Introduction to Economic Growth

Question: 1-How can growth be measure? 2- Approaches to studying growth? Economic approach Social network approach to business growth Managerial approaches 3- How do small firms grow?which is ( greiners'1972 stage growth model)? 4-Strategies to overcome growth? Answer: 1. Economic growth can measured in terms of increase in the value of the output produced by the firms in a given time frame. Growth of firms is attributed to several factors like market economy, fiscal conditions, and supply and demand. The need for the product and the intensive growth of GDP to population defines the growth of a sector or industry. Many nations though have extensive resources but the growth gets restricted due to a weak GDP. 2. Growth can be measured through many methods. Some of the prominent methods are as following: Economic approach: This method focuses on the economic methods like GDP, GNP and value of goods produced etc. This method basically tries to understand growth more from a quantitative standpoint. Social network approach: This method tries to understand the interaction between individuals and organizations. This method tries to explore the various connections and complex structure of how people and society interact with organizations and create awareness about the products and growth cycles I the long run. Managerial approach: This method tries to focuses on the growth through economic analysis and application of various econometric tools in a systematic and efficient way. 3. Greiners growth model is based on five stages. They are as follows: a. Growth through creativity b. Growth through direction c. Growth through delegation d. Growth through coordination e. Growth through alliance According to Greiner small firms need to follow these steps to promote growth in the long run. 4. Growth barriers can be overcome through strategic planning and proper allocation of resources and by efficient usage of economic tools and analysis which can make every organizations stay on the top of the world in spite of difficult situations in the business cycle. References: Jones, Charles I; 2012 Introduction to Economic Growth, W.W. Norton and Co., Second Edition, New York Romer, David; 2006 Advanced Macroeconomics: McGraw-Hill, New York