Trendsetter Barometer business outlook - Private-company revenue forecasts rise despite tempered optimism

11/26/2012 by Private company services

PwC's quarterly Private Company Trendsetter Barometer tracks the business issues and best practices of privately held US growth businesses. This quarter's report incorporates the views of 234 chief executive officers (CEOs/CFOs): 136 from companies in the product sector and 98 in the service sector, averaging $337 million in enterprise revenue/sales, and including large, $500M-plus private companies.

Survey highlights

  • Private companies increased their projected revenue growth rate for the next 12 months, despite ongoing uncertainty about the economy.
  • The increase was driven by companies selling solely in the United States. Their projected revenue growth rate rose from 6.9% to 8.6%.
  • Slightly more private companies are optimistic about the US economy (44%) than uncertain (41%), and markedly more confident than a year ago.
  • Most private companies (83%) expect positive revenue growth over the next year.
  • Lack of demand, continued legislative/regulatory pressures, and lack of qualified workers remain top potential barriers to growth.
  • Private companies that sell internationally continue to outpace their domestic-only peers in prospective spending.
  • Hiring plans hold steady, with 55% of Trendsetter companies looking to add new employees.
  • Although still low, bank-loan activity nearly doubled, with 11% of private companies reporting new bank loans.

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