While small and large businesses might operate in the same market, there are enough significant differences in their company culture to affect their business operations. These differences are not only physical but tend to include legal and financing structures as well as different mindsets and approaches to doing business. From company culture to job functionality, here are six key differences between working for a small firm and its larger counterpart.
1. Speedy decision-making
Large corporations, with their abundance of bureaucratic levels, will often require more time to make decisions. In contrast, in smaller organizations, decision-making can be fairly fast as very often the person at the helm also owns the business and has the authority to take tough decisions without hesitation.
2. Pro risk or risk-averse
The way large and small companies feel about risk-taking varies considerably and is due to size. A smaller organisation or even a start-up tends to embrace risk more as the pitfalls are considerably less. A large corporation on the other hand often has a more vested interest in keeping things as they have always been and sticking to a formula that has proven to be successful therefore less open to taking risks.
3. Allocation of resources
Every penny counts in a small or young business. Resources, which can be scarce, are allocated based almost solely on whether they will boost the bottom line. With more abundant resources within a larger business, there is a more relaxed approach when it comes to spending even through recent recessions have changed that too.
4. A melting pot of people
In a larger organisation with a strong and clear company culture, the workforce will often take the shape of that culture and will attract those looking for job security above all. A smaller company tends to attract a more diverse workforce to include, young, old and simply different employees. It tends to appeal to those who wish to work across a number of different areas, looking for growth, change or risk-taking.
5. Size of salary
A general consensus on salary is that in larger companies the salary tends to be higher. However smaller business try to counteract this by adding perks like health insurance to make packages more attractive to potential employees.
6. Company structure
There is no doubt that the larger the organisation the more bureaucratic and hierarchical in structure. This is mainly due to the higher numbers of employees within a large company. This can result in not having the broadest overview but also allows for employees to specialise in their job profile. The structure in large businesses tends to be full of policy manuals, HR inductions, job descriptions and meetings. Smaller businesses, on the other hand, tend to have a more ad-hoc approach and more freedom for employees to do as they see fit.