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LESSON–10 ALTERNATIVE GROWTH STRATEGIES FOR SMALL BUSINESS
Sonia Sabharwal

STRUCTURE
10.0 10.1 10.2 10.3 10.4 10.5 10.6 Introduction Objectives Meaning of Business growth Need for growth Advantages of growth Limitations of growth Forms of growth 10.6.1 Organic growth 10.6.2 Inorganic growth Meaning of growth strategy Types of growth strategies 10.8.1 Intensive Growth strategy 10.8.2 Diversification 10.8.3 Modernization 10.8.4 Merger 10.8.5 Joint Venture Crisis in Business Growth Summary Glossary Self Assessment Questions Further Readings

10.7 10.8

10.9 10.10 10.11 10.12 10.13

10.0 INTRODUCTION
In earlier units we discussed the processes involved in the setting up of commercially viable and technically feasible small scale enterprises (SSE). We also examined the processes of finding an ideal location and layout for a SSE. In this lesson we will take a view of different alternatives available for the growth of a small scale enterprise. Business growth is a natural process of adaptation and development that occurs under favorable conditions. The growth of a business firm is similar to that of a human being who passes through the stages of infancy, childhood, adulthood and maturity. Many business firms started small and have become big through continuous growth. However, business growth is not a

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homogenous process. The rate and pattern of growth varies from firm to firm. Some firms grow at a fast rate while others grow slowly. Also, not all enterprises survive to grow big. This may be due either to the nature of the firm or the entrepreneur. Some entrepreneurs do not want to grow their ventures, choosing instead to pursue other interest, spend more time with family or develop other business activities.

10.1 OBJECTIVES
After going through the lesson you should be able to: • Explain the meaning and need for growth • Discuss the benefits and

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