‘Every Business Should Grow at 18–20% Annually, or There’s a Problem’: Sarthak Ahuja| Republic Business Leadership Conclave
By Avishek Banerjee
Copyright republicworld
At the Republic Business Leadership Conclave, investment banker, educator, and bestselling author laid out a pragmatic framework for Indian entrepreneurs to scale sustainably in a rapidly evolving economy. Drawing on over a decade of experience in startup advisory and capital markets, Ahuja highlighted the critical balance between ambition, disciplined execution, and measurable growth strategies.He stressed that founders must benchmark their business growth against India’s broader economic trajectory. “If India is growing at 6% annually, you want to be in an industry expanding at 1.25 to 2 times that rate. For smaller players, this translates into 18–20% annual growth. Every business should ideally grow at this rate, or there’s a problem,” he said, framing it as the standard for entrepreneurial health.Ahuja outlined the dual role of a CEO in driving growth. First, taking personal responsibility for sales, which he described as the lifeblood of any venture. “Sales solve over half your problems—they bring money, enable hiring, and fund new technology adoption,” he noted. Second, focusing on development, including new product launches, market expansion, R&D, and learning initiatives, which provide the engine for long-term growth.Also Read: ‘Innovation and Agility Are the True Drivers of Growth’: Sahil Chalana and Gautam Kapoor| Republic Business Leadership Conclave | Republic WorldHighlighting India’s innovation gap, he compared the country to China, which filed 1.7 million patents in 2023 compared to India’s 90,000. Moreover, India’s R&D spending remains at just 0.6% of GDP, with private enterprises contributing only about 35–36%—well below global benchmarks where private players contribute around 70%. “Our absolute R&D spend is rising, but as a percentage of GDP, it’s declining. The private sector must step up if we want to compete globally,” he cautioned.Beyond diagnostics, Ahuja shared practical strategies for entrepreneurs: leveraging fractional CFO services for efficient fundraising, exploring export-oriented business models targeting markets such as the UAE, and mastering valuations and term sheets to build resilient consumer brands.Referencing his bestselling book Founder’s Office: 150+ Impactful Lessons, he urged founders to prioritize ethical scaling, AI-driven efficiency, and inclusive growth