Pros and cons of working for a small business
When imagining a small business, it is easy to just picture a startup with no resources and a team with no experience. It can feel risky joining a company like this since their success, and thus your level of job security, is not guaranteed. However, small businesses are common and carry more merit than you might initially think. In Canada, a small business is defined as having between one and 99 paid employees. Many of these businesses might not truly be as small as expected. According to the Government of Canada, there were 1.22 million businesses in Canada in 2022. Ninety-eight per cent of these were small businesses, most of which were concentrated in Ontario and Quebec. With such a variety of small businesses across the country, carefully consider the pros and cons of joining a small business before discounting them for being “unknown.” PROS Benefits Contrary to what some might believe, small businesses do offer various benefits to their employees. In fact, Canadian small businesses are required to offer certain benefits, such as Workers Compensation Insurance (WCI), the Canada Pension Plan (CPP) and Employment Insurance (EI). Small businesses are also required to provide their employees with legislated leaves. This includes statutory holidays as well as various leaves, such as vacation, sick and parental leaves. Outside of these benefits, around 72 per cent of Canadian small businesses choose to compensate their employees with additional benefit packages. Flexibility Small businesses may have less traditional work environments, meaning they may be more willing to provide alternative work arrangements, such as work-from-home or hybrid work models, and flexible scheduling accommodations. Smaller businesses might be more understanding when it comes to important scheduling changes on the employee’s end, granting them peace of mind. Growth opportunities In a bigger company, it can be easier for your work to become lost among hundreds of other employees and various levels of management. However, in small businesses, you often have the opportunity to take on more responsibilities sooner. You are also more likely to get recognized for good performance since there are fewer levels of management. Being able to showcase your skills directly to leadership and more easily build workplace relationships might make it easier for you to work up the ranks in a shorter amount of time. To take on more responsibility, you might try out various roles within a small business, as departments are small and usually overlap. Job security Small businesses can provide a higher level of job security than larger corporations to some degree. Larger companies with hundreds of employees may go through periods of high turnover. The possibility of being seen as dispensable is higher, especially in lower-ranking positions. On the other hand, an individual’s role within a small business is much more vital. A small business may only have one accountant or marketing specialist, so these employees become much more crucial to the business’s success and day-to-day operations. Even lower-ranking roles are more important to a small business than to a larger corporation. CONS Lower compensation While many small businesses choose to offer additional benefits on top of the mandatory ones, numerous others simply do not have the resources necessary to provide employees with the same compensation as bigger corporations, suggesting a lower salary, fewer vacation and sick days, or less competitive health insurance. More responsibilities While experiencing other roles and overlapping departments can be a good thing, it can sometimes also become overwhelming. Having to take on more responsibilities than your job title suggests can make it harder to focus on what you were hired for in the first place. This can also make it more difficult to specialize within a small business, as you may be required to perform various tasks outside of your original expectations. Job security Many small businesses struggle to maintain themselves long-term. Depending on the small business you work for, you might find yourself out of a job if the business as a whole does not succeed. This becomes more likely the smaller a business is, and this uncertainty can be difficult to deal with at times. There are several pros and cons to working for small businesses, and some pros, like taking on more responsibility, can even be cons at the same time. Make sure to research adequately so that you are informed of the benefits and risks of being a small business employee.