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Also, in the West (most likely the US you're talking about), businesses can and do quickly respond if your business plan starts working and either swallow your customer base whole, or regulate you out of existence.

A larger business with access to financial capital markets doesn't need to out compete you on merit. They can bundle your service for free until you collapse then raise prices later.

Just look at how many 'killed by Google' projects seem to work like this.




Yes, the tendency of successful businesses in a market to acquire upstarts has an effect as well.

The positive outcome for many startups that take investment money is to be acquired in such a move to pay back those investors.

The negative outcome is that you get crushed without being acquired.




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