1.3.3—Business growth

Growth increases the scale of a business, measured through output, sales, assets, employees or market share. It can lower average costs or strengthen bargaining power, but it can also add complexity.

Internal growth uses the firm’s own expansion; external growth uses mergers, takeovers or other combinations. The route affects speed, control, finance and integration risk.

A food producer may expand its own factory gradually, or acquire a distributor to reach customers faster; the second route brings integration and culture risks.

Growth is not automatically success: revenue can rise while cash, quality or profitability deteriorate.