When does an entrepreneurial company become corporate? And what is lost?
Usually the change is centred around ownership. If a founder sells a business to a large company, often something dies. The creator’s passion, pride and eye for detail fade. The loyalty and quirks which made the company special melt away. I have watched the sad decline of Strada, a restaurant chain I started and owned with partners, after it was sold to a much bigger group. It feels as if the magic is no longer there but no doubt my view is prejudiced.
Perhaps scale alone leads to this dilution. As a company moves from being “independent” to national to global, its personality and individuality become blander. Size brings systems, financial disciplines, bureaucracy – and responsibility. Big businesses must adopt policies on everything from climate change to bribery to whistleblowing to supplier relationships. Seat of the pants, whimsical management tactics will no longer be adequate.