There are several other reasons regarding why startups win:<p>* Startups usually have great hackers. Business is about people, and successful startups are started with or staffed with great developers who are exponentially more productive than the norm. PG explains this phenomena in his essay: <a href="http://www.paulgraham.com/gh.html" rel="nofollow">http://www.paulgraham.com/gh.html</a><p>* Startups also tend to be more focused, driven, agile, and create an environment conducive for productivity (no meetings, HR paperwork, etc.).<p>* Startups also target the low-end market. To quote PG again, "it's easier to make an inexpensive product more powerful than to make a powerful product cheaper...if you build the simple, inexpensive option, you'll not only find it easier to sell at first, but you'll also be in the best position to conquer the rest of the market."
This is what Mark Zuckerberg said during the Startup School 2011 and I think it is so true.<p>"I don’t pretend that I had any idea that I was doing. I always felt like we were so close to dying in the first years, and were afraid that Google was about to build our product and we were going to be screwed, and look how long it took for them to build our product,” he said laughing, referring to Google’s newly launched social product Google+. “You are going to make a ton of mistakes, you don’t get judged by that.”<p><a href="http://techcrunch.com/2011/10/30/facebooks-zuckerberg-if-i-were-starting-a-company-now-i-would-have-stayed-in-boston/" rel="nofollow">http://techcrunch.com/2011/10/30/facebooks-zuckerberg-if-i-w...</a>