The number of high-growth companies in Russia has increased significantly

A recent analysis of economic dynamics has recorded a significant increase in the number of high-growth companies in Russia. This is often due to the favourable economic environment and the emergence of new growth opportunities in various sectors.

The latest edition of the Fast Growers Survey included 1,711 organisations that have shown a steady revenue growth rate of more than 10% per annum at constant prices over the previous four years.

In comparison, the previous report included just 1,034 such enterprises whose performance was examined over the 2018-2022 period.

Meanwhile, the number of leading businesses that have shown revenue growth of at least 20 per cent annually over the four years was 598, compared to 336 a year earlier.

According to the results of the latest survey, following the growth in the number of high-growth enterprises, we can see an increase in the number of them in high- and medium-tech sectors and in science-intensive areas.

Over the last four years, such enterprises have increased their profits by an average of 72 per cent and their revenues by 43 per cent per year. The most dynamic average annual revenue growth rates were recorded by enterprises operating in the field of wholesale of computers, peripherals and software.

The list of fast-growing companies has been updated by 70% over the last year.

To be categorised as a high-growth enterprise, the revenue of an enterprise must have grown by at least double-digit annually over the past 4 years. Its revenue in 2019 should have been at least 101 million rubles. In addition, the enterprise must not be affiliated with the largest holdings, must not have state structures among its shareholders, and its net assets must be positive.