Global Dynamism Index 2012: business growth fundamentals ... 2013...Global Dynamism Index (GDI) - the best environment for dynamic business growth 406 interviews conducted 22 indicators

© 2012 Grant Thornton International. All rights reserved.

Global Dynamism Index :

business growth fundamentals Grant Thornton Global Dynamism Index

© 2012 Grant Thornton International. All rights reserved.

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

© 2012 Grant Thornton International. All rights reserved.

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

© 2012 Grant Thornton International. All rights reserved.

Business insights model

Marke

t

forces

Strategy

&

structur

e

People

&

culture

Process

Financial

managemen

t

Custome

r

Regulator

y & legal

© 2012 Grant Thornton International. All rights reserved.

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

© 2012 Grant Thornton International. All rights reserved.

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

© 2012 Grant Thornton International. All rights reserved.

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

© 2012 Grant Thornton International. All rights reserved.

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

© 2012 Grant Thornton International. All rights reserved.

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%

© 2012 Grant Thornton International. All rights reserved.

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%

© 2012 Grant Thornton International. All rights reserved.

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%

© 2012 Grant Thornton International. All rights reserved.

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%

© 2012 Grant Thornton International. All rights reserved.

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])