The career choice of business graduates: SMEs or MNCs?

To promote SME growth, it is essential to attract young, educated minds to work for them. Recent graduates often view employment in small‐ and medium‐sized enterprises (SMEs) as a “second choice”, and prefer to work for multinational corporations )MNCs). This study uses a job attributes model to address the inability of SMEs to attract business graduates. The first part of the study investigates the importance of nine job attributes to graduates in initial job selections, and their perceptions of these attributes offered by SMEs and MNCs. The second part of the study reports that SME employer perceptions of the attractiveness of these attributes are very much different from those of the graduates. Finally, recruitment packages of SMEs and MNCs are compared, and attributes such as job security and long‐term career prospects are found to be better in SMEs, thus suggesting that SME owners must communicate more effectively with graduates.