Working At Big Companies, Small Companies, vs. Startups

When people think about their dream jobs, they usually focus on daily activities. Would they like to become a computer programmer, a lawyer, or a surgeon? Most people don’t consider their dream work environment.

Of course, some jobs require certain locations. Doctors work in hospitals. Farmers work on farms. Society generally frowns upon teaching first grade math classes in hazardous waste disposal facilities.

Most people who aren’t doctors, farmers, or teachers can be more flexible about their choice. Like everything else in life—except fuzzy socks—one size does not fit all. In the end you’ll need to decide for yourself based on your own preferences, personality, life stage, and professional goals. And, as always: every company of any size is unique. Nothing I discuss will apply to every single workplace in its category.

Here, I’ll focus on your choice of company size. For most jobs you have three basic options: corporations, small companies, and startups.

Should you choose corporate life?

There are a few advantages to working for a (good) corporation:

Corporate rules create a predictable work environment. Sure, some big companies have policies or procedures that seem arbitrary. Or stifling. Or outdated. Even outright ridiculous. But a corporation’s employee handbook outlines in detail what to expect; you’ll know how coworkers and the company should behave towards you and vice versa. Work life hums along as smoothly as Earth’s orbit. Well-run big companies set up systems for performance reviews, decision making, and communication.

Resources that corporations can give you enhance your productivity and performance. Need new software? Done. Not quite sure about new responsibilities? Here’s some training. Computer acting up? IT is only one ticket away from computer happiness.

Finally, corporations provide more opportunities for career advancement. They lay out a clear career ladder. More experienced colleagues can mentor you. Your questions, answered. If you want to switch ladders, big companies can move you to a different department or location.

There are a few disadvantages to working for a corporation:

Red tape sloooows down decision making. Decisions pass through multiple people at multiple levels. A lack of clear decision making authority traps your ideas and proposals. The same policies and procedures that protect you, and the company, require you to get multiple approvals. Scrambling for needed information and data uses up valuable time.

Saying corporations are big is like saying oceans are salty. Making it easy to feel like a tiny fish in endless gallons of seawater. You can feel invisible and undervalued by upper management, who are unaware of your accomplishments. There are more people, so more competition for promotions and other opportunities. More people also mean it’s harder for you to stand out.

This problem is even worse for women. Their accomplishments are overlooked, but if they try to talk up their work (and make themselves more visible), they often face backlash at violating stereotypes and expectations about how women should behave. 87.3 percent of women feel their achievements have been undermined, according to a survey by Women of Influence, which is an organisation devoted to empowering women and girls (especially their economic success).

Limited autonomy stifles your creativity. Less control over your work decreases your sense of ownership, responsibility, and motivation. It’s more difficult to make choices that align with your own values and preferences, along with the company’s goals.

Of course, autonomy is a spectrum; it will vary between job roles and level of authority. Which means, you should still consider whether you’ll have room to progress into a position with greater decision making power.

Should you get a job at a small business?

There are a few advantages to working for a (good) small business:

A flexible fast paced environment can increase your creativity and innovation. You need to adapt and respond quickly to circumstances. Many people enjoy challenging and dynamic work. They stay engaged and motivated. This attracts talented coworkers you can learn from. You find more opportunities to think up new innovative solutions, or take on leadership roles.

With a flexible work environment, you’re free to work in a way that suits your needs and preferences. This allows you to work more efficiently and effectively. You’ll be happier. Your mental and physical health will improve if you’re able to balance work with your other obligations and goals.

Small businesses give you the chance to do many tasks or roles. You can more easily blend aspects of different jobs. Careers have become less linear; professional paths are more “squiggly” (as Helen Tupper and Sarah Ellis discuss in their book The Squiggly Career). If you’re interested in a “squiggly” career, sticking to one inflexible role can slow yours down. 

Close working relationships are easier to build. Not just the coworkers in your team, but colleagues in other departments. They’ll invest in your success beyond how much your performance makes their jobs easier. Humans are social animals; we work better together. You’ll find work more fun and positive when employees are friendly. Considering most people spend 20 or 40 hours at work, you’re looking at a large chunk of your life.

There are a few disadvantages to working for a small business

Small businesses have less resources than corporations. Need more up to date software? You might need to just do the best you can with what you’ve got. Not quite sure about how to perform a new task? Figure it out. Look for your own resources. Computer acting up? IT is tiny and has too many tickets, so you’ll have to wait.

A flexible fast paced environment is both an advantage and disadvantage of working for a small business. Employees deal with a lot of pressure. Which leads to stress. Possibly resentment towards your job and/or colleagues and clients. If you can’t get most, let alone all, of your tasks done, you might feel like you failed or haven’t accomplished enough. You neglect parts of your role out of necessity, or just lose interest.

Small businesses bring in less revenue than corporations. Which means they can’t offer as many perks, benefits, or severance packages. Corporations offer more job security (though no one has 100% job security). Because they can’t access much cash, they are more sensitive to economic changes.

