Key Differences Between Startups and Small Business
Startups are everywhere nowadays – every year, over 300 million startups are created. Many people assume that startups and small businesses are essentially the same thing. They can be similar, however, there are a few key differences. If you are a young entrepreneur, it is useful to know these differences to figure out what kind of business you are going into.
Entrepreneur, Valentino DiGiorgio is a community-conscious philanthropist with a passion for empowering individuals and families in need. Today, he shares the key differences between small businesses and startups.
- Startups exist to create a unique service or product that is currently not available on the market. Small businesses, however, sell things that already exist. Think independent coffee shops, Etsy stores, mom and pop shops, etc.
- Startups often get backing from venture capital organisations. Small business owners would have to self fund or take out loans from banks.
- The focus of a startup is about innovation, while a small business focuses on a quality product or service while keeping costs low.
- It may take a startup years to grow and see profit, while small businesses need to focus on revenue from the beginning.