MNC and startup are the terms used in the context of companies, while people know the basic things about both the company structures but if you want to know completely about both company structures then you should know the difference between the two. Given below are some of the differences between MNC and Startup-
MNC VS Startup
Meaning
The full form of MNC is Multinational company refers to that company which has its offices in other countries apart from its home country, while the head office remains in the home country from where activities of companies in other countries are coordinated whereas startup refers to that company which is newly formed and is present in one location only, startup is started due to some unique idea or innovation so as to create new product or service and profit from the idea or innovation.
Size of the Company
The multinational company is big in size due to presence in many countries, besides the strength of employee is also humungous while as far as startup is concerned it is very small in size and strength of employee is also very less, in some of the startups the number of employees is less than 10. In simple words, MNC is like a shark of the ocean while startups are like small fishes of the ocean who dream to become one day shark of the ocean.
Brand Name and Recognition
MNCs are already established companies and hence they have brand name and recognition of its customers not only in its home country but also in countries where it operates while as far as the startup is concerned there is no such brand name and recognition from the customer’s side. In simple words, MNC is like jungle fire just as jungle fire is big and visible from many miles in the same MNC is big and has a strong brand presence while startup is like a small spark which is not visible but has the potential to turn into jungle fire.
Growth Factor
In the case of MNC, the growth of the company will be linear as the company is already established and hence growth rate of the company is on the lower side but as far as startup is concerned the growth of the company will be exponential as the company is growing from scratch which in turn will always lead to big numbers as far as the growth rate of the company is concerned. In simple words, if there are 2 students in a class while one student scores 80 percent in one year while the second student scores 40 percent, now next year first student scores 96 percent than his growth rate is 20 percent while the second student scores 80 percent than his growth rate will be 100 percent here the first student is MNC and the second student is startup.
Working Environment
In MNC working environment is quite formal as there are clearly laid out roles and responsibility of various positions in the company also the career progression is also smooth in the sense that incentives and promotions happen after a fixed period of time but as far as a startup is concerned working environment is informal and in some startups, there is no office as employees work from home besides the promotions and salary package can be unpredictable in the sense that if startup turns out to be a success then there is no limit as far as career growth and money is concerned but if startup turns out to be a failure than your career can be in danger both professionally and financially.
As one can see from the above that both startup and MNC are completely different from each other and that is the reason why any outsider like employees, creditors, government looking to analyze both types of companies should first know the difference between the two and then only should take any decision.