Global perspectives for private companies: Agility in changing markets has been saved
Global perspectives for private companies: Agility in changing markets
Highlights from Deloitte Private’s 2019 survey of private company leaders
Even with the current economic backdrop clouded by signs of slowing across many parts of the world, most private companies worldwide are confident about their organizations’ prospects for success over the next two years.
Most private companies surveyed expect their revenues, profits, productivity, and capital investment to go up in the coming year. 49 percent anticipate growing their full-time workforce.
One explanation for this broad sense of confidence in the current business environment is that private companies have the freedom to maintain a longer-term perspective, since they face fewer short-term pressures from stakeholders, analysts and other key stakeholders than publicly held companies. Private companies also tend to be more agile as organizations, able to adapt quickly to changing market conditions.
Trade barriers, cyberattacks – top risk concerns
The risk respondents were most concerned about were trade barriers, potential cyberattacks and the cost of raw materials.
Disruption is a clear focus for many
Competitive threats are clearly on the minds of private company executives, as half of the respondents see disruption by either a traditional or nontraditional competitor as at least a medium risk, and nearly one in five characterize it as a high risk.
Innovation, productivity and culture are strengths
Asked to identify their sources of competitive advantage, respondents pointed to the development of new products and services, high productivity, business model innovation and growing existing markets. Private leaders also view a strong corporate culture as integral to their business’s performance.