Half of CEOs globally prioritise new business ventures

60% are eager to pursue generative artificial intelligence-enabled ventures.

Half of CEOs view the development of new business ventures as one of their top priorities, according to a McKinsey global survey.

The survey, which polled more than 1,100 business leaders, found that 60% of respondents are eager to pursue generative artificial intelligence-enabled ventures in the next five years.

McKinsey noted that capital availability remains the primary constraint on companies, but those that have invested 20% of their growth capital into new ventures achieved revenue growth which is two percentage points higher than those that did not.

The survey also found that the ten largest new ventures built by established companies in the past decade have averaged 1.5 times more revenue than that of the largest start-ups launched in the same period.

As such, venture-building companies of $1b or more in annual revenues that invest at that level see revenue growth that is 2.5 percentage points higher, compared to companies that invest nothing. 

According to McKinsey, one way for companies to address this is to dedicate funding. The survey found that those who invest $3m can expect an $8m business after five years, and those who invest $30m can expect $90m.

Furthermore, companies that make venture-building part of their growth strategy find that having a dedicated venture-building team helps these initiatives thrive. 

Organisations must also look outside the company’s boundaries for missing capabilities. McKinsey observed that most successful builders recognise the benefits of outside assistance via acquisitions and partnerships.