Small firms are more geared towards developing an entrepreneurial spirit (Character of the entrepreneur) is key in the development and success of the small enterprises.
In most large firms the face of the entrepreneur keeps disappearing into policies, procedures, systems and this way the employees may loose the vision and objectives of the firm.
The face of an entrepreneur CEO must keep on being seen by employees and management in order to be accountable for the operations and to accomplish the objectives
Making an organisation social-economic venture
Where employees can meet their emotional needs. Small business are good in this because of small no of people in the enterprise. This enhances motivation, team spirit . In large organisation one the major challenges is the social distance that employees may have between them and their managers.
These inhibitions may turn to be a vice in achieving the objectives of organisations. Employees closeness to their entrepreneurial boss is an advantage because he is their role model, and they learn fast than where there are social distances,
In industrial relations :
Small firms have learnt to mange people in simple ways in order to avoid industrial strives and complex industrial cases. This they do by either employing on commission or casual or contract basis.
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