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Startup Scaling Glossary: Key Managerial Challenges & How to Solve Them
Scaling a startup is like raising a baby: exciting, rewarding, but then things could go sideways if you're not careful. It comes with a unique set of managerial challenges that can make or break success. According to the ESI Scaleup Monitor 2025, only 0.47% of European firms are categorized as scale-ups (younger companies achieving consistent hypergrowth of over 40% annually) highlighting just how challenging and demanding sustainable hypergrowth is.
Once you’ve nailed product–market fit, the next challenge kicks in: scaling rapidly, being prepared for it, and managing growth without losing focus or control. Most don’t succeed. What worked with a team of 10 starts to crumble at 30. Then again at 100. The Startup Genome Report shows that 74% of high-growth startups fail: not because of a bad idea, but because they scaled too early or managed it poorly.
Whether you're chasing Series B or building a sustainable B2B engine, scaling exposes hidden weaknesses: in leadership, revenue models, cost structures, internal systems, and organizational design. And often, you're discovering those cracks while moving at full speed.
This glossary highlights the most common growth pains companies face during scaling—one letter at a time—and offers practical steps founders and managers can take to navigate them and build for sustainable growth.
Scaling in Europe: Understanding the European Scaleup Ecosystem
In the previous entries in our Scaleups series, we explored a number of successful European scaleups and high-growth firms (HGFs), such as Alaiko, De Lift, and nCore. We explained three distinct scaleup profiles: Low Tech – Market Leader, Operational Model – Must Scale, and High Tech – Scale the Technology. Additionally, we examined the five main challenges of scaling a business—such as the do-it-all founder dilemma and managing operational processes during rapid growth—and provided actionable strategies to overcome them.
Today, we expand our focus to the broader European scaleup ecosystem, exploring its unique characteristics and challenges. Our aim is to deepen understanding of what sets Europe apart as a scaleup arena and to outline strategic approaches for navigating its complexities.
5 Main Challenges of Scaling Your Business and How to overcome them
5 Main Challenges of Scaling Your Business and How to Overcome Them
Many startups aspire to scale, but scaling successfully is far from guaranteed. For those aiming to grow rapidly and capture market share, scaling brings opportunities — and significant challenges. Only 1 in 10 companies in Europe grow by more than 10% annually over three years. Even when growth happens, it brings new hurdles that test founders, teams, and systems.
While startups often focus on product-market fit and early traction, scaling requires a different mindset and structure. It impacts every aspect of a business — from leadership to processes, culture, and cash flow. Without the right strategies, rapid growth can overwhelm even the most promising company.
In this article, we outline five major challenges that founders face when scaling a business and share practical, proven actions to overcome them.
Scaling in Europe: Top Success Stories and Lessons You Can Apply in 2025
Scaling a business from startup to scaleup is notably challenging, especially in the fragmented and diverse European market. Entrepreneurs often face hurdles such as market fragmentation, lack of regulatory harmonisation, funding limitations, and cultural and institutional challenges. Nonetheless, a notable number of European startups and SMEs have managed to not only survive but thrive, providing crucial insights into their paths of rapid growth.
In this article, we explore successful scaleup cases as highlighted by the European Scaleup Monitor 2023 and compare them with the most recent insights from the 2024 edition. We also integrate several insights from our own experiences and practice.
Is there a replicable formula for scaling success? What elements are essential to the elusive 'scaling DNA'? And how do specific market demands shape the scaling process?
Our goal is to uncover common patterns among these high-growth European firms, offering practical insights for managers and decision-makers to tackle their own growth challenges and seize new opportunities.