Isn't that true of most businesses that aren't Facebook/Twitter/Walmart size? I agree with what you're saying, but it seems more applicable to the economy in general as opposed to just startups.
I'd invert what you'd say; it's true of most businesses that are that size, or are trying to get to that size. The two pizza shops in my town are happy to be an individual shop, and a regional chain. They're not getting bigger than that. Same with most of the businesses there, though many of them have died out as the bigger stores moved in within an hour's drive.
Startups explicitly aren't happy being a mom and pop shop, otherwise, they wouldn't be startups.
