Tap to Read ➤

Pros and Cons of Working in a Smaller Company

Niharika Arya
Working in a smaller firm can give you benefits which may be better than a big organization. But there are few disadvantages which cannot be ignored. So, find out the pros and cons which you may face while working in a smaller company.

Did you know?

According to the U.S. Small Business Administration, small business companies pay 42% of the total U.S. private payroll.
When seeking employment, people try to search for a name which is well-established and well-known in the market. They resist from applying in smaller firms from the fear of getting lesser growth opportunities. But the fact is quite different from what you think.
In the present scenario, smaller companies have better prospects in hiring, salary, growth, profit, etc. According to the US Small Business Administration, smaller companies employ more than half of the private sector employees. This shows that the smaller companies should in no manner, be ignored. This does not mean that they do not have any drawbacks.
The biggest drawback of a smaller company is lack of a brand name. So if you are concerned about working in a smaller firm, then consider the following advantages and disadvantages before taking a decision.

Working for a Smaller Business: Pros and Cons

Small companies and large companies have totally different work cultures. Both have their pros and cons, and one must look into them carefully before applying. In this CareerStint article, we will try to list out both pros and cons, which will help you to understand more about working in a smaller firm.


➽ When you are in a smaller firm, you know everyone and obviously they know you. From a small office assistant to the CEO, everyone is familiar with one another. This builds a strong relation between you and your colleagues and a direct relation with the head of the company.
➽ You will get the opportunity to learn about each and every section of the operation/process.
➽ You will get more exposure, as you will get the chance to interact with the client directly.
➽ You can develop your skills and can actually find your area of interest.

➽ In smaller companies, you get the chance to work independently and can report to the head directly.
➽ Your work will be recognized faster and you will be rewarded at every step.

➽ You will get the opportunity to know in and out of the company, and your suggestions and ideas will always be invited and valued.
➽ More responsibilities will be handed over to you and you will come out as a person who is good at multitasking.

➽ Promotions will be quick, which will soon take you to a higher post.
➽ The competition would be comparatively less, because of lesser number of employees.


➽ As the organization is small, there are limited resources which may cause some problems. You may need to limit your needs or have to work with the available resources only.

➽ Though you are more likely to get early promotions, it may not help you in career progression.
➽ You will definitely have to multitask, however, the level of work allotted to you completely depends upon your boss.
➽ You will get to interact with a limited number of people. Though you may develop a good rapport with them, you may not get the experience of working in a big team.
➽ When the people are less, mistakes are noticed more clearly. Hence, you will be at a higher risk of getting caught if you do any blunders, which will, by default, affect your job security.
➽ You may be recognized in the company for various assignments, but these will not add any value to your resume.

➽ There will be very few formal training sessions as the employees are less.
➽ There will be less established procedures which can slow down the work. This may lead to chaos at the time of deadlines.
➽ In spite of all your extra work and efforts, there are chances that you may be underpaid.

➽ You may not get similar benefits, perks, etc., that you expect from a big company.

➽ Some companies have set office hours, but the ones that do not, may expect you to work longer and harder. You may be asked to finish the work in whatever time it takes.
There is no harm in working in a smaller company, but if you have already worked for a bigger firm then you may face some problems. Whether you work in a small or a big company, your experience, dedication, and performance will definitely be counted.
While switching over to a smaller firm, you should understand the status of your career and where you stand in the market. Consider all the challenges and then make the move.