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Factors demanding growth finance. John Maynard Keynes’ ‘rising tide’ model - Business survival depends on the formula:. ‘Performance = scale of profit ÷ by inflation + the dominant trend in cost of living’. . Factors demanding growth finance.
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Factors demanding growth finance • John Maynard Keynes’ ‘rising tide’ model - • Business survival depends on the formula: ‘Performance=scale of profit ÷ by inflation + the dominant trend in cost of living’.
Factors demanding growth finance • As a global average, according to Dun & Bradstreet, the cost of living rises by 54 per cent every decade. • So any business has a clear choice: • grow or go bust. • You actually have to doubleyour profitability every 10 years just to stay where you are.
Factors demanding growth finance • Figures from the Official Receiver’s Office in the UK show that of all the businesses that go into receivership, 38% of them collapse in years 6-9. • That’s actually more than the number • that go under in the first year.