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Arya College Cousellor Arun Arya

Prof. (Dr.) Arun Arya

Contact for Admission

Arun College Cousellor Arya

Prof. (Dr.) Arun Arya

Startups vs MNCs: What to Choose for Your First Job?

What is a Startup?

As the name suggests, startups are businesses that are just starting up. Generally, startups begin with some unique ideas and end up hitting the market as a well-planned business model that aims at turning things around in their favor with their unique ideas and strategies that will help them to upscale themselves. They aim to take out the gaps present due to existing products in the market by filling them up with innovative and scalable ideas.

Startups make money by generating high evaluations based on the future demand and sales of their product, thus offering high returns on investments. Startups come with a lot of risk factors but are balanced out by the great perks they offer While working for a startup company, you have excellent learning opportunities, get in-depth exposure to the industry, explore innovative business models, and many advantages.

What is an MNC?

An MNC or a Multi-National Company is a well-established forum that mainly operates from its country of origin and has its roots spread over the globe also MNCs are generally referred to as the corporate world. These are huge companies and are considered to be industry leaders. They already have a strong foundation and follow a certain set of rules and procedures for operating. Their work methodology is generally considered to be the opposite of the startup culture. 

MNCs work with predefined plans for everything, from production and marketing to sales and after-sales support also They stand on their norms and formality, which can bring innovation to a halt across the organization.

 Also read:  Scope Of Artificial Intelligence In India

Startups vs MNC companies for freshers:- There are some advantages and Disadvantages for joining any of them. 

Advantages and Disadvantages of Working in a Startup

Advantages of working in a startup include:

  1. Autonomy: Startups typically operate with small workforces, providing employees with greater autonomy and control over decision-making, leading to increased vigor, dedication, and absorption in their work.
  2. Flexibility: Startups offer a more flexible work environment compared to larger firms, allowing for fewer rules and more space for entrepreneurial minds to flourish, which can significantly impact employee satisfaction and loyalty.
  3. Impact: Working in a startup allows individuals to have a measurable impact on the company, fostering a sense of value, ownership, and achievement that can positively influence self-worth.

The disadvantages of working in a startup are:

  1. Instability: Startups are associated with instability, with a high risk of failure, potentially jeopardizing employee livelihoods and not providing long-term job security.
  2. Resource scarcity: Startups often struggle to secure funding and may lack resources for staff development, recruitment, and salaries, impacting work-life balance and employee well-being.
  3. Lack of structure: Startups, being fast-moving and unpredictable, may lack organization and structure, leading to disorganization and potential insecurity among workers.

Advantages and Disadvantages of working in an MNC

Advantages of working in a Multinational Company (MNC):

  1. Contribution to the economy: MNCs help increase trade, improve the economy, and create employment opportunities in the host country.
  2. Cost advantage: MNCs establish facilities in low-cost nations, achieving cost advantages and offering low-priced, high-quality goods and services.
  3. Innovation and creativity: MNCs contribute to the creation of innovative and creative products by employing domestic and international employees, raising the quality of life in smaller nations.
  4. Financial inflows: MNCs create foreign currency through inward investments, crucial for developing and emerging nations, and helps boost expectations for what is feasible in less developed countries.
  5. Technological growth: MNCs benefit host nations by transferring technical advancements, aiding in the technical growth of poor countries.
  6. Access to customers: MNCs have access to a broader pool of customers, enabling faster growth and development compared to businesses with operations restricted to a narrower region.
  7. Competition and economic growth: Competition among MNCs sparks rivalry and increased investment, leading to improved product efficiency, manufacturing process quality, and overall economic growth.
  8. Tax benefits: MNCs benefit from lower and deregulated tax rates, encouraging competitiveness and economic contribution.

Disadvantages of working in a Multinational Company (MNC):

  1. Threat to local businesses: MNCs could pose a threat to small and local businesses in the host country.
  2. Labor exploitation: Due to the lack of stringent labor laws, employees in MNCs could be exploited.
  3. Risk of conflicts: There could be conflicts between MNCs and the country they operate in due to potential fragile political climates.
  4. Job insecurity: MNCs practice hiring and firing, leading to job uncertainties and potential issues within the country.
  5. Lack of recognition: Employees in MNCs may not get their work recognized due to big hierarchies and segmented groups, leading to dissatisfaction and potential job switches.
  6. Limited learning opportunities: Compared to startups, there is a lack of learning opportunities in MNCs, as employees often work in specific job roles with little freedom to engage in different projects.
  7. Slow compensation growth: Employees in MNCs may experience slow raises in compensation over time, with average annual pay raises remaining relatively low, leading to dissatisfaction among employees.
  8. Lack of creativity: MNCs operate on strict SOPs and organized discipline, potentially stifling creative freedom and innovation among employees.


Anyone about to land their first job faces the confusion of choosing between a well-established MNC or getting themselves going with a unique startup idea that might blow up in the future. The decision between the two is tough as both are equally matched.  

Startups vs MNCs has always been a hot topic for economic forums that want to attract readers, but they end up increasing the confusion. One of the Best Engineering colleges in Jaipur which is Arya College of Engineering & I.T. helps students select either a Startup vs MNC company according to their skills, choice, and market demand.

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