The differences between business and startup

The differences between business and startup

Very often the terms startup and enterprise use confusingly. Here are all the differences between a startup and a business.

In the economic field, startup and business are two terms that are widely used and often confused with each other. A real legal definition exists only for the term enterprise, which defines: ” organized activity for the production of goods and services “.

Having an organization to produce goods and services is certainly also the prerogative of a startup; both must study the market, its opportunities, its rules, and its risks; building a team that carries out production, from a technical and organizational point of view.
Here are the differences between a startup and a business.

Differences between startups and companies

The term startup is of US origin, and its origin attribute to Steve Blank, an American professor, and entrepreneur who also collaborated with the Pentagon.

In Italy, it is sometimes used as a synonym for a young business – and there and a “startup phase” in every company’s history. However, the term startup is much more specific and refers to activities that have certain characteristics in terms of:

Production: the startup must produce goods or services not yet present on the market

Therefore innovative, must be scalable, i.e. it must be able to expand by reproducing the same business model on a larger scale. A bar or a restaurant, for example, is not a startup, as they are not scalable; However, the term startup is much more specific and refers to activities that have certain characteristics in terms of:

strategy: the start-up aims to grow strongly and quickly. Thanks to innovation and scalability, while a company does not have these “delusions of grandeur”;
composition of capital: money needs to grow. Which is the case of start-ups is mostly classified as risk capital, the result, for example, of venture capitalism or reward crowdfunding operations ;

composition of personnel: from the composition of the capital it is clear that the startupper is looking for founders and partners – and not shareholders and employees.
Goodwill and startup: here are the differences. Having an organization to produce goods and services is certainly also the prerogative of a startup; both must study the market, its opportunities, its rules, and its risks; building a team that carries out production, from a technical and organizational point of view.
Here are the differences between a startup and a business.

Those who start a startup do so because they believe that their idea can become a great company

It is a strong bet, a risk in some ways higher than that of a normal business. Behind a startup is the idea of revolutionizing the market. Creating new ones; behind a company. There is the search for stability, the maintenance of a positive position within the existing framework of the market.

Throwing yourself into the world of startups is also possible for those unfamiliar with computers. The important thing is to have innovative ideas and build a team with the skills to put them into practice.

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