Business Activity || All you need to know about Business growth and why you need to grow your Business.

Hello entrepreneur, how business going? I am sure it going well. In my last post in this community I talked about concept of business growth and I want to continue by discussing the reason for business growth and types of business growth.

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Reason for business growth.

Research have shown that more than half of all newly establish business fail in less than two years. Also most of the businesses that survive the first two years find it difficult to grow. So with all these statistic, only few businesses survive and regenerate and also create other businesses. Typically, most people ascribe businesses failure or success to chance/fate or certain environmental conditions which include someone family background. Although, some environment factors influence business growth either positively or negatively but the entrepreneur positive attitude, skills, discipline, competences, experience and resilience are the real factors that determine the transition of an enterprise from startup to fully grown or diversifies venture.

The major question to ask an entrepreneur is what motivate him/her to starting and growing their businesses. Most times, entrepreneur often make critical investment, take calculated risks and learn as time passes because of their desire to make money which comes with enjoying some rights and privileges that are associated with wealth. Other reasons of been a successful entrepreneur include improving social status and well-being, gaining control over their own destiny and greater opportunity for community services and philanthropy.

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Employees usually enjoy increase in income/benefit as well as advancement with businesses that grow. The government tends to offer assistance to business growth reason because it reduce the number of unemployment and also social tension, these also raise more revenue from taxes. So with all this reason it is in the best interest of business owners and also stakeholders in the society for businesses to grow and thrive because if majority of the business in the society keep growing, it create social and economic value for all.

Generally, startups and small businesses generate employment opportunities. International Labour Organization (ILO) in 2007 estimated that about 70% of people in Sub-Suharan Africa rely on small informal establishment for livelihood. Business combine both human and material resources to create value. As activities of enterprises increase due to the increase in labour productive and the efficient use of resources, with all things been equal that will lead to high wages for individual worker, also more profit for the company and this will rise the GDP of the nation. In a situation where productivity is higher, cost of production is usually lower and with lower cost of production, the product brought by citizen is cheaper and these in turn increase the standard of living.

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Types of Business Growth.

There are two main commonly known type of business growth.

• Internal growth
• External growth.

• Internal Growth:

This is a typically steady process of expansion from within the firm. This mostly happen when the owner of a business invest more capital or plough back profit from the business into the business in order to acquire new assets, build additional plant, employ more staff or to meet up with latest technology. The major advantage of internal growth is that the business is able to leverage is assets and also experience over time. The disadvantage of this approach is that it takes time and this can serve as a weak point which rivals may utilize to gain advantage in the market.

• External Growth:

This is the opposite of internal growth. The business growth is dependent on seeking external finance or by merger and acquisition. This involve relying on external resources into the business to help fund expansion. This usually accompany with change in ownership structure of the business. The advantage is that fund is available for the firm to utilize as early as the merger is complete.

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Conclusion

The need for business growth is important not only for the company survival but as explained above it also help the employee, society and government. Most business find it hard to grow due to the management lack of vision and competency to take the business to the next level.

Thank you for reading

Business name:	Ai'nu Farm
Owner's name:	@weasell
Business address:	Zaria, Kaduna State, Nigeria.
About us:	Click Link.

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