We have come to an era where startup seems cool or in this time, entrepreneurs and startups are booming, business.
In this article, we will discuss the meaning of Startup, Small business, Entrepreneurs with an example, Let’s begin
What is a Startup?
It is a venture which runs on a unique idea and solves the real-life problem.
Some people think that startup or business both are the same. But it’s not true.
Startup : It’s completely different from a small business.
Startup solves the existing problem with a modern solution.
What is Small Business?
They do business in their own traditional style and earn a profit. They always want to be stable and profitable.
Let’s take an example
Small Business – Transport agency / Driver
If they want to earn revenue they have to buy a car themselves and then they will drive the car themselves or they will keep a driver to generate revenue.
According to this case if we want to expand it, then they have to invest more capital because we have to buy a lot of cars.
In the case of Startup Let’s take an example of OLA
OLA does not maintain a car to generate revenue which provides a platform to the car owners and with the help of GPS they combine driver and customer according to modern technology to provide the ride.
OLA charges some commission from the owner of the car for their service.
In this case, OLA does not have to buy their own cars, but they use their own resources and other people’s resources very efficiently.
In the example of a small business and example of a startup, their work has the same.
But the OLA’s work strategy is different from small business’s example.
Small businesses do not be able to scale their business, And they are happy with making profit and stability.
But in Startup, they easily scale their startup because they have unique ideas and they are solving a real-life and genuine problem.
A startup is very different from a small business because:
1. A startup starts small with a big vision
2. A startup always wants to be big but it’s the failure rate in high because
- Founder’s ambition
- Level of dedication
3. A startup always formed to be big and giant become very big
Startup become big like OYO room OLA cabs
Fail like ShopClues & Doodhwala due to lack of innovation.
It means, the startup can’t remain constant it keeps on scale-up.
4. A startup always want to solve a real-life problem and change the world
Every startup has the potential to do something unique big. Its success and failure depend on its execution.
What is an Entrepreneur?
An entrepreneur is a person on a group of people who established an enterprise take the necessary risks to accumulate all the resources that are required to carry out production or perform the services and create on innovation product or service.
I hope this is helpful for you , Thank you
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