Do you think Gen Y employees are better suited for startups or more established companies?

Neither. I think they are no different than the rest of us. Some will fit in here and some there. Just like anyone else based upon unique individual characteristics. To apply a lable to them as a group is defeating.

Don is correct that we should never assign a group trait to a member of group unless the trait defines the group.

In my experience "research" such as Susan references is nothing more than mind numbing business stifling stereotyping that does significantly more harm than good. probably helped someone sell a book or two as well but as far as real value added...?

As far as my experience goes I much prefer more substantive and accurate decision making criteria than some academics research theory.

No. Temperments, preferences and interests are not determined by your birth date. Startups and established institutions can thrive with all types and tend to be populated and created by all age groups, as well. No meaningful pattern with any statistical significance has ever been found to exist between and among those variables. Such stereotypes are simply the product of lazy sound-bite thinking. All the actual research shows no such patterns, but since when did rigorous fact ever trump populist marketing?

Simple people want simple answers to every question. A lot of folks are always willing to pay those who tell them what they want to hear.

Well, I think this is an interesting book. Something we could all learn from. I don't want simple answers. But I do recognize that as a successful business owner I need to recognize the general trends so that I can create a work environment to embrace everyone's talents.
http://www.amazon.com/Upstarts-Entrepreneurs-Rocking-Business-Success/dp/0071...

I agree that birth date doesn't determine personality.... if it did we could just ask "what's your sign?" But recognizing that the question was asked from a broad brush perspective, Gen Y is best suited to companies that have the resources to cater to this cohort's need for technology, lots of feedback, and flexibility.

I wouldn't say they're suited for startups but they think they are even if they are not conscious they're dreaming. Most of them are driven by ideas that they could also be the founder and owner of the next "facebook, or "google" and so. This doesn't mean they're suited for the adventure of business creation.
I personnaly feel that the real question is more to know if "old traditional" companies are suited to receive gen Y. Are they prepared to let them work on their personal rythm, doing their job their proper way ?

Startups are suited to anybody, or eventually to nobody (if you start your own business, you must be crazy, whatever your age). If there are more young startupers, it is mostly because they do not have a family yet, that may refrain some to start ... but when you are decided, experience may be useful ..

BTW, some links about entrepreneurship & “seniorship”:
- Senior startups worth billions to Britain http://ow.ly/5BUZA
- Startups by Seniors | Startup Owl http://ow.ly/5BV1C
- As entrepreneurs, seniors lead U.S. start-ups; http://ow.ly/5BV4m

"Which type of company would be better to support the stereotypical Gen-Y-er?"
No company may take advantage of any stereotype.
All companies will benefit from hiring young employees.