Small Vs. Large Companies: Ten Differences Between Working For The Two

All businesses aren’t created equal. What may be normal for a small company could be strange for a large one. But when deciding where to work, those distinctions matter. 

“There are a number of differences,” says Kathleen Downs, a recruiting manager at Robert Half International. “I wouldn’t say one is better than the other, but they are certainly different.”

From culture to job function, here’s a look at ten differences between working for a small firm and its larger brethren.

Getting the job

Even getting hired at a small business is different. According to Anita Campbell, Chief Executive of  Small Business Trends, chances are landing a job at a small business is going to be a much quicker process. “In large companies it’s not unusual to go through five, six even ten interviews before you are actually given a job,” she says.

The bigger the more bureaucratic

Everyone knows that when you work for a large company there are more hoops you have to jump through to get anything done. Small businesses, on the other hand, tend to have less bureaucracy, less organization and less complexity, says Kim Ruyle, vice president and managing principal at Korn/Ferry International. In a small business “it’s simpler to navigate the organizational maze to know who makes a difference,” says Ruyle.

It’s a family affair

If you work in a large company, its likely you’ll only get to know the people you work with day in and day out. At a small company you’ll probably know everyone from the receptionist all the way up to the boss. “There’s going to be more personal relationships,” says Campbell. “If you get along then it may feel like a family, but on the other hand if you don’t get along, you don’t have the distance of a big company.”

You get to wear more hats

Working for a small business can give you much wider exposure to job functions, because everyone tends to wear more than one hat. For instance a comptroller in small company may have his or her hands in budgets, forecasting and creating financial statements while in a large company he or she may only be responsible for preparing financial statements, says Downs.

Better working conditions

Small businesses typically have less rules and thus more flexibility in the work life balance they offer. They know they can’t provide the same benefits that a large corporation can, so often times they will go out of their way to make the working conditions really good, says Campbell.

More specialization at large firms

At a large company you’ll get the chance to specialize and more fully develop a specific expertise or job function. If you want a career in the tax side of accounting that can be great, but according to Ruyle it may be less appealing to the person that’s seeking a broader perspective of the business.

Opportunities abound at big companies

Most of the time at a large company there’s more opportunities to grow. After all large companies typically have a structure in place to move up the career ladder. That doesn’t mean you will be stuck in a dead end job at a small firm. According to Ruyle many companies start out small only to grow into huge enterprises.

Exacting change

Many people go into a career not only to make money but to make a difference. Chances are much higher that you can affect change at a small firm. “A publicly traded company has documented processes and procedures for doing everything,” says Downs. At a small business things can “change on a dime,” she says.

Mission is more than the bottom line

Every business is created to make money, but at a small company it’s not only about pleasing shareholders. According to Phil Marsosudiro of management consulting company Marsosudiro & Company, at small companies the owners can have multiple goals. “A small business may have other priorities like the environmental benefits or other social benefits,” says Marsosudiro.

More job security

When you get a job at a small company, often times you are considered part of the family, so letting you go may not be as easy. It can be “painstaking,” for the small business owner, says Downs. “Sometimes at larger companies there will be a mandate from someone at the top that cuts will be this deep and they don’t know the people personally.”

Donna Fuscaldo is a freelance journalist hailing out of Long Island, New York. Donna writes for numerous online publications including FoxBusiness.com, Bankrate.com, AARP.com, Insurance.com and Houselogic.com. As a personal finance reporter for years, Donna provides invaluable advice on everything from saving money to landing that dream job. She also writes a weekly column for FoxBusiness.com focused on technology for small businesses. Previously, Donna was an equities reporter for Dow Jones Newswires and a special contributor to the Wall Street Journal. Through the Glassdoor Blog, Donna will provide tips on how to find a job and more importantly keep it.

  • Guest

    Having worked for multiple small companies, I have to disagree with “Better Working Conditions” and “More Job Security.” Maybe I’ve just drawn the short stick each time with overbearing matriarchs. I’ve found that there are still plenty of rules, often rules which make little business sense, and no greater flexibility because they feel they’re doing you a favor employing you. The same goes for job security. If the head of the organization decides to make cuts there are less layers of approval or cross checking that person has to go through.

  • CitizenL

    I agree w/ you, Guest!  Small companies are very neurotic places.  Seems like everyone can make their own rules. Managers tend to be autocratic; there is little accountability.  I have found far less flexibility at small companies than a a large company.  Employees are very inflexible and there is no sense of “team”.  Also, far less job security.

  • Guest

    This article is obviously biased toward smaller companies.  I can say, after working at both large and small companies, the larger companies are definitely better employers.  I’m sure many will disagree with me, but I find the lack of organization in smaller companies to be unbearable.  I worked at a company where the “CEO” had no idea what he was doing and was constantly losing clients and firing his employees.  Also, if you do not get along with a coworker in a smaller company, your life will be hell!  It’s a fact of life that you’re never going to get along with everybody, but in smaller companies, you can’t avoid people, so the chances of confrontation are much higher than in larger companies!

  • JC

    I think this is unreal , I have to disagree whit ” Job Security”  in a small environment just one person can take the decision and screw everybody, “You are a Multi-tasking employee” you must cover several positions and the company is going to pay only for one. If you complain they always tell you “Thanks good you have a job” the situation is really bad on the job market.
    They dont care about your professional advance, because they dont have organization.
    “Small companies do not  provide training or continuity education plans  and they are really limited  in budget”