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 busine

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.