All small caps don't become large caps!

It is a myth that all small cap stocks become large cap in future years. The extreme faith among investors is that any small cap company will keep growing till it becomes a large cap and thus, one purpose of owning a small cap is to wait till it becomes a large cap. This is not always true. While some small cap companies do scale up and become larger in size both on the business and the market capitalization front, others can very well remain small caps for a long time. The transition depends more on the nature of the business itself, the market for the business, ability to scale and opportunity to scale the business and also the promoters' intent.