Industry and Retail Lead Portugal's Economic Growth Potential, Study Reveals

Industry and retail sectors, particularly food and construction, are identified as having the highest growth potential in Portugal, according to a study by Business Round Table (BRT) and Informa D&B.

A total of 396 privately-owned companies with national capital control were identified as key drivers for Portugal's economic growth. These companies, referred to as 'Adolescent and Young Adult Companies', generate between 30 and 150 million euros in revenue, contributing approximately 22 billion euros to the national turnover, which is about 8% of Portugal's GDP. They also create 94,000 jobs and generate 4.6 billion euros in exports.

Between 2019 and 2023, 63 of these companies showed a growth potential with an average turnover growth rate (CAGR) exceeding 20%, positioning them as potential leaders of the next generation of major Portuguese companies.

Sector and Geographic Distribution

• Industries, wholesalers, and retail dominate the list, with a special focus on the food industry and construction.
• Geographically, there's a strong coastal concentration, with Lisboa leading (98 companies), followed by Porto (75), Braga (48), and Aveiro (41).
• These companies are spread across almost all districts, including inland regions, the Azores, and Madeira.

Challenges and Opportunities

Teresa Cardoso de Menezes, General Director of Informa D&B, highlighted the challenge of scaling up in a small country like Portugal. The study used criteria to identify the most productive, competitive, and innovative organizations, capable of attracting investment.

The Portuguese business landscape is predominantly made up of micro and small to medium-sized enterprises (SMEs), with very few managing to consistently increase their turnover or move up in size category. Only 3.4% moved up a category between 2019 and 2023, 6.8% grew for 5 consecutive years, and a mere 1.3% sustained growth over 10 years.

Carlos Moreira da Silva, President of BRP, emphasized the need for more large companies in Portugal, stating that supporting high-potential SMEs is crucial for boosting productivity, wealth, and wages.

The BRP Association comprises 43 leaders from companies and business groups across various sectors, geographies, and development stages, collectively generating global revenues of 124 billion euros (59 billion nationally), employing 424,000 people worldwide (218,000 in Portugal).