The rise of startups: pros and cons of working for one

If you have ever asked a young person what they want to do in their future, you have probably heard the answer ‘I want to open my own company’. In fact, there are over 150 million startups in the world with 50 million emerging each year. Although only some of them succeed, the phenomenon is still very popular. 

Joining a startup company: what does it mean?

According to the Cambridge dictionary, a startup is ‘a company that has just been started’. However, if we look for a deeper definition, we can look at the Britannica encyclopedia, which states the following: ‘startup company [is] a business at the initial stages of its life cycle. It is typically characterized by an innovative stance, a potential for rapid growth, external funding and vulnerability’. In particular, innovation is the key feature in startup companies, as they usually offer new and out-of-the box products or services, aimed at disrupting the traditional way of doing things. 

The rise of startups and the abandonment of work-life balance

In the last few years, the number of startups, especially of tech startups, has increased considerably. Why does this happen? First of all, new technology has made it easier to start a business and to find new solutions for pre-existing problems. Secondly, people have changed their mindset, abandoning the preference for a stable life for a growing risk-taking culture. Lastly, the world is increasingly more interconnected and provides new opportunities for entrepreneurs. 

Pros of working for a startup

From the point of view of the employees, there are various perks of joining a startup rather than a corporation.

• Flexibility: many startups often don’t require a 9-to-5 schedule as most corporations and employees can choose their own working hours. Also, a startup usually allows you to work from home.
• Work environment: as startups have fewer employees, the connections are usually tighter.
• Culture: the fast-paced, dynamic and innovative culture may be particularly attractive to Gen-Z employees, now entering the job market.
• Opportunities to learn: work at a startup can be very positively challenging, as startups tend to give more responsibilities to their employees than traditional corporations. In this way new professionals have the opportunity to learn new skills, competencies and procedures in a short time. 

Cons of working for a startup

However, although tempting, working for a start-up has its disadvantages:

• Poor work-life balance: as the responsibilities are higher, employees of a startup may find themselves working long hours and develop work-related stress.
• Uncertainty for the future: since startups are usually risk failing (for example in the US only 50% of startups with employees make it past the first five years of business), they do not guarantee job security.
• Lower pay: a more established company is usually able to provide higher salaries to its employees. 

Examples of working in a startup environment

If you think about it, many big companies were once startups: Uber, AirBnb and Zoom, just to name a few. In Poland, Warsaw is considered as the main startup hub. In particular, some of the most interesting and promising startups are in the health sector. Examples include Holi, focused on treating obesity, and Mindgram, which helps companies support the mental well-being of their employees. 

As opportunities for new startups arise, young people interested in the subject should carefully consider their desire to work for one or to set it up.

Summary – pros and cons of working for a startup

From the employees’ perspective, the benefit of working for a startup includes flexibility in choosing working hours and the ability to work from home. However, a startup requires employees to handle more responsibilities, which can lead to difficulties in maintaining a healthy work-life balance. Despite these challenges, a job offer at a startup provides the opportunity to quickly learn new competencies.

If you’re interested, you might want to explore another article on our blog: Common reasons why people move to another country.

Editor: Barbara Sękowska