The store could continue to do well with just a few locations, or it could develop a new model or approach to shoe-selling that propels it to national prominence. In other words, it can evolve into a successful small business or it can make the leap to an entrepreneurial growth company. This is in contrast to the most popular small-business sectors, such as construction, retailing and cleaning services. Many fast-growing startups, in their earliest stages, often are indistinguishable from small businesses. Once these startups take off in their growth stage, that's where all similarities end.
Risk is an intrinsic part of any business venture.
It is only later on in the development of the company, when the business has created some real value, that entrepreneurs risk losing it all if they are to continue growing. Having a breakthrough invention, a unique product or a radically new process is not a necessary element at the beginning of most successful growth companies. There are exceptions, like Federal Express, which was started in the 1970s on the then-unheard of idea of creating a worldwide system of transportation dedicated to providing overnight delivery of packages. While founders of successful companies may become knowledgeable and prominent in their field later on, early-stage growth companies are just as likely to be started by relative amateurs with little background experience in the field. A full 40 percent of Inc. 500 founders had no prior experience in the industry they were entering, according to NCOE research.