Is growth an option? When I took over the management of Intercoil in 1999, the company was a 25-year old business with stagnant sales and declining market share.

I strongly believed then — and continue to do so — that growth wasn’t just a metric for success, it was imperative for survival too. Over the last 15 years, we have doubled in size every five years, and that’s a vital success metric for a flourishing business, according to Robert Bloom in his book ‘The Inside Advantage’.

Bloom starts his book with ‘Grow or die ...’, a powerful statement that most (if not all) entrepreneurs will relate to and most likely agree with. He elaborates by explaining that businesses cannot be sustained in today’s intensely competitive global marketplace without growth.

My definition of growth isn’t limited though to sales; a business has to grow in several directions for it to sustain growth and development. Growing the number of revenue streams, product mix, customer segments, geographical locations, and, most importantly, human talent will not only lead to higher revenue but will also build a stronger business model that can withstand downturns and dynamically adapt to new market trends and changes in the business environment.

Further, growing the turnover without growing the bottom-line will endanger the sheer existence of the business.

Now, based on this definition, we can attempt to answer the question “Is growth an option?” At different stages of success of a business, an entrepreneur or a business leader might deliberate on the option of not growing further and maintaining the business at its current size. This might be driven by content with what he/she has achieved; partners or investors may be unwilling to reinvest profits/inject further funds in the business, or a fear of failure.

No matter what factors are driving the contemplation of this option, key questions to be considered and answered before making such a decision are “Can we afford not growing?” and “What will happen if we don’t grow?”.

Personally, my answer to these questions whenever I’ve pondered on the option of not growing was in the negative. If you examine the relationship of any business with all its stakeholders, the potential of growth of these relationships is directly proportional to the growth of the organisation. Taking Intercoil as an example, comparing the quantity and quality of business partners attending our 40th anniversary event to the ones who have attended our 30th Anniversary event is an obvious indication of not only business success but also the importance of growth.

We also are proud to have business partners, especially customers, who have attended both events and our partnership have grown over the years based on mutual benefits. However, had we not grown to meet the growing and continuously changing demands of these partners, we would have lost them. When it comes to human talent, a company that isn’t growing cannot retain performing employees since it’s unable to offer them opportunities for career growth. And successful professionals look beyond compensation and benefits in building their career.

Another important risk of not growing is losing market share to new entrants, or due to recession and other unfavourable market conditions. Finally, declining profits is another highly probable outcome for choosing not to grow due to inflation and market forces. We have to remember that the opposite of growing isn’t status quo — it’s shrinking.

On the other hand, growth will enable businesses to prosper, challenging its leadership and management to continually develop, innovate products and services, improve processes, and build stronger partnerships with all stakeholders. Another important and more tangible reason for growth is the long-term value of the company, as growth is a major ingredient in the valuation of any business. Investors want to buy growing companies, and pay a premium for them.

Entrepreneurs are driven by a relentless passion to grow, overcome challenges, and achieve goals that no one else has dared to achieve before, challenging the status quo as they do. Entrepreneurs strive to grow personally and professionally, and it’s through learning that entrepreneurs continually grow.

I strongly believe that the moment an entrepreneur stops learning, he becomes complacent, and similarly, the moment a business stops growing, the business becomes complacent. And complacency is the beginning of the end.

The writer is the Managing Director of Intercoil International and Strategic Alliances Director at Entrepreneur Organisation UAE.