Discussion about the Growth Strategies Available to Entrepreneurial Ventures

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Growing a business is the process of having a greater market share by increasing customer base, thus increasing revenue, having more employees, and larger premises. Growth strategies are the theories to which a business may utilize to attempt to grow their business. The theories I will be discussing are evolutionary, classical, Schumpeter and mergers & acquisitions. Overview There are two types of business growth, organic, and inorganic. Organic growth Organic growth is the process of expanding a business using internal sources. Retained profit is an example of funding for growth. Another method of Organic growth is through private finds, such as the owner’s personal savings. Marks and Spenser’s growth is primarily organic; this however has taken a long time. M&S was founded in 1884. In 2010 M&S reported a profit increase of 17% to £348.6m, they later soon announced plans to spend £900m to grow their business by increasing sales. This method of expansion is good as, compared to using money from investors no interest, or return on investment will be required from investors, such as banks or venture capitalists. A disadvantage of organic growth is that the businesses resources may be scarce, meaning that the businesses may not be able to grow to its full potential if using external sources. Inorganic Growth Inorganic growth happens when a business expands using external sources, for example venture capitalists, mergers, banks, acquisitions. A benefit of inorganic growth is that is could be much faster then using organic growth, for example the time required to generate retained profit to use to expand. A disadvantage of inorganic growth is that the money will have to be repaid at some point, in the cas... ... middle of paper ... ...h 2014]. Donald F. Kuratko, 2013. Entrepreneurship: Theory, Process, and Practice. 9 Edition. Cengage Learning. Available at: http://books.google.co.uk/books?id=a4ndCCdI_m4C&printsec=frontcover&dq=Kuratko+%26+Hodgetts+growth&hl=en&sa=X&ei=EncUU5TEFJSM7Abb84A4&ved=0CDAQ6AEwAA#v=onepage&q=Kuratko%20%26%20Hodgetts%20growth&f=false . [Accessed 03 March 2014]. From dotcoms to dotgones.. - News - London Evening Standard . 2014.From dotcoms to dotgones.. - News - London Evening Standard . [ONLINE] Available at: http://www.standard.co.uk/news/from-dotcoms-to-dotgones-6298916.html. [Accessed 03 March 2014]. The Five Stages of Small Business Growth - Harvard Business Review. 2014. The Five Stages of Small Business Growth - Harvard Business Review. [ONLINE] Available at: http://hbr.org/1983/05/the-five-stages-of-small-business-growth/ar/1. [Accessed 04 March 2014].

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