Opportunities and Difficulties in Organic Growth

In: Business and Management

Submitted By simpledave
Words 5643
Pages 23
Table of Content

1 What is organic growth? 1

2 Why organic growth? 1

Preparing for organic growth 2

3 How organic grow 3

The models included 3

4 Growing pains in organic. 6

5 Transition in organic growth 7

6 Conclusion 8

7 References 9

What is organic growth?

In growing process for entrepreneurial business, internal (organic) growth is one of the most important steps for a firm to sustain the growing process. Through the definition and research from Barringer and Ireland (2010), most of the entrepreneurial business use organic grow as their first main growth strategy, when it doesn’t rely on outside intervention. The rate of entrepreneur failure was also mentioned by Scott Shane (2008) that only 50% of the entrepreneur business still alive after the first 5 years. Thus focusing into internal growth would be a strong strategy not only for standing in the competitive market but also is a sustain way of growing for a company in the first step.

Why organic growth?

In entrepreneur business, the theories from Schumpeter (1962) about the competitive process of capitalism which was not created by timid elements of reducing price but the innovation and creative from inside the firm itself generated overall economic growth and development, have been attracting the attention from even modern economists. Also based on Schumpeter (1962) as the changes are the key factors for growing. A newly start-ups company are more dynamic and making changes rather than the old one, it makes the competitive advantages for those firms as well. The start-up businesses often take more risks than the long term established one, they often trying to discover the new market rather than compete with the existing one. The similar thinking also mentioned by Barringer and Ireland (2010) that the entrepreneurs always have to deal with lacking of resources…...

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