Start-up vs Small Business
What is a startup, and how is it different from other companies?
Hello and welcome to IIC's first-ever newsletter!
We bring you one new startup concept every week, followed by a curated feed of start-up news, profiles and interviews of successful entrepreneurs. We are starting this because we believe that entrepreneurship truly changes the world for the better.
In this first issue of StartUpDrafts by IIC, we understand the difference between startups and businesses.
What is a startup, and how is it different from other companies?
Not all companies are start-ups, nor do they have to be.
🧠 The definition of a startup that is most accepted is defined by Steve Blank, who is a Silicon Valley entrepreneur. The definition is as follows: a startup is “a temporary organization designed to look for a business model that is repeatable and scalable.” While a company is “a permanent organization designed to execute a business model that is repeatable and scalable.”
Startups look for an attractive business model, while companies already have such a business model and are focused on successfully executing it.
How do you differentiate between a small business and a start-up?
"Start-up" - Is it just a vogue word for a fast developing company? Or maybe there is a real difference between what a startup is and how a small business is identified?
Let us look at three key differences between a start-up and a small business.
💡 Innovations
One of the most important differences between startups and small business is product or service innovation.
Small business does not make any claims as to uniqueness. Your business is one of many businesses (hairdressing salon, restaurant, law office, blog/video blog, etc.). Starting a business, you may easily follow out-of-the-box solutions.
Innovations are the most important things for a startup. Startups are meant to create something new and to improve what already exists. For instance, one may develop a new class of goods (wearable device), a new business model (Airbnb) or a technology no one knows as of yet.
🚀 Rate of growth
How fast will your business grow?
Small business, of course, should grow fast, but a high-priority task is to make a profit. When a business opens benefits, its growth happens as and when necessary.
A startup should always grow and within the shortest possible time creating a reproducible business model. You should be able to reproduce the success of the company worldwide.
👩💻 Technologies
Are there any technologies used running a business?
Small business. There are no special technologies required. There are many out-of-box technological solutions, which are to be applied to achieve main business goals—technologies in marketing, accountant`s solutions, etc.
Startup. Technologies are oftentimes the main product of a startup. But even if it is not so, a startup cannot help but using new technologies to achieve fast growth and scale-up.
India has the 3rd largest startup ecosystem in the world; expected to witness YoY (Year over year) growth of consistent annual growth of 12-15%
India had about 50,000 startups in India in 2018; around 8,900 – 9,300 of these are technology-led startups 1300 new tech startups were born in 2019 alone, implying there are 2-3 tech startups born every day.
Weekly roundup
🏥 Startups fight COVID-19: From hospital beds to oxygen, this WhatsApp chatbot provides instant, verified leads on COVID resources. In seven days alone, IntroBot has helped over 500,000 people on the ground.1
🇮🇳 Startup gets 20,000 orders for its pioneering device from 30 countries - A startup based out of Alappuzha, Kerala, has received orders from 30 countries for its electronic device that performs real-time sterilization of air and reduces 99% of coronavirus presence indoors within minutes.2
💵 Funding Galore: From Pine Labs To Moglix — $591 Mn Raised By Indian Startups - 3
🚀 Spacetech startups Skyroot Aerospace and Agnikul have bagged $11 Mn Series A funding each.
⚙️ Moglix is the latest startup to join the unicorn club after its $120 Mn Series E fundraise.
💰 Overall, $591 Mn was invested in Indian startups across 27 deals this week
🎯 Flipkart Plans $1 Bn Fundraise To Build Warchest Against JioMart, Amazon - Flipkart is reported to be in talks with sovereign funds, private equity majors and other investors to raise up to $2 Bn at a valuation of $30 Bn.4
🛵 EV startup Simple Energy to launch flagship electric scooter on Aug 15 - Simple Energy's electric scooter, code-named Mark2, was scheduled for launch in mid-2021 but has been delayed due to the ongoing second wave of the Covid-19 pandemic in India. 5
That’s all for this week!
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https://www.thehindu.com/sci-tech/technology/coronavirus-covid19-chatbots-covidindresbot-introbot-ai-for-oxygen-cylinders-hospital-beds-medical-resources/article34533822.ece
https://timesofindia.indiatimes.com/city/kochi/kerala-startup-gets-20000-orders-for-its-pioneering-device-from-30-countries/articleshow/82793746.cms
https://inc42.com/infocus/funding-galore/funding-galore-from-pine-labs-to-moglix-591-mn-raised-by-indian-startups-may-17-22/
https://inc42.com/buzz/flipkart-plans-1-bn-fundraise-as-reliance-amazon-step-up-competition/
https://economictimes.indiatimes.com/tech/startups/ev-startup-simple-energy-to-launch-flagship-electric-scooter-on-aug-15/articleshow/82656328.cms