2023-12-12 04:58:21
In a recent study by McKinsey & Company, it is revealed that entrepreneurs who have launched 15 or more businesses in the last five years have experienced an impressive 28% increase in new revenue. This figure highlights the crucial role that innovation and new business creation play in the sustained growth of companies.
Perspective Writing
Organic Growth: Priority Strategy for Traditional Companies
Six out of ten traditional companies are opting for organic growth, creating new businesses within their organizations. Capital constraints and investor confidence give them a financial advantage over startups, driving this trend. CFOs agree that the creation of new products, services or businesses is the main strategic movement in the next 12 months.
Diversification Success: Entrepreneurs Launch 2.8 Successful Businesses for Every Underperforming Business
High-performing disruptive entrepreneurs are leading the charge, launching three or more new businesses per year, with an impressive success rate. This group demonstrates efficiency and adopts on average at least four formal mechanisms to support the launch of new businesses. Successful diversification is correlated with a 28% increase in new revenue.
Investors Prefer Internal Business in Established Companies
Two-thirds of public equity investors consider it less risky to invest in new businesses within traditional companies. They expect a third of these new businesses to become viable large-scale projects, supporting the belief that internal investments are less risky than independent startups.
Future Trends: “Everything as a Service Business” and AI in the Foreground
The creation of “everything as a service business” and the integration of artificial intelligence (AI) are prominent trends. These business models are almost on par with companies based on data, analytics and artificial intelligence. Generative AI is projected as a key tool that will drive an increase in corporate projects.
Diversity and Business Success: Female and Minority Empowerment
Companies led by women represent 21% of the total, up from 14% in 2021. Data indicates that new businesses created by diverse leaders are 25% more likely to succeed. Diversity, equity and inclusion (DE&I) prove to be a real driver of business value.
In summary, the continuous creation of new businesses is revealed as a key driver of business success in a constantly evolving business landscape.
#Growth #Strategy #CEOs #Commitment #Creation #Businesses