Career choices for both newbies and established professionals can be confusing. There is always a toss-up between working for an MNC vs working for a startup. It is a classic battle as to which is the better workplace and which has the potential to take one’s career to new heights. Both types of organizations offer unique work experiences and are very different in terms of work culture, environment, growth potential, and opportunities. Your experience and expectations largely determine which type of organization you will choose. Let us examine various criteria to understand startups and MNCs better.

Startup vs MNC – Know the Differences

1. Company size and structure

Obviously, a multinational company is big in size because of its presence across countries and its huge employee strength. The startup, on the other hand, is small in terms of size and employee strength. MNCs have well-defined hierarchical structures, unlike Startups, which are small, agile, and have a flat organizational structure.

2. Work Culture

MNCs have a formal work structure which can be rigid at times with well-defined roles and responsibilities. They have great, established brand value as a workplace, whereas startups offer in-depth and real-time exposure. The work culture with startups is informal and career growth is unpredictable. Startups, however, have a more flexible and dynamic work environment with lots of collaboration and cross-functional roles. This allows employees to wear multiple hats and work on areas outside their area of expertise thereby allowing employees to develop a broad skill set. Startups also have open communication, and the founders and executives are more accessible.

3. Job security and stability

Job security and stability are a concern for every candidate seeking employment. MNCs have established business models and steady revenue streams and they have built a strong customer base and are less vulnerable to market fluctuations. They, therefore, offer a very stable and secure environment to work in. In contrast, startups are considered less stable and riskier. They are more vulnerable to market fluctuations and various issues like funding drying up and cannot offer stability.

4. Career growth and learning

Both startups and MNCs offer great opportunities for learning. MNCs have structured learning programs that allow employees to develop their skills and grow in the organization. Learning happens when large initiatives are undertaken by MNCs, which can be very valuable. Startups, on the other hand, allow you to work on areas that you have no expertise in, so the ability to learn new skills is very high in startups. They have a fast-paced and dynamic work environment, so you will learn adaptability and a sense of urgency. Learning is very broad-based in a startup and everyone is learning together irrespective of the hierarchy.

5. Compensation and benefits

The biggest benefit of working in an MNC is their compensation and benefits program. Things like healthcare, retirement plans, paid time off, sharing of bonuses and ESOPs are very valuable for employees of MNCs. Startups, on the other hand, offer the benefit of stock options, which can bring in huge benefits when the company goes public. So, while you must put in effort and can rise the ranks in a startup, in an MNC, you will be overwhelmed with perks and incentives.

6. Innovation and creativity

Startups lead with innovation and provide an exciting, creative, and dynamic environment to work in. Since they normally work in areas that are focused on developing new products, the work lends itself to a high level of innovation and creativity. The MNCs, in contrast, are focused on maintaining the status quo and optimizing existing products and services. Startups are a great place to work for people who are exploring new ideas.

7. Work-life balance

MNCs have a structured work-life balance, which leads to predictable work hours, whereas startups have a dynamic and fast-paced work environment, which leads to long work hours that can be stressful.

Pros & Cons of Working in a Startup

Pros

• Growth opportunities
• Great autonomy and recognition for work done
• Creative freedom

Cons

•     Financial instability
•     No work-life balance with long working hours
•     Lack of infrastructure

Pros & Cons of Working in an established MNC

Pros

• Stability and a well-defined career path
• Established processes
• Solid reputation

Cons

• Slow career progression
• Limited autonomy
• Less creative freedom

If you are looking for job security, then an MNC is your best bet whereas if you are looking for a gateway to start your own enterprise, then you must be employed in a startup which will give valuable lessons.

Startup vs MNC: Making the Right Career Choice

Startups and MNCs offer completely different work environments, so it is a tough choice to choose one as a career option. However, this choice should be made based on one’s personal priorities and personality. MNCs are lucrative and offer more perks, while startups may be a valuable option for those looking for a learning environment that is also fast-paced.

Frequently Asked Questions