Benefits of working for a startup
Nova Startup Club
The Nova Startup Club is the Startup student-run organization of Nova SBE.
Working for a startup offers a rewarding and challenging working environment. Many graduates and professionals are inspired to seek out innovative firms. But what are the benefits and risks? Here are three reasons to consider a startup.
Startups are purpose-driven young firms on a mission to capture market share by solving business and consumer problems. These operations often lack market penetration and funding. The early years are a constant struggle to survive as firms compete to find investors. However, while startups are volatile, jobseekers that identify the best firms can launch their careers within high-growth potential enterprises.?
What are the benefits?
1.?Autonomy
Startups usually operate with small workforces; because of this, autonomy is greater. According to Ranjay Gulati of the Harvard Business Review, what set successful startups apart was the autonomy employees experienced. The autonomy comes from the experimental nature of startups defined by new initiatives, fluid roles, and responsibilities. The benefit of autonomy is that individuals have greater responsibility and control over decision-making. A study found that autonomy contributes to increased vigour, dedication, and absorption. Another benefit of autonomy is mobility because with great power comes great responsibility, and successful workers can expect rapid promotions. In short, for individuals in the early stages of their careers, the autonomous nature of startups could accelerate professional development.
2.?Flexibility
Often larger firms become swamped by bureaucracy; the scale of operations and standardisation of practices create rigidity. According to Simon-Pierre, Co-founder of Spotlight, “joining a startup is very different from joining an established company. The main difference is the lack of structure in a startup, which impacts work hours, processes, and working relationships.” The benefit of flexibility is fewer rules and more space for entrepreneurial minds to flourish. In addition, a study found that flexibility of work has a significant and positive influence on employee satisfaction and loyalty. In essence, startups can offer flexibility?for those who value freedom across all dimensions of their life.
3.?Impact
Rather than being a small cog in a big machine, the size of startups allows individuals to have a measurable impact on the company that colleagues will notice. CEO of LearnLux, Rebecca Liebman, highlights that “at a startup, every job matters, and you can see almost daily that you are creating something that wasn’t there before”. The benefit of impact is that individuals can feel greater value and ownership of achievements. According to a study, feeling valued in the workplace dramatically influences an individual’s self-worth. The study also found that feeling valued in the workplace was more important than monetary compensation for many. Essentially, a startup might be the move for individuals who want to impact their environment.
What are the risks?
1.?Instability
Startups are usually new companies and are associated with instability. The risk of instability means that employee livelihoods are in greater jeopardy at a startup when compared to larger established firms. A study by the Small Business Administration found that 90% of startups fail. A startup may not be the right option for individuals in need of employment security. ?
2. Resource scarcity
The race to secure funding and capture market share is a constant struggle for startups. During the early stages, startups are under significant time pressure and may lack the resources to invest in staff development, recruitment, and salaries. The risks associated with resource scarcity can hurt work/life balance when managers expect employees to hit targets without the necessary tools.
3.?Disorganisation
As mentioned before, startups are more flexible than larger established firms; however, the lack of structure can create disorganisation if mismanaged. The risk of disorganisation can create an environment where workers feel insecure. A study found that structured work environments provide a sense of security for many.
Do the rewards outweigh the risks?
Choosing whether to work at an established corporation or a startup depends solely on individual values. Everybody has strengths and weaknesses, and before seeking a role, individuals should ask themselves where their capabilities will be best suited.
By Willem Anthony Clow
References