While the U.S. economy continues to wrestle with persistently high unemployment, slow growth and challenges from other developed and emerging economies, the more than 600 American companies named as finalists in the 2012 U.S. Ernst & Young Entrepreneur Of The Year® program are creating jobs, expanding their businesses and planning for growth. Ernst & Young, in collaboration with the Kauffman Foundation, looked at what these companies are doing right, and in a new paper, "Defying gravity: High-growth entrepreneurship in a slow-growth economy," released today at the Ernst & Young Strategic Growth Forum®, identify eight reasons why these exceptional companies are bucking the trend and finding success.
The Entrepreneur Of The Year finalists are spread across all industries, including technology, manufacturing, consumer products and energy. Between 2009 and 2011, these companies, which together employ nearly 700,000 people, achieved 30 percent job growth (over 150,000 jobs) and 48 percent revenue growth, dwarfing U.S. figures as well as companies in the Standard & Poor's index, which had revenue per share growth of only 15.9 percent over the two-year period from 2009 to 2011. Companies in energy, cleantech and natural resources led in employment growth, at 49 percent over the period 2009 to 2011, closely followed by technology (42 percent) and services (33 percent).
So what are these companies doing right? According to the paper, the eight key reasons these companies are succeeding are because they:
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