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HomeBusinessDifference between Startup & Small Business Venture  

Difference between Startup & Small Business Venture  

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A startup business is a misrepresentation is the small business, and there are significant differences in defining them. It is not easy to initiate a small business, and bringing a startup to fruition is equally difficult. A small business tries to generate cash, while the startups have to go rounds looking for investment and funding. There is a difference between a startup and a small business.

Know here what the differences between a startup and a small business are:


  • A startup gives the most importance to innovation. It is because they are creating something new and also aim to improve the existing. Developing a wearable device, a technology, or some business model means considering more innovation.
  • A small business is one among many other businesses such as another restaurant, hairdressing salon, a video blog, or an office. Starting a small business is to follow the solutions appearing out-of-the-box.

It is the first and most important difference between startups and small businesses.

Growth rate

  • A startup expects growth in a short time so that it can develop a reproducible business model. A startup should be capable of reproducing the success.
  • A small business needs to grow fast, and making a profit is a high-priority task. A small business opens to earning benefits means necessary growth happens.


  • A startup has no limitations on growth, and it concentrates on winning the market share. You can increase the influence until you transform into a leader.
  • A small business set up is by a business person and there are limitations to make progress. As a business owner, you can limit growth and concentrate on offering customers service in a particular circle.


  • A startup works to see first some money from a business. The aim is to initiate a product that the consumers will like and will be in the market. Achieving this aim ensures earning profit from the business.
  • A small business tries to earn from day one. The main focus is to gain and to see more earnings to consider business expansion.

It is a significant difference between a startup and a small business.


  • A startup business focuses on technologies. However, some may not know to use the technology, but they end up using technologies to achieve fast scale-up.
  • A small business has no special technologies. The technological solutions are many out-of-the-boxes. It helps, but they have to apply it to the main business goals such as sales and marketing.


  • A startup may include family members and some close friends. Financial borrowings are common in the development stages. Thus, the investors offer the additional capital and wait for extra financial returns. It means there is additional pressure.
  • A small business, as a rule, has investments and private savings of their friends, family, investor funds, and banking credits. Here, self-sufficiency is the requirement, and the money needs to return someday with interest.

Team and management

  • For a startup, developing managing qualities and working as a leader is important. There is a need to see fast growth. However, with increasing staff, there is more to work with investors and other parties concerned.
  • A small business hires workers and allows operating within the limitations of the company to ensure established growth. 


Another valuable difference between a startup and a small business is the lifecycle:

  • A startup lifecycle is unpredictable, and the truth is that 92% of startups pull the shutters down in 36 months.
  • A small business does not shut down in 36 months and is better than startups.
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