This article is written by Munira Hussein, a Contributor Author at Startup Istanbul.
The notion of the missing middle is supposed to be addressed by policies. The policies should address more overall growing startup firms and most importantly, these firms growing to transform the economy.
There is a lot that is said about sectors and
In reality, if you have been to a forest, you know that the canopy is dominant but when you walk under the canopy, there are a lot of shrubs that also have a lot of biomass. 47% of the economy in the US comprises small firms and businesses with under 250 employees. These including people producing services, SMEs and startups among other small markets. This is the missing middle is right there. It is the growth sector. It is
The old businesses can fall but you have to see new value created out of the old, that rewards us in some way. That is what value means to human beings, just like the forest ecosystem where the death of old trees nourishes the small plants.
When we talk about the economies that are stuck or poor, it is overwhelmingly the inability and the incapacity to convert nutrients from old businesses into the higher value users for new businesses. This is often not because the people do not have the capacity to do it but because institutionally, those large trees are not allowed to fall over. This is because
When these companies are not allowed to fall over and release the resources that could be available to entrepreneurs whether it is in terms of contracts, employees and mentorship, part of it is the implications of these failures. The entrepreneurial ecosystem is about failure and fall and also regrowth and new ideas.