In: Economics
Explain the size-related paradox that companies face not less than 300 words .
Every company when they start growing in size they become risk averse and they will try to play safe because the larger the size of the organization the accountability of that organization will also increase. If the organization is large it will become accountable to public, share holders , employees , customers and promoters. If the organization is small in size it will try to take risk and be more innovative as it want to earn profits and make itself a big thing in the market.
If the organization is large they wanted to play a safe game so that they don't loose their profits or share in the market. So this will lead the organization to stop being innovative and try to follow the same old techniques which they made them succed in the market. Most of the small business will try to take challenges as they will be in a condition like do or die where these large organization they won't take any new challenges but will try to bring money to its share and stake holders.
So this is how size of an organization is creating paradox.