Scalable startups are not as common as small businesses. 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.

Major Features of Scalable Startup Entrepreneurship

Some of the key characteristics that distinguish scalable startups from small businesses and other types of entrepreneurship are:

  • Entrepreneurs under this business model start on a small scale. However, these entrepreneurs have an intention to expand their business from the outset, unlike most small business entrepreneurs.
  • Scalable startups look at making profits and generating enough revenue to reinvest into the business.
  • Most scalable startup entrepreneurs are funded by Venture capital investors.

Challenges Facing Scalable Startups

These entrepreneurs face a share of unique challenges, among them being:

  • Raising venture capital
  • Recruiting professional employees and managers without incurring debt or impinging cash flow.
  • Implementing a flexible business strategy that can accommodate market shifts and technological changes
  • Coming up with an affordable business infrastructure without disrupting business performance
  • Realizing the growth target to meet investors’ expectations to secure future funding.