Class XII | Subject Entrepreneurship

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• Growth is always essential for the existence of a business concern. A concern is bound to die if it does not try to expand its activities
• Rule of thumb for Growth and Expansion
• The rule of thumb is that
• (i) one should only expand when there are untapped opportunities that can benefit the business
• (ii) There may be A  niche that you want to capture  or A  location not serviced even by your competitors.
• Expansion is often one of the most daunting challenges a successful business will face
• Dual role of an entrepreneur in growth and Expansion
• An entrepreneur has a dual role to play- one, that of a leader and the other of a manager.
• (1) As a leader an entrepreneur provides direction and energy
• (2) while as a manager, an entrepreneur processes the input and gives the output
• Ways/Types of Expansion and Growth:
• The expansion of a concern may be in the activities or acquisition of ownership and control of other concerns. Thus, expansion may be:

1. a) Internal Expansion
2. b) External Expansion

• Internal Expansion: ——————————-