study polled 7,200 privately held firms in 32 nations, or 81% of global GDP.
According to this study, one-third of super growth firms believe globalization offers them more opportunity than it does for all businesses (versus 54% in the survey), and one in three (33%) super growth companies consider a lack of skilled workers to be a greater constraint than other corporations.
On a variety of measures, including revenue, capital expenditure, and cost per employee, companies in the top quartile are typically more optimistic than corporations in general. turnover – 87% compared with 70%; employment – 67% compared with 45%; and profitability – 66% compared to 52%.
‘Super growth’ firms are characterized as those that have expanded considerably more than the typical. Experian Business Strategies, a consultancy in economics, created a weighted index based on four indicators to identify ‘super growth’ businesses. The percentage change in turnover (adjusted for inflation) was one of the four criteria considered; absolute growth in turnover.