Why does innovation stop at startups

Don’t call it startup! Why start-up founders are different.

Don´t call it startup! Yes, please, stop calling every company a start-up!

The hip term “start-up” is degenerating into a buzzword and, unfortunately, is still used too often incorrectly. As banal as it may sound, even decision-makers on a political or economic level often use the term intentionally or unintentionally in the wrong context.
For marketing or the press, a normal start-up center or co-working space quickly becomes a hip “start-up center”. Or the successful local founder in retail is sold to the press as a “successful start-up in the region”. Therefore, for many, every company formation is meanwhile a "start-up". Regardless of whether it's the new craft business or the new hairdresser around the corner. That doesn't do it justice. Precisely because, in my opinion, the right promotion of start-ups and innovations is one of the most underestimated topics - despite the billions of dollars announced by the federal government - for securing Germany as a business location in the future.
So let's take a closer look at what actually distinguishes a start-up from a traditional start-up.

Let's take a look at Wikipedia:"A start-up company (from English to start up =" to found, to set in motion ") is to set up a company with an innovative business idea and high growth potential."
Ok, that could theoretically also apply to some classic start-ups. Therefore this definition does not go far enough for me. In the case of good and then successful start-ups, the innovation goes so far that well-known structures are broken up and changed through disruption (complete restructuring or dismantling of the existing business model). Startups are also usually set up with the aim of growing quickly. For this, scalable and, today, above all digital business models are necessary and important. Therefore, almost all successful internet companies like Google, Facebook, Amazon, Twitter and YouTube were originally start-ups. Internationalization is often part of the business model and, at least in the medium term, a fixed goal.

Classic start-ups are therefore not a start-up as they violate one or more of these definitions:

  • rapid growth is not their goal
  • they use proven business models
  • they are offering a well-known product
  • they don't do anything really new

And so the mentality of a start-up founder differs from the mentality of a classic founder:The start-up founder is driven by innovation and thus shaped by the desire to create something completely new and to rethink and use markets. He looks for a problem that, ideally, no one has solved yet and rethinks markets with new ideas and approaches that previously seemed impossible to others. The later successful exit (sale) is also more in the foreground for start-up founders than for classic founders.
For these reasons, I like the term entrepreneurship better for start-up founders. The term is often translated as entrepreneurship or entrepreneurship. In contrast to the classic manager, according to Joseph Schumpeter, an Austrian economist, an entrepreneur is someone who wants to create new things and change old structures with courage, risk and innovative business ideas.

That’s it - have a nice day and good "CORNEXIONS"!