Growth Strategy and Institutional Support

Growth Strategy Report: Strategies for Achieving Business

What is Growth Strategy and what they are?

• Growth strategies are strategies that businesses use to increase their revenue and market share. 
• They involve taking measures to expand a company's current customer base and increase its profits. 
• These strategies can include introducing new products or services, expanding into new markets, and increasing marketing efforts. 
• Additionally, businesses may use pricing strategies, mergers and acquisitions, and strategic partnerships to strengthen their competitive position in the market.

Growth Strategy for small business:

• Small businesses can use a variety of growth strategies to increase their revenue and market share. 
• These strategies can include expanding their customer base, introducing new products or services, and increasing marketing efforts.
• Additionally, businesses can focus on developing a strong brand identity, leveraging social media, and optimizing their website to increase their visibility and grow their customer base.

Need for growth Strategy for small business:

• Growth strategies are essential for small businesses in order to increase their revenue and market share. 
• By taking measures to expand their customer base and increase their profits, small businesses can stay competitive in their industry and remain profitable. 
• Additionally, growth strategies can help small businesses increase their visibility, as well as establish a strong brand identity. 
• Growth strategies are also important for small businesses as they allow them to stay ahead of the competition and remain relevant in their industry.

Explain Types of growth strategy followed by small businesses:

1. Market Penetration: This involves increasing the market share of existing products or services within the same market. This strategy is often used when the company believes that its current products or services are under-utilized or that it can increase its market share by increasing its promotional activities.
2. Product Development: This involves creating new products or services to meet the needs of the existing market. This strategy is often used when the company believes that its current products or services can be improved or that they could be adapted to meet the needs of a new market. 
3. Market Development: This involves expanding into new markets with existing products or services. This strategy is often used when the company believes that its current products or services can be marketed successfully to a new market. 
4. Diversification: This involves developing new products or services for new markets. This strategy is often used when the company believes that its current products or services can be adapted to meet the needs of a new market or when the company wants to diversify its portfolio of products or services. 
5. Acquisition: This involves acquiring other businesses in order to gain access to new markets or products. This strategy is often used when the company believes that it can benefit from the expertise or resources of an existing business..

What is concept of Expansion, Diversification and Sub contracting?

Expansion: Expansion involves taking measures to increase a company's current customer base and profits by introducing new products or services, expanding into new markets, and increasing marketing efforts. 

Diversification: Diversification is a growth strategy that involves expanding a business’s operations into new markets or industries. It can involve introducing new products or services, entering new geographic markets, or expanding into new types of businesses. 

Subcontracting: Subcontracting is a growth strategy in which a company contracts with another company to provide goods or services that it would otherwise have to produce or provide itself. It can involve outsourcing production, services, technology, or personnel.

Incentives and subsidies Central and State Government schemes

• Incentives and subsidies provided by the central and state government to encourage businesses to invest and grow. 
• These can include tax incentives, grants, loan guarantees, and other forms of financial assistance. 
• They are designed to help businesses increase their profits, create jobs, and stimulate the economy. 
• Additionally, some central and state governments offer special programs such as tax credits and direct payments to businesses that meet certain criteria.

Incentives & Subsidies:

• Government provides many types of incentives to entrepreneurs. 
• These incentives help to increase productivity. 
• It acts as a motivating force for the entrepreneur. 
• These incentives are categorized as concession, subsidies and bounties. 

• Subsidies are a one time lump sum amount given to the entrepreneur by the government. 
• It is a financial help to cover the cost. 
• Bounty is a financial help provided to an industry so that it can compete with other units of the country as well as any foreign industry in the same business.

Schemes of State Governments:

All the state governments also provide technical and other support services to small enterprises through their directorate of industries and district industries centre. In general all the state governments extend support of following types.

• Deferment/ suspension of sales tax.
• Power subsidy
• Capital investment subsidies to new enterprises established in some selected districts.
• Margin money/seed capital assistance schemes.
• Priority in providing power connection/water connection.
• Technical and consultancy support.