Logo

Global Thriving

Entrepreneurs Network

Logo
  • Home
  • Comments
Profile image

Murali Selvaraj

19 min read

.

Sep 29, 2025

Clap icon

0

Comment icon

0

Entrepreneurship vs. Startups — A Beginner’s Guide

When I started my company some of the meetups people asked me, yours is a startup? Before that I knew only business, at that time I didn't know what a startup was in 2007. When people hear the words entrepreneur and startup, they often think they mean the same thing. But in reality, there are key differences. Let’s break this down in a way anyone can understand, with some practical examples.later i too learn about startups and its structures 

Entrepreneurship vs. Startup: Side-by-Side

AspectEntrepreneurshipStartup
DefinitionIndividual creating/running a businessYoung business aiming for rapid growth
FocusEntrepreneur's vision or problem-solvingScaling quickly and market capture
RiskHigh - entrepreneur bears success/failureHigh - most fail without proper management
FundingSavings, loans, or investorsInvestor money, grants, venture capital
Decision-makingControlled by entrepreneurFounders + investors/board influence

👉 Example:

Both involve risk, but the goals and scale are very different.

Key Idea

What is a Startup?

A startup is a business at its very beginning. Founders often invest their own savings or raise funds from friends, family, or angel investors.

Unlike traditional businesses, startups don’t expect profits immediately. Instead, they focus on:

👉 Think of a startup as a sapling. You don’t expect fruit right away — the focus is watering it, protecting it, and helping it grow strong.

Types of Startups

TypeExplanationExample
Scalable StartupsBuilt on innovative ideas with high growth potentialZomato, Swiggy
Small Business StartupsRun for survival or stable income, often family-runA local kirana shop expanding into online orders
Lifestyle StartupsPassion-driven ventures built around personal interestsA yoga trainer launching an online wellness course

How Startups Work (Step-by-Step)

1. Idea Generation → Spot a problem (e.g., difficulty booking cabs).
2. Validation → Check if customers really want a solution.
3. Business Planning → Create a roadmap (how you’ll earn, market, and grow).
4. Resource Acquisition → Get funds, hire a team, buy tools.
5. Build the Product/Service → Launch a test version (prototype).
6. Market & Sell → Attract users/customers.
7. Grow & Expand → Improve, add features, and scale.

N ot only this we have 4c,4p, fivep,BMC, Smart GOAL, lot of new formula fit for this startups

👉 Example: Ola started with a few cars in Bangalore. Today, it operates across India with millions of drivers. The process was step-by-step.

How to Start a Startup in India (Simple Guide)

StepWhat You Need to Do
1. Define IdeaSolve a real problem (e.g., online medicine delivery)
2. Market ResearchStudy customer demand & competitors
3. Register BusinessLegal setup via MCA/ROC
4. Secure FundingAngel investors, VCs, crowdfunding, or personal savings
5. Build a TeamHire skilled people who share your vision
6. Launch & GrowStart small → test → improve → expand

Funding Options for Startups

Source DrHow It WorksExample
Personal SavingsUse your own money to startMany home bakers begin this way
Angel InvestorsWealthy individuals invest in return for equityEarly investors in Flipkart
Venture CapitalistsFirms that fund high-growth startupsSequoia, Accel in India
CrowdfundingRaise small funds from many people onlineKickstarter-style platforms
Bank LoansTraditional funding with repayment obligationsMSME loans in India
GrantsGovernment/non-profits offering money for innovationStartup India Seed Fund

Case Study: Airbnb

Best Practices for Startups

  1. Solve a real problem (not just a “cool idea”).
  2. Be passionate — startups are marathons, not sprints.
  3. Build a strong, motivated team.
  4. Take calculated risks — not blind bets.
  5. Collect and act on customer feedback.
  6. Stay agile — pivot if something isn’t working.

rds entrepreneur and startup, they often think they mean the same thing. But in reality, there are key differences. Let’s break this down in a way anyone can understand, with some practical examples.

Entrepreneurship vs. Startup: Side-by-Side

AspectEntrepreneurshipStartup
DefinitionAn individual (entrepreneur) who creates and runs a businessA young business in its early stage, usually aiming for rapid growth
FocusThe entrepreneur’s vision or solving a problemScaling quickly and capturing market share
RiskHigh – the entrepreneur personally carries the success/failureHigh – startups disrupt markets, most fail if not managed well
FundingMay use savings, loans, or investorsUsually seeks investor money, grants, or venture capital
Decision-makingControlled by the entrepreneurInfluenced by founders + investors/board

👉 Example:

Both involve risk, but the goals and scale are very different.

