The Advantages of Substantive Growth in Business Strategies

Written by casey reader
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The Advantages of Substantive Growth in Business Strategies
Substantive growth is important in any business strategy. (strategy - chess image by rlat from

In any business strategy, growth is a key goal. This may seem like an obvious fact, but the benefits of growth are worth exploring to understand exactly how businesses work. Achieving truly substantive growth in your business strategy can make up for many other deficiencies. While there is such a thing as too much growth in too small of an amount of time, substantive growth does have key advantages.

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Exponential Growth

Perhaps the greatest advantage of achieving substantive growth in a business is the fact that it will very likely lead to more growth in the future. Wealth tends to grow exponentially. Using the added funds from growth in the present to fund project leads to even greater potential wealth gains in the future. When constructing a business strategy, the role of substantive growth in the funding of future growth is a key and welcome consideration.


In any business strategy one of the first factors to be considered is the strength and strategy of the competition. Achieving immediate substantive growth is an excellent way to ensure success against your competition. Using the added wealth from substantive growth, a business can fund further projects to gain market share from competitors. If a business is achieving substantive growth, it will know that it is gaining on its competition.

Wealth Creation

When looking at a business from a larger societal perspective, the achievement of substantive growth is the major justification for its existence. Through the achievement of substantive growth a business not only enriches its owners and employees, it increases the wealth in the society at large. Private businesses are most useful to society as the creators of the private wealth that raises living standards and leads to a better life for individual citizens.


In any business strategy a key concern will be deciding which goals will be given which level of priority. A business must consider what its key priorities will be. This is a part of the rational process of planning. Substantive growth provides a key advantage to business strategists in making their steps clear. Goals can be prioritised based on the extent to which they will achieve substantive growth and how long this will exactly take.

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