Organic Growth

What is Organic Growth?

A business can grow by either increasing output, production and sales, relying on internal resources from its current business operations (organic growth), or by taking over other businesses using additional funding, and adding these to its existing operations (acquisition growth).

Organic growth is usually slower than growth by acquisition, but is less risky as it relies on management continuing with hopefully a tried and tested formula and expanding into new markets.

As output and sales can go up as well as down, organic growth can be negative.

For further information on the meaning of organic growth strategy see the Wikipedia definition.

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