Logo - Business Development Bank of Canada - BDC

Start-up

A start-up is a business in the earliest stages of getting established. Companies may stay in start-up mode for as long as three years.

Start-ups take many forms. They may:

  • Be sole proprietorships, general partnerships, limited partnerships or corporations
  • Sell an established product or service, or a new product or service
  • Sell to an established market or a new one
  • Operate domestically or internationally
  • Meet new market needs
  • Answer an existing market need created by the departure of a company that previously met that need
  • Arise in any industry, existing or new
  • Be launched by someone with or without prior business experience
  • Be fully funded or require investor funding

If a first-time entrepreneur buys an existing business, the business is not considered a start-up.

More about start-ups

Canada produces the same number of start-ups annually as other countries with similar success rates. However, fewer Canadian start-ups grow into “mid-market companies,” that is, larger, more mature businesses. This is mainly because Canadian entrepreneurs often sell their start-ups to foreign investors, who then take on the risk associated with growing to a mid-market size and beyond.

Your privacy

BDC uses cookies to improve your experience on its website and for advertising purposes, to offer you products or services that are relevant to you. By clicking ῝I understand῎ or by continuing to browse this site, you consent to their use.

To find out more, consult our Policy on confidentiality.