Importance Of Growth Assignment Help | Importance Of Growth Homework Help

Importance of Growth

Business is an organ of growth. Every entrepreneur likes to see his enterprise grow in terms of sale and revenue. This is exemplified by the Four Stage Growth Model which highlights the stages under which an entrepreneur has to more in order to grow and develop. These stages are:

(i)    Pre-start up stage.
(ii)    Start up stage.
(iii)    Early growth stage
(iv)    Later growth stage.

An entrepreneur may make a humble beginning with a comparatively small enterprise. Small enterprises are, however, vulnerable to even mild changes in the environment, change in people’s tastes, in government policies, in fashions and in style of living-anything can affect a small and fledging enterprise. Even well, managed units, in due course, many hit a crisis point and even face closure. Scarcity of raw materials availability of substitutes in the market, obsolete technology of sheer lack of vision-any of these may pose a threat to an enterprise. Sustainability therefore, becomes a crucial managerial function for an entrepreneur.

The analogy of birth of a child can be used to explain the problems involved in launching or floating a new business  enterprise. he person who has a business idea and tales steps to implement it is known as an entrepreneur or a promoter. The entrepreneur has to act both as a mother and a mid-wife because it is he who faces various difficulties to bring the new enterprise into existence and bring it up into a successful venture. That is why, business is also called a venture. The entrepreneur assembles and coordinates various factors of production, namely, human resources, machines, capital and materials to start a new enterprise and kept it running. The ultimate success of a business depends upon the entrepreneur’s skills to manage various problems with shih he is confronted while staring a new enterprise.

During the early growth stage, an entrepreneur concentrates on increasing the production and sale of existing products. He will try to achieve efficiency. reduce cost of production and take steps to win new customers and enter new markets. But at the later growth stage, the entrepreneur may go in for modernization, expansion and diversification. Creativity and innovation will play a key role in growth ad expansion.

For more help in Importance of Growth click the button below to submit your homework assignment