How to grow a business:
Drawbacks of growth
Kimberly Tsunda
What are the
drawbacks of
growth?
 For better understanding I am going to start by
breaking down the words in this question to
get a better understanding of this question.
1. Drawback- a disadvantage or problem.
2. Growth- development; gradual increase.
Drawbacks of growth
•
•
Larger businesses tend to be more complex than smaller businesses. Some of the common disadvantages of business expansions are:
Shortage of cash - you may need to borrow money to meet expansion costs, eg buy new premises or equipment
•
Compromised quality- increasing your production output may lead to a decline in quality, which can lead to loss of customers or sales
•
Loss of control - as your business grows, you may need to delegate management duties or divide the workloads between different
locations
•
Increased capital requirement - a larger business means a larger workforce, more facilities or equipment, and more investment
•
Increased staff turn over- for example, if staff are given extra work, their morale could drop, their productivity could decrease or they
could leave your business