EdTech Insight – Scaling a Midsize Startup

by | May 23, 2024 | Harvard Business Review, News & Insights

Executive Summary and Main Points

In the context of global higher education, the concept of “the mighty middle” in entrepreneurship merits close examination. This segment, situated between venture-scale startups and small businesses, offers substantial opportunities for growth without the need for extreme valuations. Innovations such as internet accessibility, global advertising platforms, and advanced tech stacks have enabled these startups to scale quickly and cost-effectively, providing more diverse entrepreneurs access to global markets. The mighty middle comprises companies with valuations projected to reach high single-digit millions to tens of millions within a decade, targeting “blue lakes” rather than the vast “blue oceans” sought by larger ventures. Their unique path involves bootstrapping, leveraging personal funds, or pursuing grants and adopts distinct strategies in capability development, hiring, and competition.

Potential Impact in the Education Sector

The prevalence of mighty middle startups significantly impacts Further Education, Higher Education, and Micro-credentials sectors by showcasing alternative business models that prioritize strategic growth and risk management over rapid scaling. The education sector can find value in partnerships with these companies for applied learning opportunities, including internships and project-based collaborations. Moreover, with the growth of digitalization, the sector could implement insights from the mighty middle playbook to enhance online education platforms, custom course development, and targeted global outreach.

Potential Applicability in the Education Sector

The mighty middle’s strategies and digital tools present multiple applications within global education systems. By adopting their approach, educational institutions could better leverage AI for personalized learning experiences and integrate digital platforms to broaden their reach. The DIY mindset and lean operation models of mighty middle startups can inspire educational leaders to pursue innovation with limited resources, potentially improving educational access and cost-efficiency.

Criticism and Potential Shortfalls

Despite the promising aspects of the mighty middle, it faces criticism for potentially overlooking the need for rapid innovation and disruption synonymous with larger scale ventures. Comparative international case studies may reveal that this model might not always be sustainable or adaptable across diverse economic and cultural landscapes. Ethical considerations, such as equitable access to resources and the impact on local economies, must be analyzed in the broader context of socio-economic development.

Actionable Recommendations

Implementing the mighty middle approach in global higher education could involve the development of entrepreneurial courses that emphasize frugal innovation and digital fluency. Strategic partnerships with mighty middle organizations can foster real-world learning and mentorship opportunities. Education leadership should consider investing in their technology infrastructure to support scalable, yet managed growth, and promote inclusive practices that align with the evolving dynamics of digital transformation in education.

Source article: https://hbr.org/2024/05/scaling-a-midsize-startup