Organic growth (Internal Growth) – Expansion of an operation using its own resources as opposed to borrowed money or via acquiring other operations. This can be achieved through:
- Increasing existing capacity.
- Development and launch of new products and services.
- Finding and opening up of new markets.
- Growing a customer base through improved or increased marketing.
Non Organic growth – Growing the business through borrowing or through acquiring/merging with other companies. The advantages can include:
- Speed of access to new products or market segments.
- Increasing market share and increasing marketing power.
- Potential to improve economies of scale.
- Enter new segments of an existing market quickly.
Organic growth on the whole tends be slower and safer as opposed to non organic growth which tends to be faster and riskier.