Inorganic growth is the rate of growth of business, sales expansion etc. by increasing output and business reach by acquiring new businesses by way of mergers, acquisitions and take-overs. This kind of growth also takes place due to government directives, leading to enhancement of business in some identified priority sector/area. The inorganic growth rate also factors in the impact of foreign exchange movements or performance of other economies.
As opposed to the organic growth, this kind of growth is affected to a great extent by exogeneous factors. It is also a faster way for companies to grow compared with organic growth (where the main focus is productivity enhancement and cost reduction).
This term is usually related with financial sectors showing expanding business and profits.
Famous quotes containing the words inorganic and/or growth:
“Man, unlike anything organic or inorganic in the universe, grows beyond his work, walks up the stairs of his concepts, emerges ahead of his accomplishments.”
—John Steinbeck (1902–1968)
“Cities force growth and make men talkative and entertaining, but they make them artificial. What possesses interest for us is the natural of each, his constitutional excellence. This is forever a surprise, engaging and lovely; we cannot be satiated with knowing it, and about it; and it is this which the conversation with Nature cherishes and guards.”
—Ralph Waldo Emerson (1803–1882)