Challenges of Growth – Why Is It Difficult to Scale Up?

According to Statistics Finland, 95.7% of all Finnish companies—approximately 435,576 businesses—are micro-enterprises employing fewer than 10 people. Small businesses with 10–50 employees make up 3.5% of the total, or about 15,899 companies. In practical terms, 99.2% of Finnish businesses employ fewer than 50 people. Notably, there is a significant drop to the mid-sized business category (50–249 employees), which accounts for only 0.7% or approximately 3,108 companies.

For many micro and small business owners, maintaining a modest size is a deliberate choice. However, these numbers raise an important question: How many entrepreneurs aspire to grow their business but struggle to do so? Based on these statistics, there are likely thousands, if not tens of thousands, of such businesses.

There is a clear desire for growth, yet few manage to take the necessary leap. Recently, I have had discussions with growth-minded entrepreneurs whose companies generate between 3 and 5 million euros in revenue. They share a common vision for the future: self-directed, committed, and enthusiastic employees, and an organization where hierarchical structures do not stifle growth and agility. At the same time, they have recognized that as the company grows, a lack of structure and leadership can lead to chaos and inefficiency. So how can businesses strike the right balance between autonomy and necessary organizational structures?

A Bold Organizational Model – How Agile Teams Work

To achieve different results, companies must adopt new ways of organizing. Simply copying traditional management models does not work. But how can a company grow while maintaining employee autonomy and ensuring sufficient guidance and structure?

A 2024 Financial Times article, "Should companies let staff do what they want?" highlights three key factors that drive employee motivation and engagement: autonomy, skills development, and a sense of purpose.

Agile growth requires rapid decision-making and accountable teams that operate without heavy bureaucracy. One potential solution is autonomous teams, often referred to as the Cell model. This approach enables faster innovation, fosters a genuine sense of ownership, and enhances responsiveness to market changes. However, the model requires strong psychological safety, high performance standards, and a shared understanding of the company’s purpose and direction.

This kind of transformation does not happen merely by redrawing the organizational chart—it demands courage and systematic cultural development.

First Steps Toward a New Leadership Approach

1. Create small, independent teams – Each team should have a clear mission and full responsibility for its own project.

2. Build psychological safety and shift decision-making downward – Leadership should not micromanage but rather support and enable.

3. Define clear success metrics – Team performance should be measured by results, not bureaucracy.

4. Experiment and learn quickly – Poor ideas should be discarded swiftly, while successful ones should be scaled efficiently.

5. Develop organizational culture and invest in the right people – This model only works if teams consist of skilled and motivated individuals.

There is no single formula for bold growth, but a combination of well-functioning structures, autonomy, and a sense of purpose can make it possible.

How could your company apply these principles? If you want to discuss courageous growth further, get in touch!