Mumbai, Nov 26 (IANS) Only 25 percent entrepreneurs, who have set up a strong second line of management, have 3.5 times higher average revenue size compared to companies who do not, said a report released on Saturday.
The report, prepared by ASCENT-EY, aimed at understanding entrepreneurs’ readiness for scalable growth, and also tried to find out the challenges they face in doing so across seven parameters – customer, leadership, people, operations, finance and transactions, risk management and technology.
The report, titled “How ready are entrepreneurs for the journey of scalable growth?”, found that people who invest in these seven drivers see a higher financial success as compared to others.
Commenting on the report, ASCENT’s founder and Marico Ltd’s Chairman Harsh Mariwala said: “For me, the biggest and most interesting take away is the fact that investment in different processes which support customer centricity, leadership planning and operational efficiency, has a multiplier effect on the business and provides disproportionately higher returns to the entrepreneur.”
The report also indicated that companies who have a total rewards mechanism have 15 percent higher employee productivity when compared to companies who do not have total rewards.
Similarly, companies who used technology to drive growth have registered three times higher average revenue size compared to companies that do not use technology, the report pointed out.
“Entrepreneurs need to understand that achieving growth is not enough; it also needs to be scalable for long term sustainability and success,” said Pinakiranjan Mishra, Partner and National Leader – Retail and Consumer Products, EY.