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So this article seems to treat startups and small businesses completely different, but I always assumed they were very similar. What's the difference between a

• asolove 16y ago
  I think in this context, "startup" means a business with investors that is not expecting to break even yet, whereas "small business" means a business that could potentially fold any month because of a cashflow shortage.
• keeptrying 16y ago
  A business is something that has clearly defined cash flows. Ie you put money here and you get money there. A startup is a new venture which is trying to become a business. Read drucker's "innovation and entrepreneurship" - he clearly describes the difference. Infact if you read this one book, you can skip every other business book including "4 steps to the epiphany", . It's incredible that his book was written in 1985!
  • vdm 16y ago
    Great answer and thanks for the recommendation.
• alexro 16y ago
  It's also common to define startup as a venture seeking for a scalable business model. If it fails to find one it may fail or become a small (lifestyle) business
• bdclimber14 16y ago
  My opinion is that the difference is all about growth. Small businesses (lifestyle businesses) focus on quality of life and happiness of owning their own business prior to growth. Startups tend to sacrifice everything for rapid growth. Small businesses are in it for the long haul (20+ years) where most startups are looking to cash out quick (~5 years). Startup entrepreneurs generally don't want to run the business forever.