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What Is a Startup? And How It Is Different From a Small Business?

What Is a Startup? And How It Is Different From a Small Business?



What exactly is a startup?

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Are startups and small businesses the same? People often think they are. In reality, though, they are quite different. This funny video explains the difference.

Learn more at

What is a Startup?

Are startups and small businesses the same?

People often think they are.

In reality, though, they are quite different.

While they have some similarities, they are not the same thing at all.

Luckily, it is easy to tell them apart.

First, let’s look at small business.

Most likely, you know what one is.

Small business is an ice cream shop in your district or your favorite local coffee shop for instance.

A small business is a locally owned business that has a small number of employees, a relatively low cost and income, and no plans to become a corporation.

Many of them operate as sole traders and put off or not follow through with forming a company.

These low risk, low reward businesses tend to remain the same for years.

Very seldom do these types of businesses grow into something bigger.

Startups are also small but they dream big.

Their motivation is money, popularity, and success, and they go for it.

The fundamental difference between startup and small business is in their mindset.

Startups are more about gaining ground and becoming a big hit, something that can have a very big success but also can fail easily.

Startups are about the ambition, level of dedication, dream and threshold.

It’s when you desperately refuse to stay small.

Startups are born to be big.

To be big or die.

Startups want to change the world.

Small businesses are fine being small, stable and profitable.

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