Can Your Business Grow?

Recent estimates suggest the global rate of economic growth is more likely to be around 2% rather than 4%, which presents challenges for individuals, companies and countries around the world. 

In recent decades, the economy depended on strong levels of economic growth to provide the sales needed by companies and the jobs wanted by governments.

But in the current low/no growth environment, already referred to as the ‘new normal’, how can businesses grow and create the jobs needed to rebuild the economy.

There is no easy answer and although the new normal of low/no growth may be the new reality there are some areas that give cause for optimism.

These include the development of infrastructure projects, support for export growth and the promotion of enterprise and entrepreneurship.

Government is trying to stimulate growth through the development of infrastructure projects in a variety of areas.

Large infrastructure projects create growth through initial investment and afterwards by making it easier for people and businesses to operate.

Given that small and medium sized businesses contribute significantly to the economy through the creation of jobs, they represent an area of potential export growth.

The key issues that determine the export growth of small businesses include their willingness to invest and the skills and experience of management.

The promotion and encouragement of enterprise and entrepreneurship can play a key role in the growth of the economy and the creation of jobs.

This is particularly the case in the current climate where the spirit of enterprise and the characteristics of entrepreneurs are needed in both large and small companies.

There is no doubt we are in a low/no growth economy and struggling with the challenges raised by such a difficult environment.

There is little appetite amongst companies to grow for growth’s sake, as managers focus on productivity and innovation to reduce costs and increase profits.

There is no single, simple answer to the problem and so individuals, companies and governments have to be more enterprising to succeed.

SO, if we accept that a low/no growth economy is the ‘new normal’ we must also accept the need to change our thinking about traditional growth models.

What do you think? Can your business grow? Get in touch, we would love to hear your views contact Nick on 028 8224 9494 or via Twitter @nick_oec.