What is startups? What is the difference between startup and small business?Add Answer
I started a restaurant, but never considered it a “startup”. It was new to the world, not a chain, and though successful still a small business. It was complicated to figure out but there were a million examples to work from and you start cash flowing rather quickly.
I also have a startup - because they are new products that have not been done before. There are many complicated things to figure out - even with simple products! I agree with Paul O’Brien’s answer although the fail rate for restaurants and startups seem to be nearly the same. Startups often require more money though.
In a startup you work for a long time without making money as you need to prove the product or the concept. If managed correctly, once it takes off you can scale up quickly. With a small business (like a single location restaurant) there is only so much money that can be made. If a small business is unique enough and loved enough, you can franchise it to become larger but it is a different kind of risk/reward.
A startup is an entrepreneurial venture of new ideas. It is setup of a business model which is targeting a particular market space for the success of that business. Anyone can start a startup if he/she has a very innovative idea to make that business a success. Usually we relate startups with technology or internet oriented business. But some interesting non- technology startups are also there. For example redbus.in flipkart , paytm are some of the successful Indian startups.
In 2015, Our Prime Minister Narendra Modiji, during the Independence day speech, announced the initiative of startup India campaign.
The main points of that campaign are -
1. Simplification 2. Incentives and Monetary support 3.Support from Industry and Academics.
To get those benefits from this initiative of Indian government, the entity should have been registered in India. The new company will benefit from startup category for 7 years (10 years for biotech company).
There are some differences between startups and small business-
• The main difference is startups are unique business which were never tried by anyone, where small business operations are one in many. They are usual business.
• Startups are expected to grow at the rate of 7% to 10% per week. The growth is expected to be massive. Whereas the small business enterprise will never get a growth rate like this.
• Usually entrepreneurs are comfortable in their family business and have knowledge about their own business only. But startups are mainly starting a business with offbeat ideas.
• Startups are mostly rely on backups from venture capital or angel financiers for financial support. While the small business initiatives have to depend on bank loans with so many conditions.
• So gear up tight your belt and start a startup with the help of Central Government initiative program.
• The rate of success of startups is very less, but those who are success have left their footprints bold and visible.
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