Getting above the Karman Line (100km above sea level) and getting into orbit are dramatically different problems. In case the name "Copenhagen Suborbitals" didn't make it clear, they're shooting for the former.
For an amusingly-illustrated take on this, see the recent http://what-if.xkcd.com/58/
As another piece of context, compare the size of the rocket used by Scaled Composites (to win the X-Prize) with the size of rocket used by SpaceX. What's the difference? One can orbit, and the other cannot.