Dossier. Businesses and managerial models
Focus. Political economy
The Debate. State vs. Market
Strategy and entrepreneurship
Innovation & Operations Management
Scaling Up Is the True Obstacle for Start-ups
One of the most important tasks for an entrepreneur is to bring a company from the start-up phase to the subsequent scale-up phase. The key factor is reaching what is called the "product-market fit," i.e. the validation of the business model. The scale-up of a company requires at least three elements: a growing number of leaders able to predict the competition and trends in the market and to delegate the key activities within the organizational structure; a scalable infrastructure; and an effective marketing function. A successful scale-up is a company whose leaders have been able to construct a structured organization, with separate functions and departments (horizontal differentiation), hierarchical levels (vertical integration), but that connects people, functions, and departments (integration) thanks to repeatable practices and procedures (standardization) and explicit rules and processes (formalization).