Organic growth is the growth a company achieves by increasing output and enhancing sales internally. This does not include profits or growth attributable to mergers and acquisitions but rather an increase in sales and expansion through the company’s own resources.
If you see a company with consistently strong organic growth, it’s generally a sign that the firm has a solid business plan and is executing it well. However, it is often hard for a company to achieve rapid overall growth through internal operations alone. It’s also difficult for companies to quickly respond to changes in market conditions and consumer preferences.