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Growth strategies for start-ups: Learning objectives and overview

Module by: Global Text Project. E-mail the authorEdited By: Dr. Donald J. McCubbrey

Summary:

Business Fundamentals was developed by the Global Text Project, which is working to create open-content electronic textbooks that are freely available on the website http://globaltext.terry.uga.edu. Distribution is also possible via paper, CD, DVD, and via this collaboration, through Connexions. The goal is to make textbooks available to the many who cannot afford them. For more information on getting involved with the Global Text Project or Connexions email us at drexel@uga.edu and dcwill@cnx.org.

Translated and reprinted with permission from Dowling/Drumm Gründungsmanagement (Entrepreneurship) Springer Verlag, 2003.

Editors: Michael Dowling, Hans Juergen Drumm (University of Regensberg)

Reviewer: Timothy B Folta (Purdue University)

Learning objectives

  • define what constitutes a growth firm
  • describe the problems of growth and growth strategies
  • describe growth mistakes and solutions

Overview

In this chapter we investigate possible strategies for the growth of start-up firms. First, we describe growth as a phenomenon and basic problem for such firms. In particular we analyze the problem from the viewpoint of new start-ups which plan from the outset to grow larger quickly. We then examine different growth strategies which firms can pursue. In the second part of the chapter we present the most well-known mistakes made by start-ups during the growth phase, and suggest ways to correct or—even better—avoid them. To conclude, we provide recommendations for how entrepreneurs can profit best from growth. In this chapter we refer most often to firms with “products” but the strategies and pitfalls reviewed here also apply to service companies.

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