Two kinds of people are known to leave an indelible mark on the world of entrepreneurship. These include entrepreneurs (the people who start a particular business) and the employees (the ones who risk it all by working for these entrepreneurs well before the business is established). Together, these two forces of nature combine their efforts and skills to make a start-up successful. Since the role of early employees joining a new startup is extremely important, it is only appropriate to know whether employees actually prefer start-ups over established organizations. 

Together, these two forces of nature combine their efforts and skills to make a start-up successful. Since the role of early employees joining a new startup is extremely important, it is only appropriate to know whether employees actually prefer start-ups over established organizations.

A company always needs the right kind of employees to succeed. This is especially true for start-ups in developing countries like Pakistan that have to double their efforts in order to compete with companies that have established a firm foothold in the business world.

In the context of launching a startup in Pakistan, employees of a new business might not encounter the risk of financial losses in the business but they are still risking their career by joining a lesser known company over a more established one. These employees are the greatest asset of any startup since they also take a leap of faith along with investors to ensure that a company, in its infancy, reaches full potential.

Following are three reasons why working for a start-up is so enticing:

Comparing Start-ups with Established Organisations

1. Transparency

In its initial stages, a start-up is more transparent in its working than a big company that is already an established name in the market. Most start-ups engage their employees on a level that treats them no less than the founders. A good example of this practice can be observed in the working of Pakistan-based property start-up Zameen.com and how it treats its employees.

The hierarchy in this company does not sit behind walls but instead use open spaces like the rest of the employees to encourage interaction among the workforce in a transparent manner.

Transparency is a highly prized trait in the business world and it plays a vital role in establishing trust and the spirit of ownership among workers.

In contrast, big companies lack an entirely transparent system where the most vital information is only shared with a few people sitting atop the hierarchy.

2. Flexible Work Environment

The work environment in most established organizations is rigid and old school at best. There are strict checks on each and every aspect of an employee’s time spent within the organization and most workers find themselves trapped inside small cubicles and labor hard throughout the day.

In contrast, the work environment of start-ups is usually very flexible. The environment provided in start-ups revolves around non-traditional furnishing and shared workspaces for all employees irrespective of their position in the pecking order.

Cubicles are replaced by conference tables which allow employees ample space to work together and discuss important issues prevalent within a particular organization. In addition to this, the flatness of hierarchy in a start-up also helps since employees can easily approach and talk to company CEO or other people holding important positions within the organization.

Declining Trust: Client–Agency Relationships Face Continued Pressure

For instance, the chauffer cab booking service, namely Careem, recently entered the Pakistani market and the idea took off instantly in large urban centers of the country. This service allows a car owner to register his vehicle with the company. Once this is done, even an employed person can make a quick buck by shuttling passengers from one point of a city to another during his free time.

3. Learning a Unique Skillset

Start-ups allow employees to develop a unique skill set since they have more freedom and space to work on their strengths and eradicate their weaknesses. In comparison, established companies prefer to employ people who have already developed a specific set of skills.

This leaves start-ups with a bigger margin for innovation since it encourages forward thinkers over laid-back employees.

The Verdict

The flexible structure of most start-ups provides it with enough space to change direction quickly and with ease in case a company is headed in the wrong direction. On the other hand, big companies lack this ability due to the rigidity of its structure and the bureaucratic nature of its departments which prevent them from changing their course quickly.

Getting hold of a job at a start-up is preferred by employees since it provides them the chance to sharpen their skills and grow along with the organisation. Employees also find it especially tempting to work at start-ups owing to the fact that they can freely interact with people sitting atop important positions and make long-lasting social contacts.

In a nutshell, start-ups are far more effective in implementing innovative business models that not only ensure productivity but also encourages advancement and ingenuity.

Client-Agency Relationships “We Are One Happy Family & We Are Like That Only”

Contributed by Shahrukh Mian.