Definition
- Organic growth
- Organic growth is a firm expanding from within, by opening new sites, hiring staff or launching products, paid for from profits or borrowing.
Example
Can you think of an example of organic growth?
A bakery chain opens ten new shops with its own profits. It keeps full control, but the growth is slow, since each shop has to be found, fitted out and staffed.
Test yourself
Can you name the four ways a firm can grow?