Theme 3

• Growth can mean more sales and profit, but some firms might lack the finance to expand.
• Growth means more market power, higher prices and more profit, but regulations can prevent firms from growing too big because of concerns over consumer exploitation.
• Growth can help a firm diversify and enjoy risk-bearing economies, but some firms are in a niche market and others might need to stay small to offer a personalised service.
• Growth can help firms exploit other economies of scale, but firms might be worried about diseconomies of scale.
• Ambitious owners might want to grow their firms to satisfy their dreams of running a powerful company, but other owners might want to profit-satisfice, and enjoy a quiet life running a small firm.