[ejames]

Part of it is a terminology problem. It's now common for any small business in the software industry to claim to be a "startup", even if it's actually a glorified consulting agency or contract software shop.

Part of it is an integrity problem. In addition to describing your small business as a startup for marketing purposes, you might also call yourself a startup in order to make other claims - such as telling employees that their stock options are extraordinarily valuable, or making a rule that everyone must work 80 hours "just like the other startups".

The flip side of the principle that exceptional businesses require exceptional effort is that almost all businesses are not exceptional.