Startup and Small Business
While they sound similar, but there are fundamental differences.
People often confuse startup companies with small businesses.
What's a startup?
It is a new company looking to quickly expand into a much larger and much more profitable business.
They're finding ways to raise money and enlist backers to help them move their company up to the next level.
Startups are businesses that believe their product or service is in high demand due to analytics and has a lot of potential for disrupting the market.
They often are looking for investors like venture capitalists or raising money by crowdfunding to invest in the idea
What's a small business?
They are privately held companies, partnerships or sole proprietorships.
While the government considers companies with up to 1,500 employees to be small businesses, most of them have fewer than twenty.
A key element to small businesses is that they are not looking to dominate their market.
There is much less risk of failure with a small business, making them sustainable for the long run.