A start-up basically refers to a newly established business.
However, this is slightly too simple a definition as a start-up is really a company that is beginning to develop, initially financed either by an individual or a handful of founders.
Typically these companies are aiming to offer a service or product that is not being offered by someone else, or are trying to improve an existing service offered by other companies, but in a better way.
One example of this is in the area of financial services where numerous companies, often referred to as a fintech company. These start-ups have been using technology to improve the services that banks offer.
Often start-ups are using technology in a way that others may not have thought of before, such as applying data analytics to customer service so that a personalised view of the customer can be generated.
Start-ups typically struggle when they are a new company as expenses often exceed revenues as they work on developing, testing, and marketing their ideas.
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