Should you work at a startup or a corporation? How to decide

Startups and corporations are known for being the top employers for tech professionals. Both offer advantageous characteristics for employees to choose from, but which one comes out on top? We’ll cover this and more in this guide to choosing between a startup vs. a corporation.

While there’s no right or wrong answer for where you should work, many tech employees are making the shift from corporations to startups. This could be because of remote work flexibility or better offerings at startup companies, but where an individual will find success depends on their work style and habits.

What differentiates startups from corporate companies

The main difference between startups and corporations is their age and the number of employees which ultimately creates different organizational cultures at each enterprise. Startups are defined as early-stage businesses with up to 50 employees. Their main goal in the early stages is to launch their product or service with the help of funds from investors.

On the other hand, corporations can have hundreds if not thousands of employees that have already launched their product or service. This gives them the ability to invest in organizational structure and defined roles for each of their employees.

Characteristics of startups

If you’ve never worked at a startup before, you might be wondering what they’re like. Working at a startup typically means you’ll wear many hats with a broad scope of responsibilities. They’re also known for having smaller teams with limited resources for mentorship and organizational structure. A huge startup draw for employees is that they can get access to potentially high-value stock options pre-IPO.

What to know about corporations

Since there are more corporations than startups out there, you’re probably more accustomed to what a corporate job looks like. Many professionals prefer the stable benefits and salary that they would have at a corporate company. This type of work environment has the resources for strong mentorship and role models within the company, as well as clear roles and responsibilities for each position. The strong structure and leadership can be a result of mature investors or board of directors which helps these larger companies accomplish huge, long-term goals.

Pros and cons of working at a startup

Assessing the advantages and disadvantages of working at a startup company can help you uncover the next step in your career. Read below to see the pros and cons of startup culture.

Pros of startups

Startups offer a lot of draws, like stock options and remote work flexibility. Since they work on smaller teams, you’re able to see the difference you’re making with your work — especially since the projects are more short-term. You’ll also be able to learn a multitude of different skills in a short amount of time in addition to being able to move up the leadership ladder quicker than you would at a corporation.

Cons of startups

Since startups are typically very new, there will likely be a lot of multitasking and working on several different projects at once. While some prefer this sort of day-to-day excitement, it might not be the right fit for some. Other disadvantages of startup culture are that there’s less emphasis on company structure like training, growth tracks, and mentorship.

Pros and cons of working a corporate job

If you’re on the fence between a startup and a corporate job, the pros and cons of working at a corporation might help clarify where you’ll fit best.

Pros of corporations

Companies that have existed for some time offer a lot of advantages like offering their employees a stable salary and benefits package. Although you might not get the 5-30% equity that startups offer their employees, you can still get access to stock options at a corporate company on a different scale. Last but not least, you’ll be able to find mentors and role models given the strong leadership structure and company organization characteristic of corporations.

Cons of corporations

Tech professionals switching from corporations to startups comes as no surprise: there are some disadvantages of corporate jobs that some employees would rather do without. It’s often said that while startups move fast, corporations can move slowly. Mature companies can take months to launch certain projects since there are much more moving parts. Another con of working at corporations is that they often use older software or technology that can make work less efficient. Finally, corporate jobs have a more narrow scope of work since most roles are specialized.

Deciding between working at a corporate company or a startup really comes down to personal preference and your career goals. If you’re looking to learn a lot of skills and grow your resume or portfolio quickly, a startup may be right for you. Still trying to decide? Check out this flowchart from AngelList to uncover the next step in your career.