In order to qualify for the 2006 Europe’s 500 Listing, companies had to show growth in employment and turnover during the three-year reference period (from 31 December 2002 to 31 December 2005). All 500 winning companies fulfilled the eligibility criteria.

The fast growing, high performing mid-sized companies present in the 2006 edition of Europe’s 500increased their employment by 57,3% and their turnover by 66,6% over the last three years. They maintained employment growth at an impressive annual rate of 16,3% while showing a strong annual turnover growth rate of 18,6%. This compares favourably to last year’s findings, when the average annual rate of both employment and turnover growth was 14%.

Although the early 2000s saw a general slowdown, the companies in the 2006 Listing created an average of 297 jobs each (99 per year) over the 3 years from end 2002 to end 2005. Each winning company in 2006 has on average created 13 jobs more per year than the companies represented in the 2005 Listing.

NB:
The absolute employment growth is equivalent to the number of real (actual) new jobs that were created in the reference period (31 December 2002 – 31 December 2005).
The absolute annual employment growth is equivalent to the average number of real (actual) new jobs that were created in each of the 3 years.

The relative employment growth is equivalent to the cumulative employment growth rate (in %) between 31 December 2002 and 31 December 2005.
The relative annual employment growth is equivalent to the employment growth rate (in %) in each of the 3 years.

The absolute turnover growth is equivalent to the turnover (in €) that was created in the reference period (31 December 2002 – 31 December 2005).
The absolute annual turnover growth is equivalent to the average turnover (in €) that was created in each of the 3 years.

The relative employment growth is equivalent to the cumulative employment growth rate (in %) between 31 December 2002 and 31 December 2005.
The relative annual employment growth is equivalent to the employment growth rate (in %) in each of the 3 years.

 

Companies per Country

The annual Europe’s 500 Listing identifies 500 of the most successful job-creating, entrepreneurial companies in 28 European countries: the 25 European Union Member States plus Iceland, Norway and Switzerland. Since the 2005 edition of Europe’s 500 nominations from the 10 newest EU Member States1 have been accepted.

For the first time, the 2006 Europe’s 500 Listing received company nominations from 27 out of 28 eligible countries (the sole exception being Malta). The number of fast growing companies which fulfilled all the criteria of Europe’s 500 also rose to represent 25 countries, up from 19 in 2005. Among the newcomers, winning companies were identified in 6 new EU Member State countries – Estonia, Hungary, Latvia, Lithuania, Poland and Slovenia – with three companies among the Top 50 winners.

  • Country best represented in Listing: Once again Germany had the highest number of winners with 109 (2005: 111) followed by the United Kingdom with 72 companies (2005: 106).
  • Country best represented in top 10: France not only took the Number 1 spot once again (as it did in 2005) but saw 4 of its companies featured among the Top 10 (up from 2 in 2005).Iceland also performed exceptionally well with 2 winners among the Top 10 (up from 1 in 2005), followed by Germany also with 2 (unchanged from 2005).

Chart 1: Winners per Country 2006 and 2005

Chart 2: 2006 Winners Breakdown per Country in %

1 The 10 newest EU Member States are: Cyprus, Czech Republic, Estonia, Hungary, Poland, Latvia, Lithuania, Malta, Slovakia and Slovenia.

Employment Growth

Europe’s 500 uses the David Birch Employee Growth Index, which combines absolute and relative job creation, to rank the 500 companies. The graphs attached show both absolute (real) and relative employment growth.

Altogether the 500 companies created almost 150.000 jobs between 2002 and 2005, bringing their total employment to 408.385 in December 2005. This is an increase of 20.000 more jobs over three years compared to the winners in the 2005 Listing – a cumulative average growth rate of 57,3% over the reference period or 16,3% per year.

Chart 3: Employees Beginning and End of Reference Period (2006 and 2005 Listing)

Absolute Employment Growth
The average job creation over the three-year period was 297 per company or 99 per year, per company. Job growth was particularly impressive in Iceland (396 per company, per year) andIreland (272 per company, per year). Overall, both countries are very well placed in the Listing, with 4 out of 5 Icelandic companies and 4 out of 9 Irish companies in the Top 50.

Chart 4: Absolute Annual Employee Growth (per Company)

Relative Employment Growth
The 2006 Europe’s 500 champions of growth increased employment by an average of 57,3% over the three years, maintaining this at an impressive average annual rate of 16,3% (up from 14% in last year’s Listing).

The country with the highest average job creation was Iceland, which delivered a phenomenal annual relative growth rate of 72,3%. This corresponds to the very high absolute job creation of the Icelandic winning companies.

Other exceptional performers were Lithuania with 45,4%, Slovenia with 27,3% and Latvia with 25,2% , all demonstrating a relative employment growth that was far beyond the European average. For Lithuania and Slovenia, this can be explained by the fact that 50% or more of their winners are small companies (which makes it easier to show a high relative job growth, see below), whereas two-thirds of Latvia’s winners are mid-sized companies. Latvia’s overall performance was also very impressive with 2 out of 3 companies ranked in the Top 50.

Chart 5: Relative Annual Employee Growth

For More Information About European Private Growth Companies, Please Visit www.europes500.com