Scalable Startup Entrepreneurship: Definition and Examples

takes the responsibility

Social entrepreneurs are individuals who innovate and develop an offering, entity, or business to help solve a social problem. A startup is a business structure powered by disruptive innovation, high scalability, and extreme uncertainty. to find events, funding, networking, and other entrepreneurial programming.

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You’re probably just hoping to serve good coffee, be popular with your customers, and create a successful, sustainable business—very worthy aims, of course. But a “coffee-shop startup”, on the other hand, would probably have an idea of doing things so differently that it ends up growing super-fast and overtaking Starbucks. Startups, on the other hand, usually have a business model that’s highly scalable.

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Snapchat did have to upgrade its technology to handle higher volumes, and has hired some new people as the company gets larger, of course, but rapid growth is much easier than with other types of business. Imagine serving 100 million clients in your web design business, and you’ll see the difference. High growth is not just an objective of a startup—it’s a key component of its business model. “Measure twice and cut once” is a carpentry adage that also applies to startups. Phenomenal execution is the spark that turns that great idea into a successful business.

Innovative, imitator, researcher, and buyer entrepreneurship are not alternative models but rather additional descriptors of the entrepreneurs who start different ventures. 195essentialis owned by a father-daughter duo in Massachusetts and came to market during the coronavirus pandemic to support essential workers. The owners recognized a need and crafted an entrepreneurial venture dedicated to supporting their local communities’ essential workers. These businesses typically employ residents of their town and sometimes family members.

Start with a Small Market

It’s released to a small set of users to test and provide feedback that is then integrated into the next version. By developing an MVP, you reduce the risk and expense of a larger release while getting valuable information from your users that illuminates their needs and desires. There is no point of converting unqualified prospects into customers; that is why it is important to learn to disqualify some prospects. When you go to build a team, don’t look for people who are just like you.

process of launching

This shift can benefit both parties, ideally helping to minimize frustration or delay. An informed customer experiencing clear cut and transparent communication is always the end goal. Google) which owns several other companies, but has also started a few of their own. There are times when entrepreneurs work within a larger company as an employee, but see potential to spin off new products or services that take on a life of their own. These intrapreneurs utilize an entrepreneurial mindset to employ the resources their current employer has available to them.

Building a scalable startup (and why that matters)

Houston Chronicle, “Examples of a Scalable Business Model.” Gain further insight into what a scalable startup model can look like. Recruit talented workers and managers with the skills needed to develop, test, implement, support, and maintain the company’s products. The greatest development that will allow small businesses and entrepreneurs to compete with large corporations has become available — for free.

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They can be small Illinois income tax ratees and large, scalable companies that grow and operate in different parts of the world. Although not a tech company, Starbucks can be seen as a scalable startup. The coffee company began as a small business in Seattle that was eventually purchased by a previous employee, Howard Schultz, after international travel.

As Eddie Earnest made clear in his Launching a Startup series, the idea is critical. You have to come up with a startup idea worth pursuing, and you also have to qualify this idea by testing it quickly and with little investment. As we’ve seen today, the idea needs to be scalable, offering a new solution to a problem people face, and creating the potential for rapid growth. Now that we’ve seen the characteristics of startups and what you can learn from them, let’s look at the process of launching a startup.

Scalable Startup Entrepreneurship Model

That’s the premise behind LittleBits, which provides STEM-centric building blocks aimed at empowering kids and introducing them to electronics careers. Bdeir has found great success; after starting small, she now sells her products in more than 100 countries. There are always exceptions to the rules, and you can be the fulfillment of the 10% chance that all startups have of achieving success. Reduce the amount of chance that is inherent in your journey by investing your priceless time and energy into these key tenets of exhilarating growth and scalability for any startup. When you’ve got all of that set up and have followed the rest of the steps in the Start a Business tutorial, you’ll be well on your way to a successful startup. Just remember to apply the lessons we’ve learned today from looking at the characteristics of some of the most well-known startups out there.

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The critical difference from growth is that scale is achieved by increasing revenue without incurring significant costs. To be truly successful long term, when companies add customers and revenue exponentially, costs should solely increase incrementally . Take, for example, Google, a spectacular example of founders defining growth vs. scale for their company and sustaining it. Alphabet’s crown jewel has solidified an operating philosophy that has allowed it to continually add customers (either paying business clients or ad-supported free users) while keeping costs at a minimum.

Large Business Entrepreneurship

Investors won’t shell out on a business that hasn’t considered the future. Startups that are willing to revisit their plan and restructure their strategy are much more likely to find funding than those that don’t build in some elasticity for growth. They will consider the whole picture; including your product, your staff and your long-term business plan. Being able to show that you have a plan for how you’ll scale your business and maintain profitability in the long-term can make or break an investor’s interest in your company. The resulting businesses can be for-profit, non-profit, or a hybrid, but acquired funds typically support operations, and extra capital is redistributed into the community.


This means creating a business model that is not only unique but also sustainable and able to generate revenue. A large market opportunity doesn’t necessarily mean a market with a lot of customers, it means a market with customers that have a lot of money to spend and a lot of potential customers. Research and identify large market opportunities by looking at industry trends, analyzing the competition, and talking to potential customers. It’s important to note that a large market opportunity doesn’t necessarily mean a market with a lot of customers. It means a market with customers that have a lot of money to spend and a lot of potential customers. This can give you an idea of what products and services are in demand and what gaps in the market exist.

  • Once you have a vision of the business that you want to build, you are going to need a team to help you complete that vision.
  • As a business function, entrepreneurship also has close ties to the economy.
  • As a business’ customer base grows and evolves, a large company entrepreneur may acquire an existing company offering innovative services.
  • A great number of startups get failed only in the first year of its operations.

Scalability is about boosting your bottom line over time by increasing revenue, while at the same time keeping cost increases to a minimum so that you don’t cancel out your profit. In this type of business, you only make a profit if your company does, meaning you need to be very driven, responsible and committed to your vision. In 2020, there were 33.7 million small businesses in the United States, accounting for 99.9% of companies, proving that small business entrepreneurship is on the rise. This type of entrepreneurship refers to any kind of small business that has been created by one person, without the goal to expand or franchise. For example, if you were planning to open a nail salon, a general store or a taco truck your goal would be to launch a single store. You’d likely plan on hiring local employees or even family members to get your business off the ground and would need to invest your resources directly into the business.

But what people don’t always realise is that this idea can change over time, and the first idea is not always the best one. Startups have the flexibility to change course drastically until they hit on the right business model. These are businesses that begin on a small scale but later grow with consistent naturing by allowing outside investors to chip in. Most technology companies are found in this category as they often begin as home or garage offices before scaling their way up into corporate HQs. To better understand the concepts of scalable startup entrepreneurship and the strategies discussed in this blog post, let’s look at some real-world examples.

  • The term startup refers to a company in the first stages of operations.
  • When a new teenager signs up and starts sending photos around, there’s little incremental cost to the company, so it can grow very quickly.
  • Every member of your team should be aligned with your plan for today and your vision for tomorrow.
  • You may or may not agree with the loftiness of Google’s mission, but the company’s ability to infuse its early employees with this belief was a key factor in its success.

You can find some resources on Envato Market to help you with that, such as this slick presentation template or this startup slideshow. There are a lot more factors involved, too, and we’ll look at them in the next section. By the end, you’ll have a clear idea of the main characteristics of a startup, and that will give you a much fuller definition of what a startup is (and isn’t). Scalable startups look at making profits and generating enough revenue to reinvest into the business. After all, when it comes to entrepreneurship, there are no guarantees—but limitless potential.

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