It’s not just shareholders, I mean that’s a huge part why public corporations endlessly seek growth. But, even private corporations are beholden to capitalism’s inherent growth imperative.
The only way to maintain solvency is to grow. Without growth you can’t save, and if you can’t save, you can’t accumulate investment capital. Which basically means your corporation is stuck in stagnation and is being eaten alive by interest rates.
If you aren’t investing back into your company as much as your competitors then they will eventually push you out of the market. It’s called the Growth imperative .
It’s not just shareholders, I mean that’s a huge part why public corporations endlessly seek growth. But, even private corporations are beholden to capitalism’s inherent growth imperative.
The only way to maintain solvency is to grow. Without growth you can’t save, and if you can’t save, you can’t accumulate investment capital. Which basically means your corporation is stuck in stagnation and is being eaten alive by interest rates.
What? Why? If I’m making a million dollars profit a year, why can’t I just put it in a bank account or ETFs or whatever every year?
If you aren’t investing back into your company as much as your competitors then they will eventually push you out of the market. It’s called the Growth imperative .