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FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY
FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY
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FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY
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FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY
FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY

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FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY
FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY
Journal Article

FINANCING INNOVATION AND GROWTH: THE NEW IMPERATIVES OF OPERATING IN A FRAGILE RECOVERY

2010
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Overview
Many companies have become increasingly optimistic about prospects for getting back into growth mode. According to a survey of public and private companies conducted by Ernst & Young towards the end of 2009,1 roughly two-thirds of executives believe they will hit their revenue and profitability goals for the next two years. Still, some companies are struggling. More than one-third of respondents (35%) say they are pessimistic about achieving growth targets, and only 43% expect revenue to increase in the coming year. Less than half (45%) expect an increase in overall profitability, while almost one-third (30%) expect layoffs in the next twelve months. Businesses recognize that they are operating in an environment marked by continued uncertainty, weaker demand, margin erosion, capital scarcity, and lower tolerance for risk. This \"new normal\" will, in turn, create a new agenda, one keenly focused on raising new capital needed for corporate growth while preserving the funds a company already has. This new agenda will influence decisions on operational restructurings, potential acquisitions and divestments, and strategic partnerships.