Sustainable Growth

Kahraman, Serpil

doi:10.1007/978-3-030-02006-4_552-1

Serpil Kahraman⁷

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Synonyms

Growth

Definition

The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to finance growth with additional equity or debt. The SGR involves maximizing sales and revenue growth without increasing financial leverage. In a firm level, a sustainable rate of growth is the maximum growth rate that a firm is able to maintain without raising the fund flow. For a small company owner, the rate is how much more money he can collect each year without investing his own money or borrowing from the bank. Both small and big business owners should calculate their sustainable rate of growth to determine whether their capital is adequate to meet their strategic needs for growth (Higgins 1981).

Sustainable economic growth means a rate of growth that can be maintained, especially for future generations, without causing other important economic problems. There is a compromise between current rapid economic growth and future growth. Today, rapid...

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References

Alberola, E., Estrada, A., & Santabarbara, D. (2013). Growth beyond imbalances, sustainable growth rates and output gap reassessment. Documentos de Trabajo. No. 1313. Banco de Espana. Eurosistema.
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Authors and Affiliations

Department of Economics, Yasar University, Bornova, Turkey
Serpil Kahraman

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Serpil Kahraman
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Correspondence to Serpil Kahraman .

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Editors and Affiliations

London Metropolitan University, Guildhall Faculty of Business and Law London Metropolitan University, London, UK
Samuel Idowu
Cologne Business School, Ingolstadt, Germany
René Schmidpeter
College of Business, Loyola University New Orleans, New Orleans, LA, USA
Nicholas Capaldi
International Training Centre of the IL, International Labor Organization, Turin, Italy
Liangrong Zu
Department of Economics, Society and Politics, University of Urbino Carlo Bo, Urbino, Italy
Mara Del Baldo
Instituto Politécnico da Guarda, Guarda, Portugal
Rute Abreu

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Yasar University, Izmir, Turkey
Duygu Türker

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Kahraman, S. (2020). Sustainable Growth. In: Idowu, S., Schmidpeter, R., Capaldi, N., Zu, L., Del Baldo, M., Abreu, R. (eds) Encyclopedia of Sustainable Management. Springer, Cham. https://doi.org/10.1007/978-3-030-02006-4_552-1

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DOI: https://doi.org/10.1007/978-3-030-02006-4_552-1
Received: 12 September 2019
Accepted: 12 June 2020
Published: 30 July 2020
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-02006-4
Online ISBN: 978-3-030-02006-4
eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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