Quotes

 

"Every economy loses about 10% of its jobs annually due to retirements, business closings, product life cycles, etc. Existing businesses are best positioned to replace those jobs."

Source: International City/County Management Association
Kotval et al. (1996). (1996) Business Attraction and Retention: Local Economic Development Efforts.
International City/County Management Association, Washington, D.C

Programmes dedicated to help established business, whether local or foreign grow, can not only compensate for that loss, but bring considerable further benefit to the local economy.

 

 

Client retention is key to business growth

Research done by Frederick Reichheld shows that increasing customer retention rates by 5% increases profits by 25% to 95%. The same logic applies to foreign direct investment; customer retention translates into increased job creation and capital investment, which results in further spill-overs in to the local economy.

Source: Reichheld, Frederick(2001) Loyalty Rules! How todays leaders build lasting relationships, Harvard Business Press.
 

 

Transnationality can be complex

The top 100 MNEs in UNCTAD’s Transnationality Index have on average more than 500 affiliates each, across more than 50 countries. They have 7 hierarchical levels in their ownership structure (i.e. ownership links to affiliates could potentially cross 6 borders), they have about 20 holding companies owning affiliates across multiple jurisdictions, and they have almost 70 entities in offshore investment hubs. In contrast, the average hierarchical distance for affiliates is at three steps from the parent.

Source of data: UNCTAD (2016). “World Investment Report 2016. Investor Nationality: Policy Challenges”. New York: United Nations
wir2016_en.pdf
 

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