Key Idea

What is a Startup?

A startup is a business at its very beginning. Founders often invest their own savings or raise funds from friends, family, or angel investors.

Unlike traditional businesses, startups don’t expect profits immediately. Instead, they focus on:

👉 Think of a startup as a sapling. You don’t expect fruit right away — the focus is watering it, protecting it, and helping it grow strong.

Types of Startups

TypeExplanationExample
Scalable StartupsBuilt on innovative ideas with high growth potentialZomato, Swiggy
Small Business StartupsRun for survival or stable income, often family-runA local kirana shop expanding into online orders
Lifestyle StartupsPassion-driven ventures built around personal interestsA yoga trainer launching an online wellness course

How Startups Work (Step-by-Step)

  1. Idea Generation → Spot a problem (e.g., difficulty booking cabs).
  2. Validation → Check if customers really want a solution.
  3. Business Planning → Create a roadmap (how you’ll earn, market, and grow).
  4. Resource Acquisition → Get funds, hire a team, buy tools.
  5. Build the Product/Service → Launch a test version (prototype).
  6. Market & Sell → Attract users/customers.
  7. Grow & Expand → Improve, add features, and scale.

👉 Example: Ola started with a few cars in Bangalore. Today, it operates across India with millions of drivers. The process was step-by-step.

How to Start a Startup in India (Simple Guide)

StepWhat You Need to Do
1. Define IdeaSolve a real problem (e.g., online medicine delivery)
2. Market ResearchStudy customer demand & competitors
3. Register BusinessLegal setup via MCA/ROC
4. Secure FundingAngel investors, VCs, crowdfunding, or personal savings
5. Build a TeamHire skilled people who share your vision
6. Launch & GrowStart small → test → improve → expand

Funding Options for Startups

SourceHow It WorksExample
Personal SavingsUse your own money to startMany home bakers begin this way
Angel InvestorsWealthy individuals invest in return for equityEarly investors in Flipkart
Venture CapitalistsFirms that fund high-growth startupsSequoia, Accel in India
CrowdfundingRaise small funds from many people onlineKickstarter-style platforms
Bank LoansTraditional funding with repayment obligationsMSME loans in India
GrantsGovernment/non-profits offering money for innovationStartup India Seed Fund

Case Study: Airbnb

👉 Lesson: A small idea + persistence = global success.

Best Practices for Startups

  1. Solve a real problem (not just a “cool idea”).
  2. Be passionate — startups are marathons, not sprints.
  3. Build a strong, motivated team.
  4. Take calculated risks — not blind bets.
  5. Collect and act on customer feedback.
  6. Stay agile — pivot if something isn’t working.

Alright, let's get this rewritten for you, aspiring entrepreneurs! Here's that guide on entrepreneurship versus startups, delivered with a mentor's perspective:

Entrepreneurship vs. Startups — A Mentor's Guide for Aspiring Founders

When I started my company, people often asked, "Is yours a startup?" Back in 2007, the term "startup" wasn't as common as "business." It's a common misconception that entrepreneur and startup are interchangeable. But trust me, there are crucial distinctions that every founder needs to grasp. Let's break it down simply, with real-world examples.

Entrepreneurship vs. Startup: A Side-by-Side View

AspectEntrepreneurshipStartup
DefinitionAn individual (you, the entrepreneur!) who creates and runs a businessA young business in its early stage, usually aiming for rapid growth and scalability
FocusYour vision, solving a problem, and creating valueScaling quickly, capturing significant market share, and often disrupting an industry
RiskHigh – you personally carry the success or failure of your ventureHigh – startups are designed to disrupt, and many will fail if not managed with extreme agility
FundingMay use personal savings, traditional loans, or private investorsTypically seeks external investment: angel investors, grants, venture capital
Decision-makingLargely controlled by you, the entrepreneurInfluenced by founders, but also by investors and board members

👉 Example:

Both paths involve significant risk, but your goals and the scale of your ambition will dictate which path you're on.

