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  The first thing that would occur to you is what differentiates a small business from a startup. Well, there’s a distinct difference between a startup and a business.  A startup is a young company with the goal of upsetting the status quo in an orderly manner. It searches for a business model which is repeatable. Basically, a startup can simply be referred to as a large corporation in its rudimentary stage or outset.
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A small business, on the other hand, is a privately-owned enterprise with the sole aim of making a profit right from the onset. While a start-up is one that searches for a business model that works down the line, small businesses work with a business model that has been working for over a while.  Startups aim at taking over the market and this comes with a whole lot of effort, of which most won’t yield desired results, while a small business just fits into any reachable market and efficiently serves those within the market. Here are a few reasons you should go for a small business rather than a startup.
  • Building a small business doesn’t require so much investment as compared to a startup
In most cases, founders of startups have to search for external investors in order to carry on, but small businesses don’t require too much investment and can be started off with capital gotten from personal income, friends and family. 
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  • Building a small business has a lower risk than startups
Don’t get it wrong, there’s risk involved in both, but there’s still a difference. Research has it that 80% of startups go down the drain after all the investment, research and other efforts that have been put into it. When things go wrong in building a startup, it’s a whole lot of loss compared to building a small business. 
  • Building a small business comes with an assurance of making a profit even from the onset
If you run the business as you should, there is a high probability that you will make a profit. But this does not apply to building a startup because, in the case of startups, there’s not usually a particular standard to follow. However, you can’t be assured of profit and returns until a certain stage is attained and a whole lot of startups do not get to that stage before it crumbles. Other reasons include:
  1. Running into debt happens more in building startups than in building a small business. 
  2. A small business can eventually become a startup, it can become an immensely large organisation, also depending on what the founder wants. 
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This article was first published on 17th March 2022


Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

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