There are many different types of companies in Japan, including both major corporations and venture companies, and for foreign engineers who are not familiar with Japanese business culture, this can be a point of confusion when deciding where to work. Major corporations and venture companies each have their own differences, advantages and disadvantages, so it is important to know the differences between them and work at a company that suits you. 

In this article, we will explain the differences between major Japanese companies and venture companies, as well as the points to keep in mind when working for either type of company. Foreign engineers who wish to find employment in Japan can use the foreign engineer-focused job change agency "G Talent" to efficiently find a company that suits them.

Which should foreign engineers choose: a major company or a venture company?

When foreign engineers work in Japan, they may be unsure about whether to work for a major company or a venture company. However, even though we call them all foreign engineers, their personalities and characteristics differ from person to person, so it is not possible to say which is better in general.

It is important to choose a company that suits each foreign engineer, without being too fixated on major companies or venture companies.

However, it is also true that there are differences and characteristics between many of the major companies and venture companies in Japan. By knowing the differences and characteristics between major companies and venture companies, you can reduce the gap for foreign engineers after joining a company. Let's use this article as a reference to understand the differences between major companies and venture companies in Japan.

Reference: 私のキャリア遍歴に基づくマインドセット論〜大企業⇒ベンチャー⇒そしてフリーランスへ〜／Tech Team Journal

The differences between major and venture companies in the Japanese engineering profession

In Japan, there is a shortage of Japanese IT personnel, so both major and venture companies are focusing on hiring foreign engineers. In order to avoid any regrets for foreign engineers, it is important to understand the differences between major and venture companies. The main differences are summarized in the table below.

	Major company	Venture company
Scale of projects involved	Large scale	Small scale/subcontracting
Work/scope of responsibility	Design work possible from first year	First year is simple programming and system construction
Sense of speed	Slow	Fast
Salary level/salary increase	Salary is high Salary increases easily	Salary tends to be lower than large companies Salary increase speed depends on performance
Career path system	Difficult to be evaluated depending on company	Easy to be evaluated
Extent of welfare benefits	Extensive	Depends on the company
Human resources development system	Extensive	Depends on the company
Ease of taking time off and holidays	Difficult to take in companies or departments with complicated labor management	Depends on the company's system and atmosphere

Let's take a closer look at the differences between them.

Scale of the projects involved

Large companies often handle large-scale projects, while venture companies often take on smaller projects than large companies. Large companies often take on projects for major banks, securities companies, and government systems, and if a problem were to occur, it could have a large-scale impact.

Because they are large companies with a high level of trust, they often take on large-scale projects, but because the projects themselves are large-scale, the number of people involved is also large, so it may be difficult for each individual to feel that they were involved in the system.

On the other hand, venture companies develop relatively small-scale systems with a small number of people, and there are also venture companies that are contracted to take on the downstream development process from large companies.

Reference: 大手企業へのエンジニア転職ってどう？中小との違いを解説！／イーデス

Work/scope of responsibility

In major companies, you can get involved in requirement definition and system design from as early as your first year. This is because some major companies outsource programming work to venture companies and only perform the upstream process of development. For foreign engineers who want to be involved in the upstream process from an early stage, it can be said that it is easier to seize opportunities at major companies.

In the case of venture companies and small and medium-sized companies, if they are often subcontracted by major companies, there are many downstream processes such as programming. However, there is the advantage that there is a high possibility of being able to oversee the entire project.

Reference: 【どちらが良いか】ITベンチャー企業と大手企業のメリット・デメリット比較／IT転職辞書

Sense of speed

In large companies, there are communication and procedural barriers between each department within the company, so the sense of speed in work tends to be slow. However, in venture companies, the distance to management is close and the procedures for obtaining approval are simple, so the speed of decision-making tends to be fast. In venture companies with a strong spirit of challenge, it seems that some companies will immediately put forward ideas in meetings and try anything before thinking about it.

Reference: 大手企業とは？　定義や中小企業との違い、メリット・デメリットを紹介／マイナビ転職

Salary level/salary increase

Major companies tend to have well-established systems such as bonuses and allowances, and annual salary increases. Therefore, compared to venture companies and small and medium-sized companies, engineers generally earn higher salaries and are more likely to see their annual income increase.

Venture companies tend to be unstable, with bonuses being cut in years of poor performance, for example, while bonuses may be high in years of good performance. The salary structure differs greatly from company to company, so it is difficult to generalize, but salaries are often lower than at major companies. However, in the case of venture companies, salaries may increase in line with your abilities.

Reference: 年収一挙公開！大手VSベンチャーどっちが給料多い！？／Tech総研

Career path system

In large companies, it is difficult to see an individual's performance because of the established evaluation, promotion and training systems. If your direct supervisor does not conduct the personnel evaluation, there are many cases where good performance does not lead to a good evaluation.

In venture companies, the distance between the management and the employees is short, so it is easy for your performance to be reflected directly in your evaluation. It can also be said that it is an environment where you have many opportunities to demonstrate your skills and ideas.

