How Large and Small Businesses Differ

Why being a small business isn't so bad after all

Have you ever worked in a corporate environment? To say it’s different from working in a small business is almost a mild statement. The truth is, although there are some areas that overlap in small and large businesses, the majority of them differ greatly.

As pointed out in the above video, it is often the experience of one environment that convinces a person to pursue a career in the opposite environment. Interestingly, we see this happen a lot in tech environments. People who have an entrepreneurial spirit frequently leave after a business takes off in order to go back to a startup.

After a business becomes a corporation, it has to take a different approach. Some people thrive in this new scenario, and others do not. So, what makes corporations so different?

First of all, some large businesses have the mentality that employees can simply show up to work. Although most corporations wouldn’t let it slide if they knew it was happening, people do abuse the system. However, in a small business setting, this type of behavior would be very noticeable and could not be tolerated.

Another difference between large and small businesses lies in titles. While a title or rank of an employee gives a certain level of power and prestige in both environments, the roles are very different. For instance, a business owner in a small business is responsible for all the actions that the business takes; whereas, the owner of a corporation has the ability to delegate many of his duties since he would have a much larger number of employees.

Thirdly, large businesses often have meetings and processes for handling important matters. Small businesses, on the other hand, do not usually have time for either of these practices and find that it is more effective to simply address problems quickly and independently. This quick response is one reason why some consumers prefer smaller companies to larger ones.

Flexibility is also an area that is very different for large and small businesses. Small businesses have the ability to be more flexible in their service offerings and may even be able to extend home-based offers if consumers request them. However, larger businesses would have a much harder time fulfilling such offers to their large consumer audience. If consumers are willing to pay more for special services, small businesses may even be able to use their flexibility to charge more for these perks.

Marketing and advertising strategies are also very different for small businesses and corporations. Even though most large businesses have the capital to send out effective messages, they are often sent to a mass audience. Small businesses can send out more personalized messages and distribute them in local publications that have a better chance of reaching their audience.

Lastly, the interaction that small businesses have with their customers is very different from the interaction that corporations have. Small businesses can interact directly with consumers, get to know them on a personal level, and learn exactly what their needs are. Large businesses do not usually have this ability.

I want to make it clear that we’re not trying to bash large corporations at all. Instead, we’re simply trying to show that small businesses have a lot of advantages that large businesses do not have. Many small businesses think that they can’t compete with the "big boys," but these differences prove that they can.

There are 3 Comments. Add Yours.
  1. After a business becomes a corporation, it has to take a different approach. Some people thrive in this new scenario, and others do not. So, what makes corporations so different?

  2. This is a well written article, outlining the difference in corporate and small size businesses. Business insurance can save in the hard times.

    thanks

  3. Your article crystalizes my thinking about my own small business. I have had the idea that I wasn’t doing it right because my business is small and isn’t making the big bucks.

    However, I’m finding that tailoring proposals for individual prospects more often results in a sale — sometimes quickly, more often at a later time. Also, I’ve found that being available to answer questions in my niche field — even if I have to research the question — results in good business business relations and eventual sales.

    Your article helped me to clarify that I’m at least doing some things right and that I don’t have to be a large company or imitate one to be successful.

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