G7 closing gap with BRICS in creation of new businesses
18 June 2014
The gap in growth rates of new business formation between the G7* and BRICS** economies narrowed in the year to 2013***, according to research of the most recent globally comparable data by RSM, the seventh largest global network of independent audit, tax and advisory firms. RSM reviewed 38 countries in its report, ‘Rebuilding the Global Economy’.
RSM’s analysis includes an insight into which industries are leading new business creation, and shows that the foremost drivers are wholesale and retail trade and professional services. By contrast, financial services and manufacturing have generated relatively small shares of enterprise births, as financial regulation and low demand continue to constrict these markets.
The report indicates that well targeted government interventions can boost the survival rates of startup companies that require time and capital to translate their competitive assets into sustainable growth.
Edvards Merhels, managing partner of Merhels Revidenti Konsultanti, comments: “As RSM report does not address Latvia, it is worth noting that during the last 10 years Latvia has seen only net new business foundation growth, even during the financial crisis commencing in 2008. The most recent data shows that in 2013 the net surplus was nearly 13 000 companies (2012: net surplus of 13 400 companies). This can be attributed to such factors as ease of starting the business in Latvia, certain government incentives and entrepreneurial spirit of Latvian people.”
* Canada, France, Germany, Italy, Japan, UK and US
** Brazil, Russia, India, China and South Africa
*** 2012 (most recent globally comparable data available)