A micro or small business and a startup are thought to be the same. So what is the difference between the two concepts? There are some differentiating elements, of which, the most important is business scalability or exponential growth potential. A startup is designed to grow rapidly, and its focus is not geographically limited. For example, it is not possible to consider a new restaurant in the city as a startup, not even a franchise is. But a new app or a website designed to provide an innovative service is. Startups are not limited to a certain area, although many do operate on offices and main headquarters. This term is currently used consistently in the business world, related to emerging companies that have a strong working relationship with technology. These are businesses with innovative ideas that stand out in the market supported by the new technologies.
This “portable” feature that many startups offer has attracted a large number of investors – commonly called business angels – who bet on small companies and contribute capital with the aim of multiplying exponentially. The risk of investing in them is directly proportional to the very high percentage of return that is perceived.
Turning small into big
Each startup is backed by an idea that seeks to simplify complicated processes and jobs so that the market has a simplified and easy to use experience. They are usually businesses that want to innovate, develop technologies and design web processes. Mainly, they are venture capital companies. Not everyone owes or has the opportunity to work in large companies, and that’s how important a startup is.
Mike Baur co-founder and CEO of Swiss Startup Factory, reflects on the figure of the entrepreneur and the need to bet on a plan defined within the roadmap when starting a business. That’s where identity, communication, and ideas come into play. He believes in the “creators generation more than anything, and unlike other coaching and advisory firms, he believes taking risks is the core of whatever potential there is in a company; if no risks are taken, then nobody will ever know what could have been good.
New habits have put on focus that the needs that societies today need are growingly more complex and digital, and Baur, the serial entrepreneur, believes that millennials have the smart solutions to an ever-changing smart environment.