visual representation of growth

Search Search Please fill out this field.

What Is a Growth Curve?

Understanding a growth curve, the bottom line.

Business Leaders
Math and Statistics

Growth Curve: Definition, How It's Used, and Example

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A growth curve is a graphical representation how how something changes over time. An example of a growth curve might be a chart showing a country's population increase over time.

Growth curves are widely used in statistics to determine patterns of growth over time of a quantity—be it linear, exponential, or cubic. Businesses use growth curves to track or predict many factors, including future sales .

Key Takeaways

A growth curve shows the direction of some phenomena over time, in the past or into the future, or both.
Growth curves are typically displayed on a set of axes where the x-axis is time and the y-axis shows an amount of growth.
Growth curves are used in a variety of applications from population biology and ecology to finance and economics.
Growth curves allow for the monitoring of change over time and what variables may cause this change. Businesses and investors can adjust strategies depending on the growth curve.

The shape of a growth curve can make a big difference when a business determines whether to launch a new product or enter a new market . Slow growth markets are less likely to be appealing because there is less room for profit. Exponential growth is generally positive but could mean that the market will attract a lot of competitors.

Growth curves were initially used in the physical sciences such as biology. Today, they're a common component of social sciences as well.

Digital Enhancements

Advancements in digital technologies and business models now require analysts to account for growth patterns unique to the modern economy. For example, the winner-take-all phenomenon is a fairly recent development brought on by companies such as Amazon, Google, and Apple . Researchers are scrambling to make sense of growth curves that are unique to new business models and platforms.

Growth curves are often associated with biology, allowing biologists to study organisms and how these organisms behave in a specific environment and the changes to that environment in a controlled setting.

Shifts in demographics, the nature of work, and artificial intelligence will further strain conventional ways of analyzing growth curves or trends.

Analysis of growth curves plays an essential role in determining the future success of products, markets, and societies, both at the micro and macro levels.

Example of a Growth Curve

In the image below, the growth curve displayed represents the growth of a population in millions over a span of decades. The shape of this growth curve indicates exponential growth. That is, the growth curve starts slowly, remains nearly flat for some time, and then curves sharply upwards, appearing almost vertical.

This curve follows the general formula:

V = S * (1 + R) t

The current value, V, of an initial starting point subject to exponential growth, can be determined by multiplying the starting value, S, by the sum of one plus the rate of interest, R, raised to the power of t, or the number of periods that have elapsed.

In finance, exponential growth appears most commonly in the context of compound interest.

The power of compounding is one of the most powerful forces in finance. This concept allows investors to create large sums with little initial capital. Savings accounts that carry a compounding interest rate are common examples.

What Are the 2 Types of Growth Curves?

The two types of growth curves are exponential growth curves and logarithmic growth curves. In an exponential growth curve, the slope grows greater and greater as time moves along. In a logarithmic growth curve, the slope grows sharply, and then over time the slope declines until it becomes flat.

Why Use a Growth Curve?

Growth curves are a helpful visual representation of change over time. Growth curves can be used to understand a variety of changes over time, such as developmental and economic. They allow for the understanding of the effect of policies or treatments.

What Is a Business Growth Model?

A business growth model provides a visual representation for businesses to track various metrics and key drivers, allowing businesses to map out growth and adjust the businesses accordingly to foster these metrics.

A growth curve is a graph that represents the way a phenomenon changes over time. It can show both the past and the future. They typically use two axes, where the x-axis is time and the y-axis is growth.

Growth curves are used in many disciplines, including sciences such as biology and ecology. They are also used in finance and economics. Businesses can use growth curves to see how a specific market is changing over time. This can help them decide whether to enter or leave a certain market or adjust their selling strategy to account for changes.

Curran, Patrick J., Obeidat, Khawla, and Losardo, Diane, via National Library of Medicine. " Twelve Frequently Asked Questions About Growth Curve Modeling: Abstract ." Journal of Cognition and Development , vol. 11, no. 2, 2010.

Sigirli, Deniz and Ercan, Ilker. " Examining Growth with Statistical Shape Analysis and Comparison of Growth Models ." Journal of Modern Applied Statistical Methods , vol. 11, no. 2, November 2012, pp. 1.

Terms of Service
Editorial Policy
Privacy Policy
Your Privacy Choices

All Subjects

study guides for every class

That actually explain what's on your next test, visual representation of growth, from class:.

A visual representation of growth refers to the depiction of a character's evolution over time, often through changes in behavior, relationships, and circumstances throughout a series. This concept highlights how characters can develop emotionally, mentally, and socially, creating a dynamic narrative that engages viewers. The ability to visualize this growth helps audiences connect with characters and understand their journeys as they face challenges and transformations.

congrats on reading the definition of visual representation of growth . now let's actually learn it.

