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500 companies, where an Inc. 500 company grows its sales on average by 170 percent per year from 1983 ? 1988, Bhide found that they have a low scale for profitable operation, in most cases less than $10,000. With low fixed costs and a small profitable scale, the risk of failure is minimized and the expected distribution of profits is skewed.Further negating the risk faced by the entrepreneur, the founders were predominantly college-educated middle class men with low opportunity costs (see charts below). By starting a company with a small scale of profitable operation, they faced a "heads I win, tails I don't lose much" scenario...
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