What Is a Startup? A Temporary Organization Aiming for Rapid Growth in a Short Time

For the startups mentioned above, Taiwan commonly uses the Chinese term xinchuang gongsi (“new venture company”). I found an interesting definition: a startup is a #TemporaryOrganizationAimingForRapidGrowthInAShortTime. A startup’s objective is to actively exploit uncertainty in the world to achieve rapid growth in a short time. Even a newly established company therefore cannot be called a startup if it does not aim for rapid growth in a short time. A company aiming only for steady growth is an ordinary newly established business. Restaurants and hair salons, for example, have difficulty meeting this definition. Their growth ceilings largely depend on the size of their premises, spending per customer, and repeat business. Companies independently creating products using IT or technology, by contrast, have the potential to become startups because their products could be used by large numbers of people worldwide. But using IT and technology does not automatically make a business a startup. Outsourcing companies that build software to meet individual customers’ requirements also have growth ceilings largely determined by average customer spending. The key to being a startup is therefore whether rapid growth is the objective. There is no inherent superiority or inferiority between startups and ordinary newly established companies. Their main difference is the goals they pursue.