What characterizes a start-up company?

A start-up company is characterized primarily by its focus on rapid growth and innovation. Start-ups are typically new ventures that are often created to develop a unique product or service and seek to scale quickly to capture market share. They operate in an environment of uncertainty and are often looking to disrupt existing markets or create new ones.

This emphasis on rapid growth is crucial because start-ups aim to attract investment to fund their development and expansion, which distinguishes them from established corporations that have already solidified their market position and history. Unlike non-profit organizations or government-funded initiatives, which serve different purposes and operate under different constraints, start-ups are profit-driven and typically begin as small businesses with the ambition to grow significantly in a relatively short period of time.