There are plenty of companies with a high propensity for growth across the country. Being able to identify these companies is important for a variety of purposes. Local economies may use this data to plan economic interventions more precisely while businesses may want to identify which companies to target in their sales and marketing activities.
But how do you identify companies with a high propensity to grow?
Traditionally, growth has been defined by the amount of investment a company has. This approach has drawbacks as it ignores companies that may be growing organically without investment. You may very well be well-financed but not growing too!
Identifying genuine growth is what’s important and, in partnership with local authority user group The Living Lab, Red Flag Alert has created a true growth propensity score. Taking firm-level data and applying complex calculations, we can identify which businesses will grow at a rate of 20% over 3-4 years – that’s the OECD’s definition of a fast-growing company.
Our model aggregates factors including turnover, staff headcount and revenue to give a clear 1-100 score. Any company that scores above 56 is considered to have a strong growth propensity.
To test our model, we scored over 600,000 companies that had filed financial accounts in the last 6 months.
Our findings? None of the companies that scored 0 increased their turnover by 20%. All companies that scored 100 did increase their turnover by 20%.
We think this proves it: our growth propensity score is accurate and can be trusted with a high degree of certainty.
Each company in Red Flag Alert's 13M business' database receives a growth score between 0-100. A company that scores 100 is very likely to increase its turnover by 20% in the next financial year.
Very unlikely to grow in the next year
Least likely to grow
Unlikely to grow
Likely to grow
Most likely to grow
Very likely to grow in the next year
Identifying companies that are innovative and growing is now easier than ever before with Red Flag Alert.
Book a demo to see how our platform works, today.
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