What does internal growth of a business refer to?

Internal growth of a business, often referred to as organic growth, involves expanding the existing operations of the company using its own resources. This can encompass a variety of activities, such as increasing production capacity, improving operational efficiency, or enhancing sales through better marketing strategies. The focus is on utilizing the company's inherent capabilities and resources to achieve growth, rather than relying on external avenues such as mergers or acquisitions.

While acquiring another company is an example of external growth, and diversifying into new markets or increasing the number of products can both involve a mix of internal and external strategies, the essence of internal growth is about building upon what the business already does. By expanding its existing operations, a business can strengthen its market position, boost revenue, and create a more sustainable growth path.