Working at Startups vs Large Companies

Picking between a startup and a large company is one of the most important decisions when starting out in your career. On the surface they seem the same, but they differ largely in terms of personal responsibility, work life balance, risk, and career development. In my career, I've worked at both. There's no right or wrong answer, it entirely depends on your personality traits and preference.


Startups

Startups offer many kinds of advantages in comparison to mid to large companies. One of the main ones is an ownership of product. When working at a startup you are typically responsible for one of the more larger features or products that is marketed. With larger companies, sprint work typically consists of micro-tasks and can feel futile at times. Being able to see a clear sense of impact is one of the main drivers of a good software engineer.

Startups also offer more learning and growth in comparison to larger companies. Working at a startup allows you to "wear many hats". If this phrase scares you, it's best to stick with larger companies. I'm a big advocate of joining a startup early in your career for this reason. With right mentoring in the company, you can get a complete overview of how software products are developed and released, and use this knowledge to accelerate your career. In larger companies, this knowledge is restricted unless you work in upper management.

One thing I also enjoyed about working in a startup was the flexible work arrangements and casual culture. This doesn't necessarily mean taking month long vacations (quite the opposite at a startup instead), but you can generally make your own hours, and don't have to attend all meetings. You can also wear what you want, which is a big plus for people in tech.


Larger companies

For some people, the reasoning above is the exact logic why larger companies suit them better. One thing which they do better is manage their workload. The typical hierarchy at a large company involves multiple managers, who are skilled at managing stakeholder expectations, and distributing work to their subordinates. Startups typically aim to deliver features within a small period of time, and this can lead to potential issues involving quality, and scalability of the product down the line.

In terms of workload and pace, larger companies move much slower. Developers at larger companies perform very little actual work in comparison to startups. Most of the time is spent at meetings or even scheduling meetings. This is where software engineers differ on opinions. Some people can easily enjoy having very little work to do, while others feel stagnant and get frustrated with their progress. It's a big factor in the decision making process when picking between these two.

One of the clear positives of larger companies though is the stability and clear outline of career path. In comparison to startups, it's much more rare for layoffs to occur due to financial reasons. Companies with lots of upper management are typically very well-off. Also, there is a clear career path and progression outlined for you when first joining. Mentors and advisors explain this during onboarding, and most teams consist of different levels of engineers who can back it up.


What fits you better

Choose a startup if you:

  • Enjoy being busy and working across different areas
  • Want to learn quickly and take on more responsibility
  • Are comfortable with uncertainty and change
  • Enjoy a casual "techy" culture

Choose a large company if you:

  • Prefer structure and clearly defined expectations
  • Value stability and predictable workload
  • Want a clear and steady career progression

My Take

I prefer startups personally. Mainly because I enjoy keeping busy, and slow progress in software development can be frustrating. That being said, I can definitely see why larger companies appeal to people.

meow

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