Definition of a Growth Company: Growth firms are generally classified by their ability to generate positive cash flows or earnings at a significantly faster rate than the overall economy. Often these companies are associated with the technology industry and have the ability to scale their businesses rapidly. Growth companies have the ability to create their own markets or serve a larger, growing market. However, no company has positive growth forever, and without proper planning (over time) most businesses will usually undergo some level of decline. This decline can often be attributed to increased competition, outdated technology, newer innovations taking the place of old, management complacency, poor strategy and execution, and overly optimistic forecast.