This is where the term "Mittelstand" gets lost in translation, and speaks to the Author's point that the Americanized definition of start-up has become too polarized and absolute.
It is neither a lifestyle business nor a shareholder-driven business.
Mittelstand doesnt even have agreed upon definition here in Germany. I've heard people call everything and anything that lies between your local mom and pop show and Volkswagen "mittelständisch".
My (very wrong) opinion on what Mittelstand is: I think of a small-to-medium sized company that manufactures (I've never thought of service providing companies as Mittelstand) one group of things at a very high and competitive level. I think of companies that are pretty much strictly B2B. These are mostly family-owned businesses, but for me that doesnt need to be true. Companies that you only know of, when you need to know. And when you do need to know about them, you most definitely will know about them.
Again, this definitely isnt what most people consider to be Mittelstand. Just my view on it.
It is neither a lifestyle business nor a shareholder-driven business.