The Advantages of Being a Small Business

Good things come in small packages. Here are some of the advantages of a small business over a large company.

Quick response time:–

A small business is very quick to respond to problems and solve them due to a smaller chain of command. Top management is usually available at once and so are the relevant people to be able to handle the situation in a short period of time. On the contrary, larger businesses are notoriously slow to respond to problems and have a long complex chain of command. Additionally, they have a number of policies to be adhered to and practices that must be followed at many steps along the way. This makes them slow to solve problems and snags that come up in the course of even routine work.

Flexibility in making decisions:–

A small business has the flexibility to bend, manipulate and change the rules depending on the need of the hour, whereas a large company is stuck in a quagmire of policies and legalities. There are no exceptions to the rule for a large company whereas there may not be that many rules for a small business. This allows employees, managers and owners the flexibility to make decisions on the spot, instead of waiting for a long chain of command to get to the person who is able to make a decision. The decision can be made faster, at times instantly, in a small business and work can carry on. This increases the productivity of the employees as well.

Personal Attention:–

The small business is able to give time and attention to its customers and this is the foundation of a successful business. Why do people love their favorite little coffee place as opposed to a huge chain like Starbucks? Because the waitress is not in a rush and the guy at the counter knows your name and because of those lovely little quiches they make at 6 o’clock every evening. Customer service has the ability to make decisions and change the rules depending on who they are serving, which is simply not possible in a large company that has to standardize its approach.


A lot of small businesses are small because they are specialists. Some are boutiques. This gives them a major competitive edge over the large companies that form the competition. They can do well at tasks that are ignored or under-serviced by big busy companies.

Flat structure means easy communication:–

There is often a single point of contact offered by a small business to its customers and this person is able to service the client better for it. The person is more likely to know the customer’s history with the company, better able to make a judgment call and well versed with each section within the small business. This is mainly due to the flatter organization structure of the small business.

Change with times:–

The small business is more geared towards change due to its smaller size. Less training is required and the change has better reach throughout the organization. A large company requires a lot of time, money and effort to make even the smallest change due to its sheer size and complex organization structure. The small business therefore, has more future-readiness.

About the Author:

William King is the director of Wholesale Pages:, Aid and Trade:, Daily Trader:, and Australia Wholesalers: He has 18 years of experience in the marketing and trading industries.

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About (Hajj) Amal Abdalhakim-Douglas

Amal Douglas is Senior Consultant at the DMC Consultancy specialising in fundraising and business support and is a long-standing member of both the UK Institute of Fundraising (InF) and Institute of Enterprise & Entrepreneurs (MIoEE). He has authored a number of books and other publications including, Seven Secrets of Successful Fundraising, For the Coming Woman, An Interview with Ralston X, and Zakat - Raising a Fallen Pillar (with Shaykh Abdalhaqq Bewley)

Posted on March 19, 2008, in Business Solutions. Bookmark the permalink. 25 Comments.

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