– The term growth means that the company significantly increases output in response to an increase in demand or an expected increase in the near future.#

  • Start-up companies also gain momentum after they leave the prototype stage and start regular production for the market.
  • Large companies can also ramp up production when they introduce new products or enter a new market.
  • Scaling up is costly and requires large capital investments in equipment and capacity. If demand is not maintained or is lower than expected, the firm may be left with excess capacity.
  • Sometimes companies can curtail activities, but they rarely say so.