EY: How private companies are driving growth

Growth prospects for all major economies are finally swinging upward in 2018, with International Monetary Fund (IMF) forecasts currently at 3.9% for the year. This rare synchronization of growth across the globe is boosting the growth ambitions of middle market companies, according to the findings of the EY Growth Barometer 2018. Private companies [1], as a key part of the middle market, don’t just reflect this optimism, they amplify it and help drive economic success and innovation. Private companies comprise 80% of those middle market executives surveyed in the EY Growth Barometer.

Perhaps unsurprisingly, organic growth, whether that be expansion into new overseas geographies or into adjacent business sectors, dominates private company leaders’ growth strategies. To ensure they meet aggressive growth ambitions, they focus on finding the right talent, seeking out diversity and young talent with digital capabilities. Private company leaders are investing heavily in new technologies to deliver process efficiencies. These expansionist activities are putting a stress on cash flow, however, and ensuring sufficient working capital is a key challenge.

EY Growth Barometer Survey Methodology