The answer probably depends on where you are located and what industry you are in. The term startup is generally used by tech companies in population hubs like San Fransisco, New York, Boston, LA, Austin that are “in the know”. The term small business is often used by your everyday Joe that is just trying to get something started (most likely out of his home). Home based businesses get a bad rap in the startup world but most companies (especially web companies) are started in a young entrepreneurs apartment (same as home).