Business growth and interventions are among key issues a business person must understand in the process of operating business. They are important because most business persons aspire to grow and in order to grow, one needs to go step by step. Each step has challenges that need to be addressed for further growth.


Meaning of Firm Growth.

Growth is a means of an increase in size or an improvement in quality as a result of a process of development, in which an interacting series of internal changes leads to increase in size accompanied by changes in he characteristics of growing object.



Types of Firm Growth.

There has been many types of growth through out history, however growth in this matter can be in four (4);


Qualitative Growth.

This is the change that occurs when the owner of the business decides not to owner-operate but to owner-direct business. In other words, it is the change that occurs in the style of managing or operating the business. This can also occur if the firm improves the quality of products or services, as an indicator of firm growth.


Quantitative Growth.

This occurs through quantifiable factors such as increase of workforces (if the firm had 50 workers last year and this year has 70 of them), an increase in profit (from tens of thousands income to a hundred of them and more), an increase of sales (output increase from lets say 600 products in six months to 2000 in the same period of time) and revenue among others.


Vertical Growth.

Here the firm expands farther along the supply chain. If the firm that supplies a product expands into product producing company, that's vertical growth. This firm growth contributes much to the national GDP, creates new jobs, innovation, new value and increases outputs and variety of goods.


Horizontal Growth.

This occurs when there is an increase of numbers of firms under the same management. One simple concept is of a person with two two retail shops located at different areas with the same services or products. Another concept would be of that person owning more than one retail shops offering more than one type of services and products.

Some people chose not to grow vertically in order to ensure a constant flow of income.  Others avoid the complexities of a bigger operation which one may not be able to manage or to avoid visible tax and other regulatory bodies. Additionally, it can also be associated with person behavior that one feels comfortable and proud of solely owning many related things.