The author actually states these "mom and pop" startups are good for the economy and for the people founding them:
These founders don't want to change to world. They just want to make enough money to provide for their family, buy a car, or earn their freedom. These people are the information economy's mom and pop business owners, just more technologically leveraged and profitable than their brick & mortar predecessors. Instead of starting restaurants and hairdressers they build coupon apps that are used by thousands of restaurants and hairdressers.
This is not a bad thing for the startup ecosystem or the economy. Quite the contrary. It means instead of only having companies at the fat head, there are tens of thousands of smaller companies fulfilling demand along the long tail. And sometimes they may even find the niche was much bigger than they thought. Ever thought air mattresses in living rooms would grow into a billion dollar company that would take on the vacation rental market and the hotel industry? I know many smart investors didn't.
These founders don't want to change to world. They just want to make enough money to provide for their family, buy a car, or earn their freedom. These people are the information economy's mom and pop business owners, just more technologically leveraged and profitable than their brick & mortar predecessors. Instead of starting restaurants and hairdressers they build coupon apps that are used by thousands of restaurants and hairdressers.
This is not a bad thing for the startup ecosystem or the economy. Quite the contrary. It means instead of only having companies at the fat head, there are tens of thousands of smaller companies fulfilling demand along the long tail. And sometimes they may even find the niche was much bigger than they thought. Ever thought air mattresses in living rooms would grow into a billion dollar company that would take on the vacation rental market and the hotel industry? I know many smart investors didn't.