Reference: 大手とベンチャー、エンジニアの仕事内容とキャリアの違い／assign navi magazine

Extent of welfare benefits

Large companies often have well-developed welfare systems. They provide generous support, including a full range of pension and insurance programs, company housing, and rent subsidies. Some venture companies also work to create a comfortable working environment, but compared to large companies, they tend to have less generous benefits and welfare systems.

Reference: スタートアップ企業に福利厚生はあるの？その他企業との違いや具体例を徹底解説／ベンチャー就活ナビ

Human resources development system

Large companies tend to have well-established training and human resources development systems. They offer support for employees who want to improve their language skills, as well as training to improve their specialist skills. Foreign engineers may also be able to find companies that offer Japanese language support.

In the case of venture companies, the extent to which they have well-developed human resources training systems tends to depend greatly on the company's performance and the management's policies.

Reference: ベンチャーの研修制度ってどうなってるの？研修制度のあるベンチャーの見つけ方を紹介／ベンチャー就活ナビ

Ease of taking time off and holidays

There are engineers who work hard even at large companies, but because many companies have strict limits on working hours, there are not many companies that exceed the prescribed overtime hours. However, many venture companies are trying out various new things, and compared to large companies, there is a tendency for working hours to be longer. However, because venture companies tend to adopt flexible working hours and discretionary labor systems, it is easier to achieve a flexible working style.

In addition to working hours, major companies also tend to make it easier to take holidays. This is because major companies tend to have more staff than venture companies, so it is easier to find a replacement for them in terms of work.

Reference: 大企業とベンチャーの違い、フィットしやすい人の違いとは？／note

Points to note for working in a major or venture company in Japan as a foreign engineer

There are three things to be aware of when working as a foreign engineer at a major or venture company in Japan.

• A work visa is required
• Japanese language skills are required
• Understand cultural differences

A work visa is required

In order to work as a foreign engineer in Japan, you will need a work visa. There are several types of work visas, but in order to work as a foreign engineer, you will need to obtain a “technology” visa under the “Engineer/Specialist in Humanities/International Services” residency status.

In order to obtain the “Engineer” status of residence, you must either have “at least 10 years of work experience” or “have studied a subject related to the job you will be doing at university or a vocational school”, or you must have a qualification in information technology as specified by the Ministry of Justice, and you will be required to have experience, qualifications and study hours in order to obtain the visa.

Even after you have submitted your application documents, it takes time to be approved, so you should prepare for your work visa in advance so that you don't make the mistake of not being able to obtain a work visa even though you have received a job offer.

Reference: 外国人エンジニアに必要な在留資格や就労可能な職種の種類、注意点［グローバルエンジニア2]／Fellowship

Japanese language skills are required

In order for foreign engineers to work in Japan without any problems, they should acquire basic Japanese language skills and business etiquette. Even foreign engineers who have been hired may need to communicate with their superiors and colleagues or participate in business negotiations with customers. By acquiring Japanese language skills, it will be possible to respond and deal with situations in a way that is not rude as a businessperson.

If you learn IT jargon and words commonly used in business situations in Japanese, it will be useful for communicating with your boss and colleagues and for your work.

Reference: どうする？外国人労働者の日本語教育問題｜教育方法やコミュニケーションに大切なこと／外国人採用サポネット

Understand cultural differences

If you are a foreign engineer working in Japan, it is important to understand that different cultures and values are emphasized in Japan and overseas. For example, in overseas countries, people are valued for their attitude of speaking up and taking on challenges without being afraid of making mistakes, but in Japan, there are still some values that place importance on following the instructions of one's superiors and carrying out one's work without expressing one's own opinions.

Furthermore, there is a possibility that there are aspects of the workplace culture that foreigners may not understand, such as not being able to go home because the boss is still working even though you have finished your work, or strict control over the start and finish times of the working day. In order to avoid culture shock, it is important to understand the unique working culture that remains in Japan.

Reference: 日本で働く外国人社員 ヒアリング調査結果『日本語はムズカシイ？日本語だけの問題じゃない？』～日本で働く外国人社員に聞いた、日本語コミュニケーションの課題とは～／PR TIMES

Let's work as a foreign engineer at a major Japanese company or a venture company!

In this article, we have explained the differences between major companies and venture companies, as well as the points to note when working as a foreign engineer in Japan. After learning about the differences between major companies and venture companies, choose the environment you want to work in. Foreign engineers should use the three points we have introduced here as a reference to start their careers in Japan.

For foreign engineers looking for a company that suits them in Japan, we recommend using the job-placement agency “G Talent”, which specializes in foreign IT engineers. They support the job-hunting and career-change activities of foreign engineers who want to work in Japan, and introduce companies that match their experience and abilities. They also provide support for interview preparation and visa acquisition, so if you want to work at a major or venture company in Japan, please be sure to use "G Talent".