A new report released by the World Economic Forum has suggested that the top 1% of entrepreneurial firms is responsible for the creation of 40% of jobs among start-ups and for 44% of their total revenue. So what makes the top 1% so successful?
According to a new report, Global Entrepreneurship and the Successful Growth Strategies of Early-Stage Companies, released by the World Economic Forum with Stanford University and Endeavor Global, 40% of job creation among start-ups and 44% of revenues are generated by the top 1% of entrepreneurial firms, with the top 5% being responsible for 67% of jobs and 72% of revenue.
The report, which is a result of an analysis of headcount and revenue data of over 380,000 companies, reviewed across 10 countries, over the course of 18 months, also advises governments to learn what makes these top 1% firms so successful.
“Understanding the elite few in their own ecosystem may prove a far more effective strategy than trying to replicate the success factors of other entrepreneurial hubs such as Silicon Valley,” said George Foster, co-author of the report and Professor in the Graduate School of Business in Stanford University, USA.
Featured in the report are also studies of seventy the world’s most successful high-impact entrepreneurial ventures, such as Australia’s Atlassian, Fortescue Metals Group, Paladin Energy and Resmed.
The report even questions why Vegemite has so far proven unsuccessful in its attempts to enter new markets.
According to Linda Rottenberg, Co-Founder and Chief Executive Officer of Endeavor, “This report offers compelling proof that to drive economies forward, the key is not to generalise approaches for all entrepreneurs, but to focus resources on high-impact entrepreneurs, those innovators with the highest potential to scale.”
Read or download the report below.