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Not all startup companies are created equal. Although both innovation-driven enterprises (IDEs) and traditional small- and medium-sized enterprises (SMEs) can provide valuable products and services and create jobs, IDEs – startups focused on addressing global markets based on technological, process or business model innovation – can potentially create hundreds or even thousands of high-skill jobs if they succeed.This paper examines the distinctive differences between these two forms of entrepreneurial ventures, their importance for governments and policymakers wanting to support long-term economic growth; their roles in local, regional and global economies; and their differing needs in terms of financial and policy support.

A Tale of Two Entrepreneurs: Understanding Differences in the Types of Entrepreneurship in the Economy