MNC vs Startup: The idea of startups and MNCs surely do fascinate the young minds but there are grave differences between them both and so are the pros and cons related to it.
A startup is a very young company founded by one or more entrepreneurs to develop fresh and unique products or services and bring them to market. Some examples of startups are AirBnB, Pinterest, and LinkedIn. Whereas, an MNC (Multinational Corporation), also called a transnational corporation, are corporations that are registered and operate in more than one country at a time. Microsoft, Apple, and Coca-Cola are some examples of MNC vs Startup.
What is the difference between a startup and an MNC?
MNCs provide better work-life balance, whereas, startups offer much more scope of learning to their employees. If one likes a fast-paced life, then one should choose a startup. But if one likes more structured workplaces, then an MNC can be the best option.
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MNC vs Startup: Pros & Cons
Pros of Joining a Startup
- There is an all-inclusive work environment in a startup. So an employee is involved in the entire process – right from making the initial plans to delivering the final product to the client. Therefore, there is a greater learning opportunity in a startup.
- Since there is a lesser number of people involved in a startup, there is practically less chance of one’s work being ignored by others. Hence, there is better work recognition in a startup.
- Startups do not have a lot of people involved in the day-to-day work hence, every person ought to take up a number of tasks resulting in one multitasking their workup.
- Working in a startup accelerates one to build something from scratch and take complete ownership of one’s own actions. This teaches one responsibility.
- One learns to do everything by themselves and so, almost everybody at a startup is self-taught.
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Cons of Joining a Startup
- Joining a startup can be stressful at the beginning, especially if one’s job description is not clear. One may carry a lot of pressure to do well when it comes to producing quality results .
- There are challenges that a new startup company may face, such as the likelihood of failure when it comes to financial and statistical aspects.
- Being a part of a startup may mean meaning that one has to put in long hours and pick up responsibilities that do not necessarily match with one’s positional rank.
- In most startups, there is a lack of job security.
Pros of Joining a MNC (multinational corporation)
- Working for a larger company offers more career opportunities. In many cases, a multinational company provides jobs all around the world.
- Multinational companies tend to give one a broader environment to work with. One meets diversity while working with people from racially and ethnically different cultures.
- As compared to a start-up, an MNC is more rigid about its rules and regulations and therefore, has a disciplined approach towards work.
- Most MNCs provide their employees with gratuity, provident fund, medical insurance, and other job securities.
- One gets basic training in an MNC on how to go about things. One learns to follow the process, corporate culture, and diplomacy.
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Cons of Joining a MNC (multinational corporation)
- One may have to work a lot but still not get work recognition.
- There is a team prepared for every type of work and so, the different learning opportunities of one decreases automatically.