All this fuzz about Startups, only 2,5% scale up successfully!

Wouldn’t it be better to invest more in scale-ups and less in startups. Scale-ups contribute much more to society.
The definition of a Scale-Up is somewhat vague
Some claim that it starts when a Startup has a stable client base, makes profit, that it is able to implement the company’s business model developed in the Startup phase and is able to raise a siginificant amount of money around $ 1 million (based on an interview with Alberto Onetti, University of Insubria in Varese, Italy in the Technologist.eu).
Other state that a ‘scale-up’ is an enterprise with average annualised growth in employees or turnover greater than 20 per cent per annum over a three year period, and with more than 10 employees at the beginning of the observation period.
In growing from 10 to 100 employees, to 500, 1,000 and so on, companies have specific requirements for capital, management, skills and organisational processes. This can lead to ‘growing pains’ that can be easily and effectively addressed. Scale-ups are not a phenomenon only found in ‘digital’ or ‘technology’ or ‘cities’ or ‘clusters’. A small number of high-growth firms are vital to driving job growth and overall economic growth.
According to Alberto Onetti in this interview approximately 90% of startups go under before even raising $ 1 million. According to an Isrealy study among the 10% of remaining startups, only a quarter manage to make a profit, which is the second step in scaling-up. Only around 2,5% of startups are actually successful.
One can say that is good that there so many startups, since a very small percentage become scale-ups.
But I think that it is better to raise more capital and support for Scale-ups so that the 2,5% becomes 10%. With that they create more jobs and bring overall economic growth.
What is your opinion about Scale-Ups?
If you want to know more about Scale-Ups, attend the High Tech Scale-Up Conference, September 14, High Tech Systems Park, Hengelo, The Netherlands.
