The short answer is No. People often think they are, but they are not the same thing at all. Even though they have some similarities it is easy to tell them apart.

Let’s look at a small business, it’s a locally owned business that has a small number of employees. You probably know many, like a bakery or a Local restaurant that doesn’t have a plan to become a corporation. These businesses are Low-risk Low-reward and they tend to stay the same over the years, it’s not usual for these businesses to grow into something big. Their funding is usually done through Personal assets, Credit cards, Loans and etc. and they don’t look for outside investors. They are fine being Small, Stable and Profitable.

Start-ups are small too, but they Dream Big. The main difference between Start-ups and Small businesses is their mindset. Start-ups go for Gaining ground and success and becoming a Big Hit and they Desperately refuse to stay small. Start-ups are an organization of resources around an idea that has significant growth potential. They are a prime target for investors because they usually have a big return on their investments.

In order to know more about Start-ups, you can also check our other article that explains to you about them in Full Details Here.


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