The Core Idea

So, What Exactly is a Startup?

A startup is a business in its nascent stages. As founders, you'll often put in your own savings or raise initial capital from friends, family, or angel investors.

Unlike traditional businesses that seek immediate profitability, startups prioritize:

👉 Think of your startup as a sapling. You don't expect fruit on day one. Your focus is on nurturing it, protecting it, and ensuring it develops a strong, expansive root system.

Types of Startups You Might Encounter

TypeExplanationExample
Scalable StartupsBuilt on innovative ideas with high growth potential and a clear path to expansionZomato, Swiggy – aiming for widespread impact
Small Business StartupsOften run for survival or stable income, frequently family-owned, but still starting anewA local kirana shop expanding into online orders – a new venture, but with a different growth trajectory
Lifestyle StartupsPassion-driven ventures built around personal interests, offering flexibility and autonomyA yoga trainer launching an online wellness course – leveraging personal passion into a business

How Startups Work: Your Step-by-Step Journey

  1. Idea Generation → Spot a genuine problem (e.g., the hassle of booking cabs).
  2. Validation → Crucially, verify if customers truly desire and need your proposed solution.
  3. Business Planning → Craft a clear roadmap: how will you generate revenue, market your offering, and achieve growth?
  4. Resource Acquisition → Secure funding, build your core team, and acquire necessary tools.
  5. Build the Product/Service → Develop and launch a minimum viable product (MVP) or prototype for testing.
  6. Market & Sell → Attract your initial users and customers.
  7. Grow & Expand → Continuously improve, add features, and scale your operations.

Beyond these steps, you'll encounter frameworks like 4Cs, 4Ps, 5Ps, Business Model Canvas (BMC), and SMART goals – all valuable tools in your startup arsenal.

👉 Example: Ola began with just a few cars in Bangalore. Today, it's a giant operating across India with millions of drivers. This wasn't an overnight success; it was a meticulous, step-by-step process.

Starting a Startup in India: Your Simple Guide

StepWhat You Need to Do
1. Define IdeaSolve a real problem (e.g., efficient online medicine delivery).
2. Market ResearchThoroughly analyze customer demand and your competitive landscape.
3. Register BusinessHandle the legal setup through MCA/ROC.
4. Secure FundingExplore angel investors, VCs, crowdfunding, or leverage personal savings.
5. Build a TeamRecruit skilled individuals who genuinely share your vision and passion.
6. Launch & GrowStart small, test rigorously, iterate based on feedback, and then expand strategically.

Funding Options for Your Startup

SourceHow It WorksExample
Personal SavingsUsing your own capital to kickstart the ventureMany home bakers begin this way, funding their initial operations
Angel InvestorsWealthy individuals who invest in exchange for equity, often providing mentorship tooEarly investors in Flipkart saw the potential and backed it
Venture Capitalists (VCs)Firms that fund high-growth startups with significant capital, expecting substantial returnsSequoia, Accel – major players in the Indian startup ecosystem
CrowdfundingRaising smaller amounts of funds from a large number of people onlinePlatforms like Kickstarter allow many individuals to contribute to your idea
Bank LoansTraditional funding with repayment obligations, often suitable for established businesses or those with collateralMSME loans in India can be a viable option for certain startups
GrantsGovernment or non-profit organizations offering money for innovative projects, often without equity dilutionThe Startup India Seed Fund is a great example, supporting early-stage innovation

Case Study: Airbnb – A Lesson in Persistence

👉 The Lesson: A seemingly small idea, combined with relentless persistence and adaptability, can lead to global success.

Best Practices for Your Startup Journey

  1. Solve a real problem. Don't just chase a "cool idea." Your solution must address a genuine pain point.
  2. Be passionate. Startups are marathons, not sprints. Your passion will fuel you through the inevitable challenges.
  3. Build a strong, motivated team. Your team is your greatest asset. Surround yourself with people who share your vision and complement your skills.
  4. Take calculated risks. Don't make blind bets. Analyze, strategize, and understand the potential downsides before you leap.
  5. Collect and act on customer feedback. Your customers are your compass. Listen to them, learn from them, and iterate based on their insights.
  6. Stay agile. The startup landscape is constantly changing. Be prepared to pivot if something isn't working, and adapt quickly to new information.

Comments

No comments yet.