Comment on Why do companies always need to grow?
LegoBrickOnFire@lemmy.world 1 week ago
I guess it’s mostly because companies that don’t try to grow are eventually pushed into irrelevance by companies that do. So most companies you hear about are growth oriented.
In some sense it can be good for consumers. If you have a nice idea for consumers, it’s good that you are able to reach more of them or become more efficient in doing so.
Also, to start a business you need money. You can get money from investors, but they expect either interests on the loan, or that you grow so that their share is worth more. The latter is attractive, because you don’t have to pay interests that can weigh your company down. But then the value of your company is almost defined by it’s potential for growth. If you then decide not to grow anymore, this will tank the value of the company, and you might be stuck with a huge pile of stinking debt.