Why might a new business seek to grow?

Question

Quizplus · Accepted Answer

A new business might seek to grow in order to achieve economies of scale, which can result in cost savings and increased profitability. Additionally, growth can lead to market leadership, which can provide the business with a competitive advantage and increased bargaining power. Finally, growth can allow a business to develop a scalable business model, which can support further expansion and long-term success. All three reasons (economies of scale, market leadership, and a scalable business model) are important factors that may motivate a new business to seek growth.

Why Might a New Business Seek to Grow