Business startups are considered a riskier employer, but they often offer more than companies with traditions.
Business startups are flexible and it is not an exception that what they provide for their employees is much better than the benefits and compensation an established corporation offers.
Business Startups Value Creativity
For many job seekers, business startups are top employers because they give freedom and value creativity. That is why many job seekers are interested mainly in offers from business startups.
No matter what the industry is, business startups usually have one advantage in common – a more informal and relaxed atmosphere. Very often, business startups don’t have thick guides of formal rules one must strictly follow, and this leaves room for improvisation and creativity, which is highly valued by many employees.
One more advantage of business startups is that, as a rule, the promotion opportunities in a startup company are greater than the promotion opportunities in a company with traditions. If the business startup does well, usually the people who were part of it in the beginning get promoted, while in a company with traditions it might take decades till one is offered a low management position. In terms of career development a business startup can be very, very rewarding.
As for compensation, startup companies can be very generous. There are many cases when a startup company pays better for a comparable position than an established corporation.
The Problem with Business Startups? They Grow into Corporations!
Business startups tend to be very dynamic, which certainly is not a characteristic valued highly by anybody who loves predictability. Though it is not an exception for a business startup to go out of business, many startup companies do make it. In fact, many of today’s huge corporations started as small business startups and grew over the years.
When a business startup grows into a corporation, this kills the informal atmosphere. Sure, one can’t say that growing into a corporation is the beginning of the decline of a startup, but certainly when a company grows, this changes the rules.
When a business startup turns into a corporation, many of its founding members resign and move to greener pastures – i.e. they find a venture capital fund and create a new startup company. When this business startup also grows into a corporation, they again move on. For many individuals, the corporative spirit is just way too much to stand and establishing (and working for) small business startups is a way of life.
A startup could be riskier in terms of job security, but the benefits it offers are not to be neglected. On the other hand, large corporations are not necessarily more secure (just a look at layoff news is enough to get an idea of the numbers of employees released), so even if one is willing to trade freedom for security and join an established corporation, her or she might be out of luck and soon be unemployed again.