[1][2] This kind of growth also takes place due to government directives, leading to enhancement of business in some identified priority sector/area.
The inorganic growth rate also factors in the impact of foreign exchange movements or performance of other economies.
It is also a faster way for companies to grow compared with organic growth (where the main focus is productivity enhancement and cost reduction).
Several risks are introduced by this method of inorganic growth – a clash in company cultures and the risk of losing customers are some of the main issues.
In contrast, with organic growth, a business has better control over its growth by planning and deploying more easily accessible internal resources [3] This term is usually related with financial sectors showing expanding business and profits.