5 Must Know Facts For Your Next Test

Visual representations of growth can be shown through character relationships, such as how friendships or rivalries evolve over time.
Changes in a character's physical appearance or demeanor can serve as indicators of their internal growth or transformation.
Key plot points often align with significant moments in a character's development, illustrating the direct impact of experiences on their growth.
Flashbacks or recurring motifs can help reinforce the visual representation of growth by contrasting a character's past with their current state.
The way characters respond to challenges typically demonstrates their growth, showing how they've changed from previous seasons.

Review Questions

The visual representation of growth enhances audience engagement by allowing viewers to witness a character's evolution in real-time. As characters face challenges and develop new traits, audiences become invested in their journeys. This dynamic creates emotional connections, making the story more relatable and compelling as viewers see how characters navigate obstacles and change over time.
Changes in a character's relationships can serve as powerful visual representations of growth by illustrating how their interactions evolve. For instance, a character who begins as an antagonist may become an ally, showcasing their development. These shifts highlight the complexity of character arcs and emphasize how personal growth impacts connections with others, creating deeper narratives.
Different storytelling techniques such as flashbacks, dialogue shifts, and physical transformations effectively portray visual representations of growth. Flashbacks provide context for present actions by showing past struggles, while shifts in dialogue can indicate changes in perspective. Physical transformations can visually signal character development. The effectiveness lies in how these techniques create a cohesive narrative that highlights the character's journey and engages viewers emotionally throughout multiple seasons.

Related terms

The journey a character undergoes throughout a story, involving internal changes or growth as they confront conflicts and challenges.

Motivation : The driving force behind a character's actions and decisions, often influencing their development and the trajectory of their growth.

Conflict : The struggle between opposing forces that propels the narrative forward and acts as a catalyst for character development.

" Visual representation of growth " also found in:

Subjects ( 1 ).

Storytelling for Film and Television

Ap® and sat® are trademarks registered by the college board, which is not affiliated with, and does not endorse this website..

SUGGESTED TOPICS
The Magazine
Newsletters
Managing Yourself
Managing Teams
Work-life Balance
The Big Idea
Data & Visuals
Case Selections
HBR Learning
Topic Feeds
Account Settings
Email Preferences

Visualizations That Really Work

Scott Berinato

Not long ago, the ability to create smart data visualizations (or dataviz) was a nice-to-have skill for design- and data-minded managers. But now it’s a must-have skill for all managers, because it’s often the only way to make sense of the work they do. Decision making increasingly relies on data, which arrives with such overwhelming velocity, and in such volume, that some level of abstraction is crucial. Thanks to the internet and a growing number of affordable tools, visualization is accessible for everyone—but that convenience can lead to charts that are merely adequate or even ineffective.

By answering just two questions, Berinato writes, you can set yourself up to succeed: Is the information conceptual or data-driven? and Am I declaring something or exploring something? He leads readers through a simple process of identifying which of the four types of visualization they might use to achieve their goals most effectively: idea illustration, idea generation, visual discovery, or everyday dataviz.

This article is adapted from the author’s just-published book, Good Charts: The HBR Guide to Making Smarter, More Persuasive Data Visualizations.

Know what message you’re trying to communicate before you get down in the weeds.

Idea in Brief

Knowledge workers need greater visual literacy than they used to, because so much data—and so many ideas—are now presented graphically. But few of us have been taught data-visualization skills.

Tools Are Fine…

Inexpensive tools allow anyone to perform simple tasks such as importing spreadsheet data into a bar chart. But that means it’s easy to create terrible charts. Visualization can be so much more: It’s an agile, powerful way to explore ideas and communicate information.

…But Strategy Is Key

Don’t jump straight to execution. Instead, first think about what you’re representing—ideas or data? Then consider your purpose: Do you want to inform, persuade, or explore? The answers will suggest what tools and resources you need.

Not long ago, the ability to create smart data visualizations, or dataviz, was a nice-to-have skill. For the most part, it benefited design- and data-minded managers who made a deliberate decision to invest in acquiring it. That’s changed. Now visual communication is a must-have skill for all managers, because more and more often, it’s the only way to make sense of the work they do.

Scott Berinato is a senior editor at Harvard Business Review and the author of Good Charts Workbook: Tips Tools, and Exercises for Making Better Data Visualizations and Good Charts: The HBR Guide to Making Smarter, More Persuasive Data Visualizations .