A scaleup company or just scaleup is a company that already has a profitable and scalable business model and grows above 20% in either turnover or number of employees over a three-year period.[1] A scaleup can be identified as being in the "growth phase" life-cycle in the Millers and Friesen life cycle theorem,[2] or the "Direction phase" in the Greiner growth curve.
A key difference between a startup and a scaleup is the main challenges faced.[3] While a startup's main challenge is to find a repeatable scalable business model, a scaleup's main challenge is growth of the already identified business model while maintaining operational controls.[4]
It is reported that one out of ten VC-funded startups successfully transitions to this stage.[5] A 2018 study showed that only 0.4 percent of all startups scale, reaching more than 10 million revenues within 5 years.[6] The remainder stabilizes or grows at a much lower rate. A scaleup, once successful, obtains the unicorn status.[5]
Evolutionedit
One way of looking at the evolution of a startup into a scaleup is that scaleups evolve from startups as they cross the (so called) "growth chasm" [7] that is, once they solve the startup challenges of market research, development, and identifying a repeatable, scalable business model. This can be identified by a significant sustained repetition of critical mass[8] in a particular startup's most significant metric – generally, this metric is revenue, number of employers,[9] number of active users, number of active customers, or effective reach, relative to funds raised.[10] Once scaleup company employs at least 10 people, then it is considered within its growth phase life cycle.[11]
Importance of Scaleupsedit
The importance of scaleups and the rise of their terminology according to the World Economic Forum is that, although not all startups make it big, the ones that do greatly impact society by means of new technology, services and increased employment.[12][13]
To aid this rise, instead of large startup incubators, policy makers are more and more focusing on scaleups since they are the ones that add value.
One commonly used definition of 'scaleup' is the OECD-Eurostat definition relating to 'gazelles' or High Growth Firms: "All enterprises with average annualised growth greater than 20% per annum, over a three year period should be considered as high-growth enterprises. Growth can be measured by the number of employees or by turnover."[14]
Endeavor published a study reporting that scaleups create most of Southeast Asia's new jobs.[15] Endeavor founder/CEO Linda Rottenberg published the scaleup petition to further elevate the movement around scaleups.
Referencesedit
^"Santander article, ' The differences between startups and scaleups'".
^Miller, Danny; Friesen, Peter H. (1984-10-01). "A Longitudinal Study of the Corporate Life Cycle". Management Science. 30 (10): 1161–1183. doi:10.1287/mnsc.30.10.1161. ISSN 0025-1909.
^ abGauthier, Romain; Malik, Samar (September 26, 2023). "SAP BrandVoice: Scaleup For Growth: Will Your ERP Help Or Hinder?". Forbes. Retrieved 2023-10-14.
^"The Art of Scaling, ScaleUpNation (2018)" (PDF).
^"Growth Chasm illustration". startupeuropepartnership.eu. 29 July 2014.
^"SEP reports critical mass as key factor". twitter.com.
^"Eurostat-OECD Manual on Business Demography Statistics - OECD". www.oecd.org. Retrieved 2017-06-20.
^"Mind The Bridge Foundation take on Scaleup metrics". mindthebridge.org.
^Gusdorf, Florent (2020). New Words Lycée. Lexique thématique du vocabulaire contemporain anglais-français (Conforme aux nouveaux programmes). Paris: Editions Ellipses. ISBN978-2-340-04146-2.
^Santos, Eleonora; Lisboa, Inês; Moreira, Jacinta; Ribeiro, Neuza (2021). Abreu, António; Liberato, Dália; González, Elisa Alén; Garcia Ojeda, Juan Carlos (eds.). "Regional Competitiveness and the Productivity Performance of Gazelles in Cultural Tourism". Advances in Tourism, Technology and Systems. Smart Innovation, Systems and Technologies. 209. Singapore: Springer: 114–124. doi:10.1007/978-981-33-4260-6_11. ISBN978-981-334-260-6.
^"OECD Eurostat-OECD Manual on Business Demography Statistics". Eurostat-OECD.
^"Scaleup Companies Create Most of Southeast Asia's New Jobs". ecosysteminsights.org.
