The major differences between startup and entrepreneurship


Running any business is a matter of much dedication, strategy planning as well as having an eye for detail. With proper coordination of your ideas, you can ensure that the company thrives. There are different kinds of business. While some are termed as start-ups, the others are called entrepreneurs. It is a notable fact that all start-ups are not entrepreneurs as well as there are certain fundamental differences between the two. This difference has to be understood thoroughly to run a successful business. The major differences lie in the concept of the terms as well as when you have a clear understanding of the terms as well as the characteristics of the types of companies you can ensure that you can master the business on your own.

by Isabella Rossellini 


Factors to consider

There are many different startups as well as the entrepreneurs also coming up in the contemporary times. Having a thorough understanding of both the factors is important. There are certain fundamental differences among them. The startup founders are entrepreneurs too, but the main difference is in the goals they have. Here we are going to outline the differences between the startups as well as the entrepreneurs, and you can understand thoroughly then what are the primary differences that you should be looking into. Such understanding is essential as the financial backdrop and the policies too vary between one to another, and that can affect the type of debt consolidations they can apply for. Both start-ups and entrepreneurs incur debts from the business, and these business debt relief policies too vary depending on the type of company it is.

What is entrepreneurship?

Having a proper definition of entrepreneurship and startup, to begin with, is a good way to distinguish between the two. The best way to define an entrepreneur is someone who is set on creating business opportunities and creates business systems and exploits all the opportunities they get solely for financial gain. There are different types of entrepreneurs like the internal entrepreneur and social entrepreneur. The social entrepreneur, unlike the internal entrepreneur, does not look entirely at the financial gain they can enjoy and also have a social agenda. While a successful business too can serve the society, when a business has the primary aim to do some social good, the objective becomes a social venture rather than an entrepreneurial venture.

What is a start-up?

There are many different start-ups, 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 apparently does not seem to be an ideal idea for a business. While the entrepreneurs always have a financial motive behind their goals, the start-ups 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.

Some fundamental differences

A significant difference between entrepreneur and 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 start-ups incur a huge amount of debts as well, and that leads to major trouble with the financial front? Often this can also lead to bankruptcy.

One major drawback of being a start-up owner is the risk and pressure associated with the entire project. Then to succeed the owner has to tie the branding of the start-up with their identity as well and hence a lot of the success and failure can affect their fate as well. A start-up would mean that much promise is being made and much money has to be raised but meeting these goals is not as easy and hence that often leads to failure.

Business debt

One of the significant risks that any business faces is the business debts and how to pay them off. The startups are majorly at risk since they are not always able to finance the business on their own and take loans and if they do not have enough profit, paying off the loans become difficult. There are different types of business debts and depending on the amount of debt and the company policies you have; the relevant debt consolidation is provided. You can easily manage the debt that you incur in the process. The business debt can lead to bankruptcy if not addressed at the right time. The overall success of the firm and start-up largely depend on your management skills of all the factors associated with the firm.


There are different types of business these days, and it is important to have your concept regarding them very apparent to succeed. The various types of business like the entrepreneurs and the start-ups vary from each other, and there are some fundamental differences. It is important that these differences be understood and addressed well so that you can successfully conduct the business. However, it is a business solely for financial gain or a start-up, the business debt is a common factor that has to be tackled strategically. It can be concluded that the obvious difference between the start-up and the entrepreneur and proper understanding of these differences help a person to grow and develop their own business properly.

Author bio: Isabella Rossellini is noted blogger who also has industry experience about business, technology, Social Media. She is always ready to provide her readers with insightful information about business terms and strategies, and you can quickly benefit from her articles. For more you can visit her linkedin.