For the first time, “Globes” ranks the 50 fastest growing companies in Israel, in collaboration with leading global business data company Statista.
According to figures from the State Comptroller, 593 thousand companies are registered in Israel’s official database. Of these, only 367 thousand are recorded as active. Fifty companies, a fraction of a percent, are in the “Israel Growth Champions 2022” rankings by “Globes” and international business data company Statista.
The lowest average rate of growth over the period covered by the survey is 9.8%. The highest is 460.1%, and belongs to Inovytec Medical Solutions. According to Felix Kapel, who is responsible for the growth rankings carried out by Statista around the world, this rate is higher than those of the top ranked companies in Austria and Switzerland, which have economies similar in size to that of Israel, and higher than the top ranked company in a ranking that has yet to be published, that of Singapore.
Does this mean that only those fifty companies grew such high rates during the period surveyed (2017-2020)? Presumably not. But in that question lies one of “Globes'” two motives for embarking on this ranking.
The first is the recognition that the country and the economy cannot grow and prosper without growth on the part of the smallest units in them, and that without growing firms there is no hope of general sustainable growth. There are of course additional important players in the growth story: workers, managers, the education system, infrastructures, financial institutions, and so on. This is an orchestra that plays together, and when it’s off tune, success recedes.
Of course there are also critical broader questions in the discussion on growth, such as, is all growth is socially beneficial? How do you grow without at the same time destroying the planet?
The other motive for publishing the growth raking is to do with the methodology of the survey, which you can read about in detail here. The survey is based on the readiness of company managers to reveal their annual revenue figures. This is a basic condition for being examined for the ranking. Not “rate of growth, but the revenue numbers themselves.
In the nature of things, we are talking about privately-held companies, which are generally not keen to disclose their financial data. Nevertheless, of the fifty companies in the raking, only six are public. 44 companies showed not only the ability to grow, but also the courage not to hind behind the veil of privacy. They will all have their reasons, but at bottom is presumably the recognition that transparency is beneficial.
As a newspaper that deals in revealing information to the public and making it accessible, we believe that transparency is a value that we should promote. Our hope is that in the coming years the list of companies prepared to share their numbers with the public will lengthen, enabling all of us to obtain a better picture of the sectors of the economy, and even giving us a decision-making tool.
“The Fastest Growing Companies in Israel” is a list of fifty companies based on CAGR (compound annual growth rate) in the period 2017-2020.