The article (and most of HN) refer to the local Silicon Valley jargon definiton of the word "startup": a company that is meant to grow extremely fast through the use of new technology. It's not a synonym for any entreprenurial venture.

What you're talking about is locally called a "lifestyle business" (not a "startup") -- a small business that can provide a comfortable living for the founder and a few employees, but which has essentially zero longer term growth prospects.

This point seems to be the source of much confusion in the comments here.