CRITERIA FOR IDENTIFICATION OF BUSINESS GROWTH

Abstract

The article intends to provide an overview on the key points of definition the essence and criteria for identification of business growth. Withing the research it was defined that business growth is directly related to changes in the business environment and assessed as a positive dynamics of the company's performance. In the scientific literature determined several approaches to substantiating the criteria for identifying business growth and the critical analysis, generalization of which is the main objective of this study. One of the most common approaches is to consider company growth as a quantitative factors of development. Its key criteria are sales value, profits and assets. Scientists distinguish between the concepts of "economic growth" and "growth of economic results", emphasizing that the latter can be achieved due to the lack of positive dynamics of qualitative changes in a business organization. Accordingly, the debate on whether the positive dynamics of key economic results is an economic growth remains open and requires further research. Also, the qualitative aspect of business growth has recently gained relevance among scholars, which significantly expands the research space and the base of criteria for its identification. The introduction of the qualitative component prioritized the criteria for identification of growth based on economic value, which explains the organizational aspects of business growth in the categories of utility, significance and value dimensions. In this aspect, the problem of identifying growth is actualized not only in the economic, but also in other prospective of business (social, technological, cultural, organizational, etc.). The authors conclude that such a research focus determines the study of business growth in an organic combination of target models, the dynamics of the consequences of which serve as the basis for the appropriate identification. In such a substantive formulation, a value-based approach is a promising direction for defining and identification of business growth, which allows for a meaningful connection between the goals, the object of growth and the means of ensuring it. In such correlation of the criteria for identification of growth and their prioritization for a particular business organization become more related to specific situations, time frames and stages of the life cycle of a company, market, industry, etc. The results of the study can be useful for managers and entrepreneurs in solving the problems of substantiating reliable and significant informative criteria for identifying business growth.