Have you ever wondered about the difference between a startup and entrepreneurship? If yes, then you are at the right place as today we are going to talk about this topic by pointing out the essential things which separate both these terms.
There are many similarities between the two like- they both provide jobs and give solutions to the consumers, which result in developing the economy of a nation.
What is a startup?
There are many different startups, and many of them are indeed, entrepreneurs. The objective of the startups, however, set them apart from the entrepreneurs. They try to create something new and often give a business-like strategic shape to something that does not seem to be a perfect idea for a business.
While the entrepreneurs always have a financial motive behind their goals, the startups are more innovative, and the finance is not the ultimate agenda. They are more into inventions, and they wish to make new things which are revolutionary and have a very idealistic motive in most situation.
What is entrepreneurship?
Entrepreneurs run new businesses vs businessmen/business people who run businesses, old or new. Entrepreneur-run new companies are of two types: Startups and MSME (Micro Small & Medium Enterprises.) MSME, like salons, gyms, dairy farms, software houses, digital marketing firms, web design firms, and freelancers are usually relatively risk-averse, service-oriented, lifestyle businesses, which grow to a specific size, depending on preferences of owners.
Note that just because a firm creates digital content or does programming, even at a world-class level, does not make it a startup; it can still be a tech SMSE. Owners usually own 100% of the business and if they seek funding, its in the form of credit or maybe grants, if they are a non-profit.
A significant difference between entrepreneurship and a startup comes with closing the loop. Business is not viable unless the loop of creating a value item, producing and delivering it to the target customers and getting paid for the entire project is completed and closed.
For the entrepreneurs completing and closing this loop is necessary and essential for ensuring ultimate profit but startups are not always very much bothered with it. Which is a reason why many startups incur a massive amount of debt as well, and that leads to major trouble with the financial front? Often this can also lead to bankruptcy.
There is nothing black or white in life; it’s always grey. Therefore, Entrepreneurship is not superior to startups and vice-versa. It all depends on you and your mentality. Entrepreneurship is a mentality, which you can implement in any business. To learn more about how to achieve the right entrepreneurial mindset, visit us at www.smmart.co.in