Startup vs MNC: What should be your internship destination?

The startup vs MNC has been a prime topic of debate for students and professionals while choosing opportunities of work they should go for. The mind-boggling weighing process has confused many. The debate of a startup vs MNC gains importance, especially when choosing an internship because they not only bring a plethora of learning opportunities and in many cases, serve as entry points to full-time jobs, but also provide with the real-life scenario of a company.

The internship experience of a student differs if he has considerable work experience and chooses to go for a startup or MNC, or if he is a fresher.  Many other factors also contribute to a student’s internship experience like the stage of the cycle that the startup is in, pay, work culture, and job stability among others. The factor you give most weightage to depends a lot on your personality. Here’s a look at the perks and challenges that a startup and an MNC offer you.

Startup vs MNC: Factors to consider

Work exposure

Work exposure here means the variety of areas of work that a professional is exposed to on the job. In the startup vs MNC debate, startups generally have the upper hand regarding this factor. Working at a startup mostly means that the professional shares responsibilities and try to expand their expertise beyond their assigned roles. Not only that, due to the small size of the organization he/she can be in contact with the other teams and thus know better how they work. For instance, interns offered jobs in startups for IT posts can also be exposed to marketing, finance, and other departments and vice versa.

Due to the huge size of an MNC and the practice of hiring specific personnel for every job in the company (because of the available resources), it becomes difficult for interns to form close contact with teams beyond his/her own team.

Brand value

MNCs are clear winners regarding the brand value factor in the startup vs MNC debate. MNCs have a long-built brand that holds a much bigger value than that of a startup. For example, a person’s internship at Pepsico holds a bigger brand value than that of a person working in a startup counterpart. This becomes especially important when preliminary screening is done on candidates' resumes during recruitment. A recruiter is likely to prefer a candidate with experience at a bigger and known brand rather than a startup. Having said this, it is important to note that the importance of quality of work done on the internship increases substantially as with the name of a startup on one’s resume, the next factor to check would be the work they’ve done.

Guidance/mentorship

The factor of guidance offered on the job depends on the intern’s personality and need. Startups tend to be really fast-moving, growth-driven, yet to reach their peak. Therefore, the employees that are hired are required to work hard on their own. They are expected to come up with newer ideas and solutions within their team, without much expectations of expertise of the senior management on the issue. If an intern is inquisitive and needs less guidance, startups can serve as good drivers of personal growth.

MNCs on the other hand are a great fit for those who thrive on guidance and are expecting so in an internship. They provide great mentorship and an intern is likely to get feedback as well as blueprints on the job from previous ventures of the MNC. Hard work is common in startups and MNCs, but MNCs ensure guidance too.

Job security

MNCs perform much better when it comes to job security. According to a report in 2018 released by Salesforce, the average lifespan of startups is 20 months. That’s less than two years, while the average lifespan of an MNC is 40-50 years. Apart from that, due to low financial security, startups are hit the hardest in times of uncertainty and turmoil. 12% of the startups in India had been reported to be shut, while 70% of them had been adversely hit due to pandemics by July 2020. Job cuts can also be a pressing feature during tough times in startups. MNCs on the other hand provide better job security and handle economic slowdowns and other industrial calamities better. 

Pay

When it comes to internships, many students tend to go for startups with the hope of better exposure without a fixed stipend to their name. In the startup vs MNC debate for internships, MNCs have an upper hand in terms of the stipend they offer. It is true though, that the student can approach a startup with the request of paying them for basic expenses related to the office such as a meal or travel expenses etc. But the cases are still few.

Full-time job prospects

For many interns, internships are not just learning opportunities but also a prospect to get a full-time job. In the startup vs MNC debate, job conversion is better by an MNC as compared to a startup. MNCs usually spend a lot of their efforts on training interns about their work and organization structure and work culture, and thus, they usually open full-time job opportunities for these interns. It surely does depend on the intern’s performance as well. In the case of startups, the training given is low, and unless the intern has done exceptionally well, the startups are less likely to offer permanent jobs as compared to an MNC.

Work culture

The work culture differs greatly in startups and MNCs. And is a major reason for many Millenials choosing startups over MNCs in the startup vs MNC debate. The environment in a startup offers bigger responsibilities and demands harder and faster work from an individual, but they also offer an open and more accepting culture than an MNC. MNCs have fixed hierarchies that may/may not make an intern comfortable with communicating his/her ideas in the company. In a startup though, the teams are much smaller, and there are fewer management levels. Thus, the communication of ideas is more and faster in startups. 

Working hours 

Startups offer flexible working hours, while the corporate world has fixed hours of work. But the startup vs MNC debate based on working hours cannot be settled only with this fact. It is very important to note that the early stage of a startup can be taxing for an employee. At a time when growth is the major priority, startups expect an employee to chip in anytime as and when required. Whatever unexpected challenge arises, it is necessary to be dealt with promptly irrespective of a holiday or a working day, because the stakes are always high in a startup. This is not so in an MNC. Due to the stability in an MNC, work hours and workdays can be afforded to be fixed for employees.

Startup vs MNC: How to decide?

The startup vs MNC debate has no one answer for all. It depends a lot on the student/professional’s personality and his/her priority from among the above factors. If you’re at a juncture where internships are your way, it’s advisable to consider long-term benefits as well as short-term ones. To ease out the process a bit more, here are some suggestions you can follow before you choose whether you want to work at a startup or a corporate: 

1. Do a SWOT analysis. Consider your strengths and weaknesses, and of the company too. Decide where your strengths can be utilized better, and your weakness can be overcome.
2. Before joining, ask questions like, ‘How much stake will you have in the company?’, ‘How much funding is left with the startup?’, ‘Is the startup bootstrapped, or has it recently raised a seed investment?’
3. Don’t call it quits if the above answers are not very promising. Also, consider the learning opportunities and the employee satisfaction at the startup. It’s important to look out for reviews by former interns or current employees. They are likely to make the picture a little clearer.
4. Don’t hesitate from asking questions about the place you’re going to be working at. Ask questions about the work culture, timings, pay to gain clarity before you make a decision.
5. Have a look at the products offered by the company and the size of its consumer base. They are good indicators of the quality of work that is being done, and also help you understand the consumers of the company. That'll be beneficial when you take up the internship.

This article was submitted as a monthly entry to D2C Igniters Club by Aanchal Singh from SIBM Nagpur

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