May 01, 2024
scaleup, company, this, article, factual, accuracy, disputed, relevant, discussion, found, talk, page, please, help, ensure, that, disputed, statements, reliably, sourced, 2017, learn, when, remove, this, message, scaleup, company, just, scaleup, company, that. This article s factual accuracy is disputed Relevant discussion may be found on the talk page Please help to ensure that disputed statements are reliably sourced May 2017 Learn how and when to remove this message A scaleup company or just scaleup is a company that already has a profitable and scalable business model and grows above 20 in either turnover or number of employees over a three year period 1 A scaleup can be identified as being in the growth phase life cycle in the Millers and Friesen life cycle theorem 2 or the Direction phase in the Greiner growth curve Contents 1 Concept 1 1 Evolution 2 Importance of Scaleups 3 ReferencesConcept editA key difference between a startup and a scaleup is the main challenges faced 3 While a startup s main challenge is to find a repeatable scalable business model a scaleup s main challenge is growth of the already identified business model while maintaining operational controls 4 It is reported that one out of ten VC funded startups successfully transitions to this stage 5 A 2018 study showed that only 0 4 percent of all startups scale reaching more than 10 million revenues within 5 years 6 The remainder stabilizes or grows at a much lower rate A scaleup once successful obtains the unicorn status 5 Evolution edit One way of looking at the evolution of a startup into a scaleup is that scaleups evolve from startups as they cross the so called growth chasm 7 that is once they solve the startup challenges of market research development and identifying a repeatable scalable business model This can be identified by a significant sustained repetition of critical mass 8 in a particular startup s most significant metric generally this metric is revenue number of employers 9 number of active users number of active customers or effective reach relative to funds raised 10 Once scaleup company employs at least 10 people then it is considered within its growth phase life cycle 11 Importance of Scaleups editThe importance of scaleups and the rise of their terminology according to the World Economic Forum is that although not all startups make it big the ones that do greatly impact society by means of new technology services and increased employment 12 13 To aid this rise instead of large startup incubators policy makers are more and more focusing on scaleups since they are the ones that add value One commonly used definition of scaleup is the OECD Eurostat definition relating to gazelles or High Growth Firms All enterprises with average annualised growth greater than 20 per annum over a three year period should be considered as high growth enterprises Growth can be measured by the number of employees or by turnover 14 Endeavor published a study reporting that scaleups create most of Southeast Asia s new jobs 15 Endeavor founder CEO Linda Rottenberg published the scaleup petition to further elevate the movement around scaleups References edit Santander article The differences between startups and scaleups Miller Danny Friesen Peter H 1984 10 01 A Longitudinal Study of the Corporate Life Cycle Management Science 30 10 1161 1183 doi 10 1287 mnsc 30 10 1161 ISSN 0025 1909 Marco Marinucci 2014 Scaleup Metrics mindthebridge org Dartmouth defines scaleup process a b Gauthier Romain Malik Samar September 26 2023 SAP BrandVoice Scaleup For Growth Will Your ERP Help Or Hinder Forbes Retrieved 2023 10 14 The Art of Scaling ScaleUpNation 2018 PDF Growth Chasm illustration startupeuropepartnership eu 29 July 2014 SEP reports critical mass as key factor twitter com Eurostat OECD Manual on Business Demography Statistics OECD www oecd org Retrieved 2017 06 20 Mind The Bridge Foundation take on Scaleup metrics mindthebridge org Gusdorf Florent 2020 New Words Lycee Lexique thematique du vocabulaire contemporain anglais francais Conforme aux nouveaux programmes Paris Editions Ellipses ISBN 978 2 340 04146 2 http www3 weforum org docs AMNC14 WEF AMNC14 Report TheBoldOnes pdf bare URL PDF Santos Eleonora Lisboa Ines Moreira Jacinta Ribeiro Neuza 2021 Abreu Antonio Liberato Dalia Gonzalez Elisa Alen Garcia Ojeda Juan Carlos eds Regional Competitiveness and the Productivity Performance of Gazelles in Cultural Tourism Advances in Tourism Technology and Systems Smart Innovation Systems and Technologies 209 Singapore Springer 114 124 doi 10 1007 978 981 33 4260 6 11 ISBN 978 981 334 260 6 OECD Eurostat OECD Manual on Business Demography Statistics Eurostat OECD Scaleup Companies Create Most of Southeast Asia s New Jobs ecosysteminsights org Retrieved from https en wikipedia org w index php title Scaleup company amp oldid 1214721698, wikipedia, wiki, book, books, library,
