Countries that have economic growth in the private sector will definitely be helped more and will slowly become more advanced because everyone in the country is no longer completely dependent on the government. Because they can work alone to make ends meet and to build their own future by continuing to work every day on what they are able to do in the field they have mastered. And I personally am actually quite happy if there are many citizens who are willing to work freelance without any ties to the government so that the government can focus on organizing the country's development and the infrastructure needed by its own citizens.
I would say that it depends on how you do it. If you make your companies grow by making everyone else poorer, then you are not going to get a good nation. Look at Amazon for the greatest example, a lot of the warehouse workers Amazon have make less than 40k, which is suitable to get welfare, small amount of course but still they are eligible to get a tiny more amount to make it 40k total. So if Amazon hires someone for 38k, then government pays 2k a year to that person. Not a rare situation, but not majority of their workers neither, most make 40k+ in many states, but it is not unheard of.
If we are talking that type of growth for companies, then yeah that is going to hurt the nation more than it helps, government is basically helping Amazon get richer, just put a minimum wage on yearly, or monthly, and make it so that nobody is poor. If amazon can't afford to pay 2k more to those people, then I don't know who can.