If you have a business that depends on Metcalfes law (the value of a network is proportional to the square of the number of connected users of the system) then yes you need to get big fast and become the market leader.
But for many other types of business this is simply not true. To take 37signals as an example there are plenty of players in their market, probably thousands that are turning a tidy profit. I can name a few just off the top of my head.
If you have a business that depends on Metcalfes law (the value of a network is proportional to the square of the number of connected users of the system) then yes you need to get big fast and become the market leader.
But for many other types of business this is simply not true. To take 37signals as an example there are plenty of players in their market, probably thousands that are turning a tidy profit. I can name a few just off the top of my head.