Most small businesses think that big companies have limitless resources and tons of money, and accordingly can do whatever they want. At the same time, most large companies think that all small ones are entrepreneurial, acting quickly, and bursting with creativity. Neither of these common beliefs is true. Most big companies do not throw a lot of resources at every project, and most small companies tend to become stagnant when they are through with their initial, entrepreneurial stage.
Small businesses have important competitive advantages. When founders are leading the company, they do so with an authentic passion to deliver on a vision. It's their life. They know their business and customers better than anyone else, and this knowledge can be hugely leveraged with the right operational practices. A large company may have more money for research, but the leader of a small company almost always has more direct interaction with their customers. I am a huge believer that customer-driven strategies win over the long run.
