Saturday, 25 July 2015

Obstacles for DRC companies, split by the firm growth rate

In my last post, I wrote about how DRC companies can be divided by their rate of sales growth.  A majority of companies experienced declining sales, but a few had very rapid growth.  What makes these types of companies different?

The tables below show the main obstacles to operations reported by flat or declining companies (0% growth or less), marginal growers (more than 0% and up to 5% growth - a slightly different definition from my last post), growers (more than 5% and up to 20%), and growth champions (more than 20% growth).

My immediate impression is that the worst performing companies have the biggest problems with electricity supply.  It is possible that they are having problems just in running their productive operations, even before problems occur in the market.  For better performing companies, practices of informal competitors become a more prominent problem.  It seems that better energy supply will disproportionately help struggling companies.


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