Generally, the term ‘business growth’ is used to convey various things such as rise in the total sales volume per annum, an increase in the production capacity, an increase in physical output, an increase in capital employed, an increase in employment and an increase in raw materials and power used. These factors are in fact, indicators of growth. They do not provide a specific meaning of growth. Business growth means an increase  in scale of operations and resources of a firm usually accompanied by increase in its size.

Some people use the terms ‘growth’ and ‘size’ interchangeably. But these terms are not identical. Increase in size does not always mean growth. In fact, size is ones of the outcomes of growth. For example, if an industrial firm with 200 employees adds another 20 employees to its work-force, it does not mean that the firm has necessarily grown. There may not be any increase in production because of decrease in the productivity of the workers due to certain resource. However, if the new employees are placed in some new type of operations of new machinery and equipment resulting in higher production, it can be concluded that some growth has occurred. It may be noted that it is easy to measure the size of a business firm. The indicators of size may also be used as indictors of scale of operations and resources of a firm.

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