global dynamism index 2012: business growth fundamentals ... 2013...global dynamism index (gdi) -...

© 2012 Grant Thornton International. All rights reserved.

Global Dynamism Index :

business growth fundamentals Grant Thornton Global Dynamism Index


Canadian businesses aren’t standing still

Previous CFERF study – fall 2012

Of executives surveyed

• 56% identify growth as an extremely high priority

• 53% are executing a growth strategy

• 44% are creating a strategic growth plan


Why companies pursue growth

0% 20% 40% 60% 80% 100%

Other

To facilitate innovation in products and services

To provide opportunities for our people

To respond to customers' increasingexpectations

To gain market share

To improve financial and operationalperformance


Business insights model

Marke

t

forces

Strategy

&

structur

e

People

&

culture

Process

Financial

managemen

t

Custome

r

Regulator

y & legal


50 economies

studied

Global Dynamism Index (GDI)

- the best environment for dynamic business growth

406 interviews

conducted

22 indicators

researched

to produce

rankings on

science &

technology

financing

environment

business

operating

environment

labour &

human capital economics &

growth

overall

dynamism


Overall dynamism - by region Normalised score (Max=100, Min=0)


Overall dynamism - top 20 economies Normalised score (Max=100, Min=0)


Business operating environment - top 10 Normalised score (Max=100, Min=0)

"A poor operating environment, that fails to

offer key safeguards and security, represents a

higher risk for business investment."

Weightings

Foreign trade and exchange regimes and controls 41%

Policy towards private enterprise and competition 23%

Legal and regulatory risk 23%

Political stability 13%

• Mature economies well ahead

- Nordic (91.4), N.America (90.4) top

- Middle East & Africa (60.3) bottom


Science & technology - regional results Normalised score (Max=100, Min=0)

• Israel (73.0) top economy

• Nordic (57.3) top region

• Latin America (23.5) bottom

"Science and technology is a measure

of the ability of an economy’s infrastructure

to support the growth of dynamic

businesses."

Weightings

R&D as % of GDP 52%

Total IT spending growth 28%

Broadband subscriber lines per 100 inhabitants 10%

Growth in broadband subscriber lines 10%


Economics & growth - top 10 Normalised score (Max=100, Min=0)

Emerging economies dominate this

aspect of dynamism

• Growth-8 (75.4) economies top

• Western Europe (53.0) bottom

"For dynamic businesses, faster growing

markets offer the consumer, business and

public sector demand to match their ambition."

Weightings

Real GDP growth 67%

Private consumption per head 28%

Change in $ value of stockmarket index 5%


Financing environment - regional results Normalised score (Max=100, Min=0)

Mature economies rank higher in this

area of dynamism

• North America (65.7) top

• Growth-8 (47.4) bottom

"Dynamic organisations need to invest to

stay ahead of the curve, and therefore

require the financing environment in which

they operate to be as agile and fast-moving

as they are."

Weightings

Quality financial regulatory system 30%

Access to medium-term capital 26%

Private sector credit as % of GDP 18%

Corporate tax burden 14%

Inward direct investment growth 7%

Growth in inward M&A deals 2%

Value of inward M&A deals 2%


Labour & human capital - top 10 Normalised score (Max=100, Min=0)

Nordic top (60.2) of regional rankings

• followed by Latin America (59.8)

and Asia Pacific (59.5)

• G7 (54.6) below Growth-8 (58.5)

"The best workers not only increase

productivity, but can also save a

business time and money."

Weightings

Labour productivity growth 47%

School life expectancy 28%

Unemployment 20%

% of population under 30 6%


More information

Other materials available:

• database

• full report

• press release

• charts & graphics

• data visualisation tool

Access and contact:

• Materials: www.gti.org/thinking

• Data visualisation tool: www.globaldynamismindex.com

• More information: Dominic King ([email protected])

http://www.gti.org/thinking

http://www.globaldynaimismindex.com/

mailto:[email protected]

global dynamism index 2012: business growth fundamentals ... 2013...global dynamism index (gdi) -...

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