Oliver Cann, Public Engagement, Tel.: +41 79 799 3405; oliver.cann@weforum.org
· Adopting hypergrowth business practices can unlock huge value for the global economy
· Hypergrowth can be cultivated in many business stages; the study finds that 63% of rapid and hypergrowth businesses experience their most dramatic growth six years or more after inception
· The Fourth Industrial Revolution is increasing the number of opportunities for extremely rapid growth across industries
· For more on Mastering Hypergrowth, including what differentiates these companies from others and best practices from a number of industry sectors, click here
Geneva, Switzerland, 28 April 2016 – Businesses that are successful in mastering “hypergrowth” – defined as having a compound annual growth rate of over 40% – are increasingly likely to come from a diverse cross-section of industrial sectors as the world enters the Fourth Industrial Revolution, according to a study by the World Economic Forum, Mastering Hypergrowth, published today.
The study concludes that the convergence and interaction of breakthrough technologies and disruptive business models that represent the Fourth Industrial Revolution are increasing the possibility for companies to achieve extraordinary rates of growth. Indeed, the study finds that 63% of rapid and hypergrowth businesses experience their most dramatic growth six years or more after inception, with 36% only hitting their stride after their 10th anniversary.
Mastering Hypergrowth is the product of 10 months of surveys, interviews, workshops and meetings with leaders of businesses experiencing a wide range of growth rates. It aims to demonstrate that hypergrowth can apply to businesses ranging from start-ups to those with over 70 years of experience with the right access to new markets, business models, company cultures and agile leadership, and to technology for scaling and expansion goals.
Highlights include:
· Two hundred companies participated in the study, representing a cross-section of conventional, rapid growth and hypergrowth businesses. The sample represents companies with annual revenues that range from $100 million to more than $1 billion and includes a wide variety of industries, regions and organization sizes
· A Hypergrowth Playbook chronicles challenges faced by leadership teams undergoing hypergrowth scenarios and the solutions they adopted
“Hypergrowth demonstrates a growing systemic opportunity for the global economy as it enters the Fourth Industrial Revolution. Breaking down the preconditions for such growth and what it means for the future of enterprise is critical for a world looking to find solutions to spur growth and productivity,” said Olivier Schwab, Head of Business Engagement at the World Economic Forum.
“We are living in a world where disruption is a constant force that threatens the very existence of incumbent players and long-held business models. Hypergrowth companies, however, are seizing this as an opportunity and leading the way in establishing new practices and ways of doing business in the market. By learning from these experiences, we can build new businesses that have the potential to realize the disruptive, innovative power of the Fourth Industrial Revolution to create new sources of wealth and better outcomes for society,” said Uschi Schreiber, Global Vice-Chair for Markets and Chair of the Global Accounts Committee at EY, which collaborated in producing the study.
About the project
Challenges facing hypergrowth firms have a huge impact in today’s global economy. From talent shortages to regulatory impediments, growth challenges are a consistent management priority. Hypergrowth firms have often found unique solutions to these challenges from which we may draw corresponding insights. Through discussions with its Members and Partners, the World Economic Forum, in collaboration with EY, has identified best practice strategies from hypergrowth firms, articulated by their management teams.
By examining risks and trends affecting rapidly growing enterprises, analysing data from surveys, conducting interviews with CEOs, their senior management teams and other experts, this project highlights decisions that characterize how successful firms respond to high-growth obstacles. As an essential part of the Forum’s mission, the role of stakeholder management in these scenarios is closely considered in terms of its impact and application to high-growth challenges.
Notes to Editors
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