Confusion Between a Baby and a Dwarf
Your post does a wonderful job of clarifying the essential differences between a Baby (Start-up) and a Dwarf (Small Business). Both are realities and have a place under the sun.
Unfortunately, the buzz today around entrepreneurship has created a false expectation that every time you start a new business it must have the features of a baby. In my opinion, one of the reasons for such a high failure rate of new businesses is due to this false expectation. If you drive a Radio Flyer wagon at the speed of a Racecar, you are going to crash and get hurt.
A new business, that is billed as a small business is considered a Midget, a pejorative term we do not want to be used.
Your clarifying post should be part of every mentors toolkit. It will avoid so many heartburns later!