pg was specifically addressing the issue of management that is out of touch, while Coase was explaining the role of the firm. There is no reason why these reaso

pg was specifically addressing the issue of management that is out of touch, while Coase was explaining the role of the firm. There is no reason why these reasons couldn't co-exist. The main driver behind running a startup and working in a big company is a tension between two factors: control and leverage. As the chief of a small startup, a young person exerts a great deal of control over their destiny. However, they are short of resources. Even $20k from yc only goes so far. In contrast, at a bigger company, one has to constantly fight for resources. However, when they are available, and applied judiciously, the money can go a very long way. There is also the added benefit of working with some very brilliant technical people who may have no ounce of business-sense in their bones. On the far end of the scale, when one has advanced further up the rank, there is a great deal of firepower at your disposal. It is actually the same with startups. No startup can forever stay at 2 employees. In the end, there has to be sensible management in place.