A start-up is a company that is just beginning to develop. Startups are usually small and financed and operated by a quiet number of founders or one individual. These companies offer a product or service that is not currently being offered elsewhere in the market, or that the founders believe is being offered in an inferior manner.
A startup that can prove its potential may attract venture capital financing in exchange for giving up some control and a percentage of company ownership.,
According to serial entrepreneur and Silicon Valley legend Steve Blank, a start-up is a “temporary organization designed to search for a repeatable and scalable business model.”
FEATURES OF A START-UP
Company – new, recently created.
Innovation – To differentiate from the competition, startups need to be very innovative.
Growth – start-ups need to grow quickly.
Team – the environment requires small team, with little experience but a lot of skill and speed.
Structure – at the beginning, they are unstructured and virtually with no hierarchy and managers.
Resources – Economic, human and physical resources in startups are usually extremely limited. Generally need financial resources from investors.
Partnerships – Startups need to focus on the product / core-business, using wherever possible third-party components to develop the product, which includes platforms, APIs, Open Source software, etc. And also outsourcing some activities.
Adaptability – Startups often are dynamic and able to react quickly to market changes, new technologies and competitive products.
SMALL AND MEDIUM ENTERPRISES
Small and Medium Enterprises contribute meaningfully to the economic development. They are in the forefront of output expansion, employment generation, income redistribution, promotion of indigenous entrepreneurship and production of primary goods to strengthen industrial linkages. SMEs are important for economic and social reasons, given the sectors role in employment. Due to their sizes, SME are heavily influenced by their Chief Executive Officers. The CEOs of SMEs often are the founders, owners, and manager of the SMEs. The duties of a CEO in SME is difficult just like the CEOs of big companies. A CEO needs to strategically allocate her/his time, energy, and assets to direct the SMEs. Typically, the CEO Is the strategist, champion and leader for developing the SME or the main reason for the business failing.
SMEs are often given incentives and more favourable tax treatment because of their contribution to the economy and their generally greater difficulty in obtaining financing and their higher fixed cost of taxation and regulatory compliance.
FEATURES OF SMES:
- Dependence on Employees
- SME relies very heavily on existing partnerships and may suffer financially if a relationship is terminated.
- The SME is a simple business structure, which allows the company to be very flexible.
- The small size of the business can be an advantage when it comes to specialization and filling niche markets with products.
Start-ups and SMEs are potentially huge contributors to the Nigerian Economy. But what do they even mean exactly?
What does ENGAGE set out to achieve?Are you a small business owner, a start-up or you are looking at starting up a business?
Are you seeking knowledge with respect to the legal requirements that will help your business stay afloat, and that must be satisfied to help it kick-off?
Do you seek understanding with respect to how the law affects your business?
Then ENGAGE is for you!
The Facilitators include :