For people who are interested in starting a business. Many people are confused about how these two words, Startup and SME, are different. So it is interesting. that we will consider What are the differences between these two words? And what do they have in common?
What is a Startup?
Startup is a business that has a business model for creating products or services. Starting from a small point To grow exponentially by that business Innovation or technology is the main factor in creating a business. Most often, Startups are new forms of business. that helps solve problems in the daily life of ordinary people Like no one has done it before, such as Food Delivery business, public transportation service business, etc.
What is an SME?
SME is an abbreviation for Small and Medium Enterprises, which refers to small and medium-sized businesses. It covers production, trade, and service businesses. The criterion used to determine the size of an SME is the number of employees hired. and the amount of fixed assets of the business
Size of the initial business
If measured by the difference “Size of the business” when starting a business for Start Ups is usually very small and most of the initial assets are weighted towards “new business ideas” or intellectual assets. While SMEs will have larger business sizes. And most assets are tangible assets.
Ideas for starting a business
For Start Ups, they usually start a business with the idea of wanting to solve a problem. For example, Problems calling a taxi It’s quite difficult to call for service. It takes a long time and there are many problems, resulting in a mobile application about calling a taxi service via mobile phone. which is very popular is growing rapidly And can expand to many other countries as well, while SMEs may start a business from products or services that they already have. But it may still not be enough to meet market demand. causing new entrepreneurs to come and produce products or various services to meet market needs that are still insufficient
technology
For most Start Up businesses, new technology and new forms of management will be used to drive the business. or even new “innovative” works such as driverless cars electric cars, etc., while SMEs will use technology that responds to the original production or service process. but improved It may not be a new idea. but can help production or the service process has evolved To quickly respond to customer needs, etc.
It can be said that all Startup businesses are SMEs, but not all SMEs are Startups. There will only be some SMEs that have business models and business operations that meet the definition of a Startup. Therefore, SMEs can be considered as businesses. Startup However, both Start Up and SME have one thing in common. It is a business to meet the needs of customers. And must keep adapting to trends and changes in consumer behavior. No matter what kind of business it is, if you don’t know how to “adapt”, there is a chance that it will be disrupted and disappear as well.
How important is a startup to the economic system?
Due to the nature of the business model that is growing exponentially, it makes the Startup business very interesting. both from new generation entrepreneurs and from investors Because normally SMEs want to expand their business to double or grow rapidly. You must invest a large amount or a minimum amount similar to the original capital. But for Startup businesses Then the additional investment will be much less than the original capital. But can grow many times more than before. By using technology and modern management processes to help, such as using applications to help with sales. Create a website or page to be able to promote products or services and sell them to customers all over the world. Create a franchise system to be able to expand (repeat) a large number of branches (leapfrogging). All of this can be done quickly and easily and greatly reduces costs and investment capital. Even though the startup businesses that we see are often related businesses with IT But actually the Startup business It does not have to be an IT-related product or service. It could be any general product or service. There is only the use of technology to help the business grow. It can only grow in leaps and bounds.
