What I don't understand is why every single startup has to be around some web 2.0 software idea. There are thousands of industries outside of software for MBA students to pursue. If you're a good businessman, you shouldn't pigeonhole yourself into a position where you have no expertise, that's just bad judgment.
I think in general the distinction is that a startup can scale more readily than a small business. That's easier to do if you're selling software than, say, haircuts which is why I think the term "startup" is used so much around here.
I think there's also an element of the entrepreneurial mindset on HN. The term "small business" seems to be considered implicitly defeatist here, unless you're (merely) building a "lifestyle business" which excuses your lack of ambition!
I've found that the best definition for "startup" that I've come up with is that a startup is a business that seeks a future liquidity event. A web company that is one guy's lifestyle business selling tv stands isn't a startup any more than a small family owned restaurant. But a restaurant chain like Chipotle is a startup -- at least, until they were bought by McDonalds.
Thus there are startups in and outside the tech world.
Not every MBA is doing this. A number of my MBA classmates are getting into things like bio-tech, micro-sensors and other kinds of industries, where their background matches research developments in the University.
But if you have an interest and passion for a particular software idea (that meets a strong customer need), then I say go for it.
That's what I'm doing. Though I'll admit to having a decent bit of programming experience a number of years back, it's been a while and I'm rusty enough that I'd prefer to partner with a real coder who will be much more productive while I concentrate on the business aspects.
Agreed. Its a lot easier to make another Google where it reaches billions of people compared to a car manufacturer who only can reach to places he can ship.