Should you step into a startup for your next career move? 

There are a few advantages to working for a (good) startup:

Startups rely on small highly motivated teams. They have no choice. Most startups rely on shoestring budgets. Only a scrappy group of people who truly believe in what they’re doing would be willing to bootstrap to the extent most startups require. They’ll work harder and focus. Their positivity and optimism rub off on you. They’ll show up, instead of putting even more on your shoulders to make up for their absence.

You’ll explore different professions and roles. You’ll see the big picture of how different parts of a business fit together. Most corporate employees never meet their C-suite executives. But at a startup you’ll speak to the CEO frequently. Learning from the best, picking up invaluable advice and business insights. If or when you move on, you’ll find hiring managers impressed that you were involved in a brand new venture. You can confidently describe the mark you left on your coworkers and the company.

Bureaucracy, bloat, and complacency in corporations kill innovation. A startup hasn’t built up red tape. proves it’s innovative just by thriving. They can’t waste time or money on internal red tape or a complex process with multiple decision makers. To stretch the shoestring budget as effectively and efficiently as possible you’re forced to come up with new ways of doing things. You can’t just throw money at problems like corporations.

There are a few disadvantages to working for a startup:

Most startups offer even less job security than a small business. 90% of startups fail. Top reasons? No one in the market needs their product or service, cash flow dries up, or other companies outcompete them. Sometimes the product or service is an amazing brand-new concept, but it’s ahead of its time. Sometimes, perhaps unfairly, a copycat version comes along to win the market. This causes uncertainty. Human brains hate uncertainty, because they constantly update judgments about what’s safe and what isn’t safe. Uncertainty is a synonym for danger according to your mind.

Employees face heavy demanding workloads. Which can destroy work-life balance. It’s more difficult to separate your work life from your personal life. You may not be able to plan your workload and schedule. Another form of dreaded uncertainty.

Heavy workloads lead to stress, which easily morphs into burnout. Chronic stress causes physical symptoms along with mental health problems. Including insomnia, headaches, muscle pain, churning stomach, dizziness, and sweating or hot flushes.

Burnout is created by a chronic state of mental and physical stress. It is a continuous state of emotional exhaustion, detachment from your work, and even depersonalization (which is a feeling that you’re an outside observer of your thoughts, feelings and actions). A burnt out person feels like they’re running on empty–both physically and mentally.

Burnout can develop into full blown depression. It’s important that if you’re ever concerned about your emotional, mental, or physical health due to your job (or for any other reason) you speak to an appropriate professional, such as a doctor or therapist. You can also speak to your boss about possible changes that could help you.

Startups need you to fill multiple roles. Job shifts make you a great generalist. You’ve sampled roles and skills. You might discover you like one role much better than others, and decide to focus on just that profession for your next job. Trouble is, when you look for that new job, you don’t know as much detail about the responsibilities as other candidates do. For example, you may have no idea how to use common software standard in the industry. In a startup you’re less likely to get recognition for specific skills you pick up.

When you specialize in a specific job role you master tasks within that function. You’re less likely to make mistakes. You understand the nuances of the industry. Many employers value and trust specialized employees more because it’s quicker for them to understand the value you bring. You can create a simpler, more straightforward narrative for your CV or LinkedIn profile with defined work skills.

Consider your needs, preferences, and personality before you decide

Corporations offer a predictable work environment, more resources to perform well, and more opportunities for career advancement. Corporate employees can also suffer from red tape and bloated bureaucracy, the “little fish in a big pond” effect, and limited autonomy.

Small businesses provide a flexible fast paced work environment, which can be either a pro, a con, or both. They give you the chance to do many tasks, and make it easier to build good working relationships with your colleagues. On the other hand, they have fewer resources and less revenue than corporations. Which makes them more sensitive to economic changes, resulting in less job security for you.

Startups are exciting and innovative. You’re forced to use your creativity to find new ways of doing things. You won’t find the red tape at corporations. You’ll also face even less job security than at a small business, because most startups fail. Fewer team members mean heavy workloads which can lead to burnout, or even full-blown depression. In a startup you’re forced to become a generalist. This can be a disadvantage, depending on your career goals.

In terms of personality, a corporation would be a good choice for people who value stability, who are comfortable in a work hierarchy with a clear chain of command and set of rules.

A small business would suit someone who wants more autonomy, who would like to impact the company more visibly.

A startup is suitable for people who are comfortable with risk, enjoy fast paced, constantly changing environments, and who want to make a big impact in a short timeframe.

It’s important to balance the pros and cons of your choices before you decide. An amazing workplace for one person would be awful for a different person. A workplace can even be amazing for someone at one stage of their life, but terrible when the same person moves into a different life stage. For example, a father with mouths to feed has different priorities to a single recent graduate mainly looking for something she’s passionate about.

Advice or guidance from others is helpful. But ultimately you know yourself best.