The term “startup” is one we hear all the time and in so many different contexts. So, what is a startup?

There’s no single definition and a lot of smart people have different views on what a startup is and isn’t. What I’m going to do is share how I personally define and think of the term. I’d also like to see your definition and considerations as well, so our viewers here at TPF can get other viewpoints, so please write them in the comments section.

So, here it is: A startup is a group of people that are trying to solve a problem in new and novel ways, with the intent of aggressively scaling the solution.

Let’s unpack this a bit. There are two criteria that need to be met for me to consider a small business (or even non-profit) a startup. 1) They need to be building a product or service that is new and addresses a challenge, and 2) their aim must be to scale said product or service that they’re creating. This second point is key in differentiating it from classic small business entrepreneurship.

The most common appearances of startups is in technology entrepreneurship, where founders are trying to build products or services that fix issues, typically that they themselves have experienced in their lives, and then get to resulting product into as many users’ hands as possible.

For our purposes here, it’s also useful to look at what startups are not. With a very small number of exceptions, startups are not consulting firms or agencies. In those cases, work is done on a tailored basis for an individual customer.

Now, in reality, definitions like this don’t really matter that much. What people should worry about isn’t that something does or doesn’t meet a set of fairly artificial and even arbitrary criteria, but rather that people are building and doing things that meaningfully improve people’s lives, whether that’s creating the world’s next generation of energy storage devices, or providing great service for your community through a local mom and pop shop. While I may consider one a startup, I think both are awesome.