![]() See Rob Bland, Anna Granskog, and Tomas Nauclér, “ Accelerating toward net zero: The green business building opportunity,” June 14, 2022. Previous research examined the opportunity specifically for new green businesses and found that growing demand for net-zero offerings could generate more than $12 trillion in annual sales by 2030. 2 This assumes a global annual revenue growth rate of approximately 3 percent. we see that the revenue at stake from new businesses will be as much as $30 trillion in 2027, up from $5 trillion in revenues generated today. If we take their projection that 27 percent of revenues in five years’ time will be generated from new businesses built between now and then and apply that across global businesses with annual revenues of $1 billion or more, 1 According to S&P Global, the revenue sum from available 12,123 private and public companies with annual revenues over $1 billion is $95 trillion. Surveyed business leaders working for companies with at least $1 billion in annual revenues say that, on average, their organizations are seeing 5 percent of revenues in the past year generated by businesses built in the past five years. The survey findings suggest that new-business-building activity is poised to have an increasing role on the global economy. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP. 3 The online survey was in the field from July 19 to September 1, 2022, and garnered responses from 1,007 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. and the latest McKinsey Global Survey on new-business building finds that markets, too, are recognizing the value of new businesses. The following year’s survey results captured their thinking on the strategic value of those efforts as well as potential factors for success, 2 “ 2021 global report: The state of new-business building,” December 6, 2021. ![]() ![]() 1 Shaun Collins, Ralf Dreischmeier, Ari Libarikian, and Upasana Unni, “ Why business building is the new priority for growth,” December 10, 2020. In the past three years that we’ve been surveying executives about new-business building, we’ve witnessed a marked shift in their perspectives on the topic: the 2020 findings reflected how much business leaders were starting to prioritize new business building. Responses suggest that new businesses built by large incumbent organizations currently generate $5 trillion in revenues and could grow to $30 trillion in five years (see sidebar, “New-business building and the economy”).Organizations will need to more than double their rate of business building to achieve leaders’ expectations that 29 percent of revenue in 2027 will come from new businesses.Sixty-three percent of surveyed business leaders expect their investment in new-business building to increase from 5 percent of revenues today.Business leaders report that every dollar of revenue from new businesses generates almost twice the enterprise value versus every dollar of core business revenues.Surveyed business leaders report that their companies are building 50 percent more new businesses per year than they did two to five years ago.Eight in ten surveyed CEOs report new-business building as a top five priority despite recent heightened economic volatility.
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