Do not confuse startups with SMEs (small-medium enterprises). One major difference between small-medium enterprises (SME) and start-ups are profits. A start-up is first established to bring a new business idea into existence. Whereas small-medium enterprises (SME) are established for profit only. SMEs range from setting up a shop to setting up a medium level power plant.
An SME is more permanent, and it starts out with a structured organisation that focuses on the delivery of value to its already-known customers. An SME does not need to change its business model. This means, at this stage, an SME is established with a stable and successful business model.