Offering an exceptional or unique product and retaining high quality employees are the key drivers of business growth, according to a survey of medium-sized businesses conducted by Deloitte’s Growth Solutions team.

The survey of about 40 medium-sized private companies was conducted in May 2006 at a Southern Region CEO Summit in Hobart.

The majority of survey respondents believed that new product development and the quality of products and services are the most critical growth drivers.

Mr Tim Gullifer, Partner Deloitte Growth Solutions said: "In order for growing companies to stand out and remain ahead of the competition they need to invest in new product development and ensure their product/service offering is of a high standard."

"Offering an exceptional or unique product contributes to business growth as long as it is launched into the marketplace at the right time."

The survey also found that medium-sized businesses need assistance with developing and executing strategic plans and shortage of expertise remains a barrier for increased growth and profitability.

Other key highlights of the results include:

• 29% of respondents said the single economic factor impacting growth plans was Government regulation
• Almost 80% of respondents expected interest rates to rise over the next six months
• New product development (32%) and new distribution channels (26%) are the most popular growth strategies
• Over a quarter of respondents expect their organisation to grow more than 30% over the next 12 months
• The key growth strategy for the next 12 months for 43% of respondents is to grow internally
• The ability to recruit/retain good people (33%) remains as a barrier for increased growth and profitability
• Strategic planning (25%) was the most popular response when asked for one area in which businesses require the most assistance and,
• 45% of respondents said they intend to finance their growth plans over the next 1-2 years using private equity.