Europe’s 500

Europe’s plight

The number one issue facing Europe today is unemployment– In 1970, unemployment in the EU was 2.3% - half

the level of unemployment in the USA

– However, since 1970, 30 million jobs have been created in the USA, compared with 5 million in the EU

Today unemployment in the EU is more than double the level in the USA

The key to employment The key to employment growth in the USAgrowth in the USA

Fast growing medium sized companies Fast growing medium sized companies have have created 80% of the new jobs in the USAcreated 80% of the new jobs in the USA

– 1 in 5 of all medium sized companies in the USA is 1 in 5 of all medium sized companies in the USA is fast growing, compared with 1 in 25 in Europe fast growing, compared with 1 in 25 in Europe

– There are not enough fast growing companies in There are not enough fast growing companies in EuropeEurope

Europe must increase the number of fast Europe must increase the number of fast growing companiesgrowing companies

What is Growth Plus ?What is Growth Plus ?

Growth Plus is the association which brings Growth Plus is the association which brings together Europe’s most dynamic, job creating together Europe’s most dynamic, job creating entrepreneurs. Our principle objectives are:entrepreneurs. Our principle objectives are:

– To promote entrepreneurship in EuropeTo promote entrepreneurship in Europe

– To work with the European Institutions and To work with the European Institutions and

Nationals Governments to improve the environment Nationals Governments to improve the environment

for high growth companiesfor high growth companies

– Provide education and networking opportunities for Provide education and networking opportunities for

entrepreneurs leading fast growing companiesentrepreneurs leading fast growing companies

Mission Mission

Our mission is to promote entrepreneurship Our mission is to promote entrepreneurship throughout Europe and to advise policy throughout Europe and to advise policy makers so as to improve the environment for makers so as to improve the environment for growth companies.growth companies.

Vision Vision

We would like to live in a world where growth We would like to live in a world where growth companies are recognised as the job and companies are recognised as the job and prosperity creatorsprosperity creators..

We want to live in a society where children We want to live in a society where children grow up thinking and behaving in an grow up thinking and behaving in an entrepreneurial manner by taking entrepreneurial manner by taking responsibility for his own future.responsibility for his own future.

Growth Plus ProductsGrowth Plus Products ChaptersChapters

– Austria, France, Germany, Italy, SpainAustria, France, Germany, Italy, Spain– Forming: Belgium, Netherlands, Ireland, Portugal, Forming: Belgium, Netherlands, Ireland, Portugal,

Sweden, U.K.Sweden, U.K.

Europe’s 500Europe’s 500– published annuallypublished annually– lists Europe’s fastest growing companieslists Europe’s fastest growing companies

Research ReportsResearch Reports– published annuallypublished annually– studies Europe’s 500 growth companies and strategiesstudies Europe’s 500 growth companies and strategies

Annual ConferenceAnnual Conference

Funding SourcesFunding Sources Membership duesMembership dues Strategic & Other PartnersStrategic & Other Partners

– 3i3i– Arthur AndersenArthur Andersen– Boston Consulting GroupBoston Consulting Group– BMWBMW– State of BavariaState of Bavaria– Worldcom Group of P.R. companiesWorldcom Group of P.R. companies

Project income (conference registrations, etc.)Project income (conference registrations, etc.)

Objective of the Europe’s 500 Objective of the Europe’s 500 Identify Europe’s fastest growing Identify Europe’s fastest growing

entrepreneurial companiesentrepreneurial companies

Demonstrate the impact of growth companies Demonstrate the impact of growth companies

on job and wealth creationon job and wealth creation

Identify role-modelsIdentify role-models

Celebrate entrepreneurial success in EuropeCelebrate entrepreneurial success in Europe

E-500 : Finding The Winners1998 Europe’s 500 List

Final verification on top 750Review by Country Experts

Elimination/Selection of Companies

Direct verification of 2,000 NominationsMarketing with Letter, Fax & Telephones

1997 Europe’s 2000 Nominations ListBest lists per country

Further data searches on Top 3,000 +also as suggested by Country Experts

5,000 plus listScreened by the Country Experts

Elimination/Nomination of Companies

15,000 + Common DatabaseBased on Dun & Bradstreet Model

Searches on various Search Engines (D&B)

Source 1

Group Nominationse.g. Partners, Usine Nouvelle,...

Source 2

1995 Europe’s 500 databaseData Updating

Source 3

Individual NominationsMainly through direct faxing

Source 4

Source: Growth Plus, Europe’s Unlimited

CriteriaCriteria

Entrepreneur involvement Independence Growth in turnover & employment Organic growth PProfitability Size Minimum 3 years old Willing to particiapte

Birch IndexBirch Index David Birch Employee Growth Index:David Birch Employee Growth Index:

The absolute difference in employment between the upper (1998) and the lower (1993) year,

multiplied by

Employment in the upper year divided by employment in the lower year.

Example : if a company grew from 200 to 800 employees from 1993 to 1998, the Birch index would be :

(800-200) X (800/200) = 600 x 4 = 2400

Employment CreationEmployment Creation

121.528

348.839

0

50000

100000

150000

200000

250000

300000

350000

1993 1998

Employment StatisticsEmployment Statistics

New jobs: 227.311New jobs: 227.311 Percentage GrowthPercentage Growth

Annual: 23.5% Annual: 23.5% Cumulative: 187% Cumulative: 187%

Average per company: Average per company: 455 (from 243 in 1993 to 698 in 1998)455 (from 243 in 1993 to 698 in 1998)

53.2% had less than 100 employees in 199353.2% had less than 100 employees in 1993 1998 Europe’s 500: 181.000 jobs1998 Europe’s 500: 181.000 jobs

Breakdown By CountryBreakdown By Country

16 14 13 10

72

108

18

611

46

2

198 12

42

22

7

74

0

20

40

60

80

100

120

A B DK SF F D GR ICL

IRL I L NL N P E S CH GB

Turnover Increase (Euro bn)Turnover Increase (Euro bn)

13.2

43.4

0

5

10

15

20

25

30

35

40

45

1993 1998

Turnover StatisticsTurnover Statistics

Turnover increase: 30.2 Billion EuroTurnover increase: 30.2 Billion Euro Percentage GrowthPercentage Growth

Annual: 26.8% Annual: 26.8% Cumulative: 228.8% Cumulative: 228.8%

SectorsSectors

Europe’s 500 cover all SectorsEurope’s 500 cover all Sectors Agriculture, Forestry, Fishing & MiningAgriculture, Forestry, Fishing & Mining 55 Construction & MaterialsConstruction & Materials 22 22 Manufacturing - totalManufacturing - total 166 166 Transport & LogisticsTransport & Logistics 17 17 Trade - Wholesale & RetailTrade - Wholesale & Retail 64 64 Services - IT & InternetServices - IT & Internet 127 127 Services - OtherServices - Other 66 66

National StatisticsNational Statistics

Number of CompaniesNumber of Companies Compared to 1998Compared to 1998 SectorSector

ConclusionsConclusions

Mid-size Growth Companies are vital to Mid-size Growth Companies are vital to create jobs in Europecreate jobs in Europe

Growth companies exist in all countries Growth companies exist in all countries Growth companies can be found in all sectorsGrowth companies can be found in all sectors

Government policy should focus on Growth Government policy should focus on Growth Companies (Gazelles), not simply SME’s of Companies (Gazelles), not simply SME’s of Big Business.Big Business.