Last year, before the recession hits the States, I met up with some friends and we started talking about small company vs large company. Most of them say that large companies will be better since they’re more stable, consistent and productive. The small ones, to them, are too risky since these companies might suffer from cashflow problem, headcount problem, etc.

The small guy will be able to outrun the big guy and make him tired

I told them, that mentality is true and applicable for 2008 but not in the future. Why? Because there will be more and more changes ahead, more so that the large companies might not be able to handle them. Most of us know that large companies are very process-oriented and they have a certain set of procedures you need to follow for every action. I used to work for a Fortune 500 company, and at 1 point, I requested to upgrade my laptop memory to 2GB. The whole process took 3 weeks since it needs the approval from some IT managers in the States. 3 weeks…for something worth RM 200-300.

Anyway, as I’ve predicted, many so-called large companies are falling and falling fast. Retrenchments are not being made by small companies only….but also big companies (some are formerly known for being the best employers in their respective industry). In fact, most of my friends from large companies are suffering job losses or pay cuts but those in smaller companies are only suffering from pay cuts (they only lose their jobs if the company get closed down ).

The thing here is that large companies tend to spend too much time handling their processes and procedures, while the small companies (the good ones) are spending their time changing and adapting to the new environment. In this ever-changing world, whoever can adapt the fastest will win. This is something important and everyone should remember…..but sadly…not many believe in it.

So if you’re still thinking that large companies are better than smaller companies…….think again. In my opinion, it’s better to keep it small or medium for now since changes will be inevitable in 2009 onwards. You wouldn’t want to be the last in the queue to make the changes.