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Exponential Business Growth


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In today’s capitalistic economy, every business needs to grow. A business can die if it is not growing fast enough. The main risk is that the competitors of the business will grow faster and there won’t be much business activity left for the ones which are not growing.

Now, a business can grow in many different ways. It can find more customers for its current products and services, it can develop new products or services, it can find or invent new markets and it can be more efficient in what it is doing.
One of the main questions is how fast does the business grow. Business growth is dependent on several parameters. Every business depends on different set of parameters. In economics, one can define abstract parameters which will be relevant for many kinds of businesses. For example, we can look at the supply and demand curves in a given market. These parameters are relevant for every business growth in that market.

One of the most effective kinds of business growth is an exponential business growth. Exponential business growth happens when the value of a business grows with an exponential function for certain important parameters. For example, lets take a startup which invented a new microscope which is cheap and powerful. The value of its business will go up exponentially in the number of applications which can use this microscope, since every such application will create a whole new market with more opportunities for more revenue.
The most powerful exponential business engine today is the Internet and the Web. This is the most exciting arena for exponential business growth. There are many new buzzwords which describe these exponential phenomena. All the “X 2.0” buzzwords actually describe exponential phenomena. Like the good old Web 2.0, and today we have Enterprise 2.0, Business2.0 and a whole lot of Something 2.0. All these ideas use the network as their engine of value, which can give an exponential growth.

A new wave of related buzzwords are of the form “crowdX”. The main buzzword, Crowdsourcing, was invented in 2006 by Jeff Howe. The idea is to use the wisdom of the crowds in order to do business tasks. Other buzzwords in this family include: Crowdcapital, Crowdcreation and Crowdvoting. The idea here is to get value from an intelligent crowd. An intelligent crowd is either comprised of intelligent agents or creates intelligence out of less intelligent agents.

In summary, the scale and connectedness of the Internet is giving rise to an amazing exponential business growth. This trend will only intensify as more and more businesses are beginning to use the Web and more and more industries find the Internet as the most cost effective platform for their business activities.

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