[Column] Growth Trajectory of Small and Medium Enterprises 1: From Birth to Rapid Growth Period
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Humans are born and go through a growth process that includes kindergarten, elementary school, junior high school, high school, university, and adulthood. At each of these milestones, there are encounters with people, entrance exams, and graduations. Additionally, significant life events such as coming of age ceremonies and employment also occur. Similarly, companies have their own fundamental growth trajectories. ■ Birth Stage First is the birth stage. This is the period shortly after a company is established, which every company experiences. The survival rate of a company is harsher than the survival rate of humans. It is said that the survival probability of a company that has been born to survive for 10 years is 20-30%. ■ Foundation Stage Once the birth stage is over, it enters the foundation stage. This is the period when the foundation of products and customers gradually begins to take shape. ■ Rapid Growth Stage Next, the company enters the rapid growth stage. This occurs when the selection of products, industries, areas, and customers is favorable, leading to an increase in the number of customers and work, resulting in rapid growth. The increase in the number of employees does not cause rapid growth; rather, it is the increase in the amount of work that inevitably leads to an increase in the number of employees. In this way, the company experiences rapid growth.
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