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Growth is crucial to the long-term survival of a business. It helps to acquire assets, attract new

talent and fund investments. It also drives business performance and profit.

Why is growth in business important?

Growth can be good for business for many different reasons. For example, it may allow you to:

 take advantage of new opportunities

 expand your products or services

 attract more customers

 increase sales

 employ more staff

It may also help you to respond to market demand, increase your market share and capitalise on

your growing brand. It often spurs innovation, helping you to differentiate in the market and stave

off competition.

Growth can also boost your business' credibility, allow you to broaden your supply base and

increase stability and profits. However, to be successful and sustainable, growth has to be strategic

and has to happen for the right reasons.

Reasons for business growth

Most businesses grow to become bigger, perhaps through increasing sales or market share, but size

isn't the only driver. Many other benefits motivate businesses to grow. For example:

 greater sustainability or resilience in the market

 lower costs - due to economies of scale

 greater market dominance

 greater buying and bargaining power

 ability to mitigate commercial risks - eg through diversification

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 ability to reduce the threat of competition

 ability to survive market fluctuations and downturns

 ability to attract the best talent and staff