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The following article was published in our article directory on July 30, 2016.
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Two Business Types to Consider When Planning to be an Entrepreneur

Article Category: Business

Author Name: Theodore Henderson

A novice entrepreneur who wants to take one step at a time is likely to start a small scale business. The question is what type of business would you take?
Most people believe that a small business and a startup business are the same thing�that they are simply defined by their organizational size and market. They are not, technically speaking. Knowing the difference between the two may spell success in your venture, so it is crucial that you understand your options.
A startup business is something that has the potential to produce impressively large returns and reach unfathomable success. However, it also has the risk of collapsing due to the uncertainty of the market, the flexibility of its operational structure, and the unconventionality of the products and services, usually sold as intangible things. It can be operated with or without employees (aside from the entrepreneur), and the business plans and systems can be developed as the operation goes, as needed.
For instance, it can be a website that can cater to a market beyond geographical boundaries and racial differences. It can be a game developing business that practically targets all mobile phone users. It can be an online marketing consultancy whose services vary according to the changes imposed by search engines. It can be anything that has unset limitations and typical restrictions.
A small business, on the other hand, can be a sole proprietorship, partnership, company, or corporation that is limited by its market share, revenue or most of the time, number of employees. It remains to be small even when the opportunity to grow becomes available. It is a venture that follows a guaranteed yet non-expansive business model that prioritizes stability rather than expansion. Oftentimes, this kind of business expands via franchising, which takes out the restriction of market reach without involving additional investment from the owner.
For instance, it can be a local store than has one or several branches catering to a certain community. It can be a business that simply targets to achieve certain revenue, enough to serve as a long-term source of income. Usually though, a small business is limited by its number of employees as specified according to location.
In the U.S.A., a small business is defined to be a business with less than 250 employees. This is standard across all states but is different from elsewhere in the world. In Europe, a small scale business has less than 50 employees while in Australia, it is only recognized as small if it has a maximum of 15 employees. In additional to the number of employees, a small scale business is also bounded by set limitations depending on city and state laws.
Restaurants, laundromats and barbershops are some of the best examples of small businesses that prioritize stable operation rather than expansion. Such businesses are often labeled as mom-and-pops, which are small but consistently earning.
The difference between a small scale business and a startup business defines potential in succeeding and reaching higher grounds. There are legal implications as well, as in taxing and US Small Business Administration grants, which have to be closely considered.

Keywords: starting a business, business start up, launching a business, entrepreneur, entrepreneurship, small business, small biz, home business, home based business, small business success

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