Organic growth

• Internal/organic growth is when a business grows by expanding through its own activities.
• There are two different methods that businesses use to grow internally:

  • Targeting new markets (when a business aims to sell its products to people they haven’t tried to sell to before, they can use new technology to target new markets and set up branches in other locations)
  • Developing new products (to sell a new product, firms need innovation)
• organic growth positives

  • It is relatively inexpensive. 
  • The business is doing what it is already good at, so less likely to go wrong.
  • The firm grows slowly, quality is less likely to suffer and staff are trained well.
• organic growth negative

  If a business wants to grow quickly, it wouldn’t be right because it is a slow method of growth!