Understanding SBA Definition of Startup

The Small Business Administration (SBA) defines a Startup as:

“In the world of business, the word "startup" goes beyond a company just getting off the ground. The term startup is also associated with a business that is typically technology oriented and has high growth potential. Startups have some unique struggles, especially in regard to financing. That’s because investors are looking for the highest potential return on investment, while balancing the associated risks.”

[Small Business Administration] 

Here we need to understand the three key attributes of a Startup.

Startups are High Tech

A key aspect that differentiates a startup from a small business is that the footing of a startups is high tech. This sound footing provides a solid foundation for innovation right from the formation or Ideating phase of a startup.

Startups have High growth potential

Another key aspect differentiating a startup from a small business is growth. As startups think big, they grow fast in terms of users, customers, market share. They have potential to scale up in a fast growing target market. For most of the startups, since past few years, this has become possible because of internet.

Startups have unique financial struggle

Startups strive to get investment from startup funding organizations.


What comes to your mind first when you think of Startup?
I would like to see your comments.