I don't think it should be a goal of a startup (or any business for that matter) to not fire any employees. The whole point of a business is to be successful monetarily. Sure, initially it may be to get a product out to market or get a technology out there, but eventually the goal is to make money.
If the goal of a company is to keep all of it's employees, then it by assumption the employees will have no motivation to do well in their jobs, if it is known in the company that there is no threat of firing.
While firing sucks, it is always there looming. In a startup, this forces people to push themselves, work hard, strive for good results. It is the role of a manager to determine the extent of the hard work, but it is also his role to say when enough is enough.
Bottom line, if a company never fired anyone it would have no implicit motivational pressure of it's employees.
If the goal of a company is to keep all of it's employees, then it by assumption the employees will have no motivation to do well in their jobs, if it is known in the company that there is no threat of firing.
While firing sucks, it is always there looming. In a startup, this forces people to push themselves, work hard, strive for good results. It is the role of a manager to determine the extent of the hard work, but it is also his role to say when enough is enough.
Bottom line, if a company never fired anyone it would have no implicit motivational pressure of it's employees.