The biggest innovation in the small business scene is the creation of the startup. First of all, startups are not the same as small businesses. Small businesses are usually privately owned, exist for profit and usually are not targeted to have much effect on a large scale. Startups on the other hand, are temporary scalable businesses that, though existing for profit, are targeted at searching out major solutions to problems for the sake of disrupting a particular industry.
Why Small Businesses Want to be Startups
Since startups started cropping up all over the world, the business scene has changed. Many people confuse small businesses as startups, and they are not entirely to blame. Small businesses have begun to copy the startup model. The startup style of business is easily recognized for its innovative approaches and flexibility, which has been a proven factor of their success. The necessity for small businesses to improve sales and performance, and the confusion among most on the distinction between startups and small businesses, has led to this copycatting.
The Small Business Goals
The goal of a small business is to gain profit and maximize on sales. Small businesses are targeted towards gaining the maximum amount of customers within the reach of the business. The availability of the internet has dramatically increased the reach of the small business. This is another factor which has led to small businesses copying the startup model. The startup is usually geared and targeted towards a worldwide market, and the twentieth century globalization trend has brought that worldwide market closer than ever, even to the steps of the small business. Small businesses have the capability to target a wide market now.
Small Businesses Evolve Into Startups
Popular knowledge dictates that while startups are not small versions of big companies, small businesses can be. Current trends have blurred that line. Small businesses are more and more evolving into startups. By emulating the model of the startup, the small business scales faster than it normally would, and can become a big company in a shorter time.
Are Startups Still Cropping Up?
Yes they definitely are, and at much faster pace. The present valuations of startups are at an all time high and this is motivation for the entrepreneur with ideas and ambition. Aspiring entrepreneurs are springing up faster as a result of worldwide economic conditions which have ceased to favor the traditional form of business. Starting a startup requires as little as no funding at all, and several VCs and angel investors are lining up to fund startups at a concentration that is unprecedented. The success of the startup –despite being limited to 1 out 9, can also be seen with the proliferation of accelerators and incubators at a level not seen since the dotcom bubble.
The small business world is growing, innovations abound everywhere and the internet has made a market out of every individual on the planet. Small businesses are leveraging on this opportunity to scale faster than ever.