Entrepreneurship and startup: Learn the difference

Entrepreneurship and startup: Learn the difference

Entrepreneurship and startup: Learn the difference


The words startup and entrepreneurship have been used too freely in recent years. But let's not fool ourselves, these terms are very different and do not imply the same.

Obviously both concepts are related as they refer to business. They are also similar in the fact that they carry risks and the possibility of failure is very real. As in any new business adventure.

Thus, an entrepreneur is a person who assumes a personal risk in the creation of a new business. He has the responsibility of his success or failure and usually assumes the management of the business alone.

Instead, a startup is a type of company. This could be created, or not, by an entrepreneur. This type of company seeks to create a new business model. Its initial intention is to create a new product or service and see if there is a market for it. Because they are associated with innovation, they are generally technology companies.

 
A difference in focus

 

Usually, an entrepreneur looks for business opportunities and how to make it profitable. They usually choose proven and sustainable business models. In addition, they invest based on an established business plan.

His intention is to create a viable business in a set time frame. For its part, the founder of a startup seeks to create something innovative. It may be successful, but even if it is not, if you introduce a valuable idea you will not have failed at all.

The literal translation of startup is "start-up" and that is exactly what it does. If the idea is original enough and with potential it will attract investors.

Both have a great ambition to succeed, they must work hard and are under pressure. But while one seeks to sell their product, the other focuses more on making their idea known and giving value to the eyes of investors or large companies.

In short, the entrepreneur is looking at the present and the immediate future; while the founder of a startup has its sights set on later in the future.

Goals in the short and medium term against long-term goals. Business model tested against innovative model. Existing markets against the discovery of new markets. Personal investment or search for investors. Both undertaking and creating a startup are complicated initiatives. Knowing what your business idea is circumscribed is a necessary first step when planning your road map to the business world.