Careful. Your valid point is one KK is making too by recommending this book. He's just setting the stage by contrasting this approach with how 'start-up' has come to be associated with "get big fast" in our tech world.
The very point being made is that Don Lancaster describes how to be successful in business without having to get big fast. KK is merely pointing out how Don did this before entrepreneurism came to be associated with fast growth.
Your question and ef4's comment are caught in an attractor of a different debate.