Al­lworld Net­work rec­og­nizes ‘Pak­istan 100’

Enterprise - - Contents -

Al­lworld Net­work’s in­au­gu­ral Pak­istan Fast Growth 100 sum­mit high­lighted the suc­cesses of some of the fastest­grow­ing un­listed com­pa­nies in Pak­istan, de­liv­er­ing the mes­sage that Pak­istan is very much open for busi­ness.

Af­ter more than 15 years of pro­mot­ing en­trepreneur­ship in the de­vel­oped and de­vel­op­ing worlds, Al­lworld Net­work was es­tab­lished in 2008 by Deirdre Coyle Jr., Anne Habiby and Michael Porter, Har­vard Busi­ness School Pro­fes­sor and global com­pet­i­tive­ness ex­pert.

The Pak­istan 100 is made up of 87 ranked com­pa­nies that reach Al­lworld’s in­ter­na­tional stan­dards for com­pet­i­tive fast growth com­pa­nies and 12 “start-ups to watch” that tend to be younger or smaller but oth­er­wise have a strong growth tra­jec­tory that should qual­ify them in the near fu­ture.

Ac­cord­ing to Sa­mad Da­wood, CEO, Cyan Limited, “The Pak­istan 100 are a tes­ta­ment to the zeal and pas­sion of the Pak­istani pri­vate sec­tor. Their ac­com­plish­ment is even more im­pres­sive given the chal­lenges that they have had to en­dure in the re­cent years. They and oth­ers like them have in­spired Cyan to cre­ate an ecosys­tem where en­trepreneurs, large cor­po­ra­tions, providers of cap­i­tal and reg­u­la­tors can ac­tively en­gage to share best prac­tice, cre­ate busi­ness op­por­tu­ni­ties, seek out cap­i­tal and ul­ti­mately cre­ate reg­u­la­tory en­vi­ron­ments that fur­ther foster en­trepreneur­ship. Our goal is sim­ple: in­vest in busi­nesses that have the po­ten­tial to take cen­tre stage in the global econ­omy while im­prov­ing the lives of mil­lions in the process. I think we are off to a great start!”

Al­lworld sys­tem­at­i­cally iden­ti­fies pri­vate growth com­pa­nies and ranks the fastest grow­ing com­pa­nies for Ara­bia 500, Africa 500, Asia 500, Eura­sia 500 and Latin Amer­ica 500. Be­ing on Al­lworld rank­ing puts com­pa­nies on the world map, draw­ing the mar­ket to them – pre­cisely called Vis­i­bil­ity Eco­nomic­stm. Ranked com­pa­nies “go public”, at­tract­ing new in­vestors, cus­tomers, joint ven­ture part­ners and tal­ent and con­tinue to grow and get up to scale.

It was felt by the founders of Al­lworld that the com­pa­nies in the emerg­ing economies are be­ing held back more by a vis­i­bil­ity deficit than ca­pa­bil­ity deficit. The invisibility of com­pet­i­tive and suc­cess­ful firms cre­ates mas­sive eco­nomic in­ef­fi­cien­cies, as in­vestors have to choose from limited op­tions.

Al­lworld rank­ings are based on rev­enue growth rates and not com­pany size. In­ter­ested com­pa­nies, hav­ing a rev­enue growth rate of over 40 per­cent for at least three years, ap­ply on­line for con­sid­er­a­tion and pro­vide au­dited fi­nan­cial state­ments. Bril­liant star­tups and younger com­pa­nies are also in­cluded as Com­pa­nies to Watch. Al­lworld eval­u­ates these grow­ing com­pa­nies on the same lines as the Forbes an­nual or the For­tune 500 list.

Af­ter rank­ing com­pa­nies in Saudi Ara­bia, Jor­dan, Le­banon, Turkey, Pak­istan, In­dia and South Africa, the list­ings are now be­ing ex­panded to Re­gional 500s. The lat­est re­lease was that of Ara­bia 500 in De­cem­ber 2011, in which Pak­istan claimed num­ber 2 spot among 14 coun­tries.

The re­port in­di­cates that the Pak­istan 100 com­pa­nies are grow­ing at a stel­lar CAGR (com­pound an­nual growth rate) of 55 per­cent per an­num, em­ploy over 41,000 peo­ple, and their to­tal rev­enues went up to roughly $1.5 bil­lion in 2010.

The rank­ings con­tain a well-bal­anced in­dus­try rep­re­sen­ta­tion, with soft­ware ser­vices and prod­ucts lead­ing with 10 per­cent, fol­lowed by con­struc­tion and en­gi­neer­ing at 9 per­cent, and tex­tiles and fash­ion at 8 per­cent. A young com­pany, the six-year old E2E Sup­ply Chain, topped the list.

The spirit of en­trepreneur­ship is such that half of the ranked firms have helped their em­ploy­ees set up their own ven­tures. More­over, 82 per­cent of the firms’ lead­ers plan to start an­other 140 com­pa­nies within the next two years, af­ter hav­ing started 264 com­pa­nies al­ready.

Im­por­tantly, in­ac­ces­si­ble fi­nance did not hold these ven­tures back as 83 per­cent of them started out sans the sup­port of an­gel in­vestors or ven­ture cap­i­tal­ists. It is a bright prospect that at the time when in­vest­ment in­flows have sharply de­clined, these com­pa­nies have in­deed made a strong case that Pak­istan is a vi­brant and hap­pen­ing busi­ness en­vi­ron­ment, de­spite the odds.

The level of en­trepreneur­ship is rapidly grow­ing in Pak­istan with a num­ber of in­no­va­tive en­tre­pre­neur­ial ven­tures emerg­ing on the coun­try’s eco­nomic land­scape. This is a wel­come sig­nal for a fresh wave of lo­cal and for­eign in­vest­ments in Pak­istan.

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