Start-up is a young and newly formed company or enterprise, often with a innovative business model or unique technology. on the other hand, MSME is aSmall and Medium Enterprises which is defined by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
Difference between start up and MSME:
Age of the company: Start-ups are young and newly formed companies whereas MSMEs can be of any age.
Nature of business: Start-ups usually have an innovative business model or unique technology. MSMEs can be of any nature.
Size: Start-ups are usually small in size with a limited number of employees. MSMEs can be of any size.
Funding: Start-ups are often funded by venture capitalists or angel investors. MSMEs can be self-funded or funded by banks or financial institutions.
Purpose: The purpose of a start-up is to grow and scale rapidly. The purpose of an MSME is to provide employment and generate income.