In 1973, a brilliant economist named E.F. Schumacher wrote a seminal book titled ‘Small Is Beautiful: taking an opposing stance to the emergence of globalization and “bigger is better” industrialism. He described the advantages of smaller companies and smaller scales of production, highlighting the benefits of building our economies around the needs of communities, not corporations.

In almost every industry or market that exists in the world today, you're likely to find a difference in size between companies. Whether it’s a global retail chain versus a small family-owned store, a corporate restaurant chain versus a mom-and-pop diner or a small bed and breakfast versus a large hotel chain — each side of the coin presents unique characteristics and advantages in a number of areas.

Disparity In Physical Security Industry

Customers are drawn to products and services from large enterprises as the big names typically imply stability

This disparity very clearly exists in the physical security industry, and differences in the sizes of product manufacturers and service providers could have important implications for the quality and type of the products and services offered. All too often, customers are drawn to products and services from large enterprises, as the big names typically imply stability, extensive product offerings and global reach.

And that's not to say that these considerations are unwarranted; one could argue that larger companies have more resources for product development and likely possess the combined expertise and experience to provide a wide range of products and services.

But the value that a company’s products and services can bring isn’t necessarily directly related to or dependent on its size. In an age where the common wisdom is to scale up to be more efficient and profitable, it’s interesting to pause and think about some of the possible advantages of small- and medium-sized businesses (SMBs). Typically, “small” companies are defined as those with less than 100 employees and “medium” with less than 500.

Providing Social Mobility 

Schumacher argued that smaller companies are important engines of economic growth. Indeed, according to the Organization for Economic Cooperation and Development (OECD), a group of 36 member countries that promotes policies for economic and social well-being, SMBs account for 60 to 70 percent of jobs in most OECD countries. Importantly, SMBs provide resilience in that there are often large economic and social impacts when big companies fail.

Smaller companies are better for regional economies in general, as earnings stay more local compared to big businesses, which in turn generates additional economic activity. SMBs are also better at providing social mobility for disadvantaged groups by giving them opportunities and enabling them to realize their potential.

developing technologies
Smaller companies are often more innovative, bringing to the market novel technologies and solutions such as Cloud, analytics, AI, and IoT

New Companies Introduce New Technologies

There's no denying the role of start-ups when it comes to innovation. In the security industry, many new technologies (e.g. Cloud, analytics, AI, IoT) are first brought to the market by newer companies. In general, smaller companies’ products and services often have to be as good or better than others to be competitive in the marketplace. They are therefore often more innovative, bringing to the market novel technologies and solutions. And these companies are also more willing to try out other new B2B solutions, while larger companies tend to be more risk-averse.

Customer Service

Aside from the quality of products and services, arguably one of the most important components of a security company’s success is its ability to interact with and provide customers the support that they deserve. Smaller companies are able to excel and stand out to their customers in a number of ways:

  • Customer serviceCustomers’ perceptions of a product’s quality are influenced by the quality of support, and smaller manufacturers often possess a strong, motivated customer service team that can be relatively more responsive to customers of all sizes, not just the large ones. A superior level of support generally translates into high marks on customer satisfaction, since customers’ issues with products can be resolved promptly.
  • Flexibility. SMBs have a greater capacity to detect and satisfy small market niches. While large companies generally create products and services for large markets, smaller companies deal more directly with their customers, enabling them to meet their needs and offer customized products and services. And this translates to adaptability, as SMBs become responsive to new market trends. By having a pulse on the market, smaller companies have much more flexibility in their supply chain and can adjust much faster in response to changing demand.
  • Decision-making. Smaller companies are much more agile in decision-making, while larger enterprises often suffer from complex, tedious and lengthy decision-making processes. Communication is easier throughout SMBs, as smaller teams enable new ideas to flow and can solve problems faster.

Job Satisfaction

Employees working for SMBs connect more directly with the company's goals and objectives, which in turn increases motivation and job satisfaction

Employees working for SMBs connect more directly with the company's goals and objectives, which in turn increases motivation and job satisfaction. SMBs are also generally more connected to local communities and participation in community activities leads to a greater sense of purpose. Additionally, SMBs have a much smaller impact on the environment, which is increasingly becoming an important consideration for today’s employees and customers.

Though Schumacher's book takes a much deeper dive into the large global effects of scale on people and profitability, the general impact of a company’s size on its products and services is clear. It’s important for all players in the security industry to remember that the commitment and dedication to product quality can be found in businesses of all sizes.

Ensuring Safety Of People, Property And Assets

Large manufacturers may catch your eye, but small business shouldn’t be forgotten, as they can offer end users a robust set of attributes and benefits. While all security companies are aiming to achieve a common goal of providing safety for people, property and assets, smaller businesses can provide extensive value when it comes to driving the economy, innovating in the industry, providing quality employment and offering superior customer service.

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Jumbi Edulbehram Regional President, Americas, Oncam

Jumbi is currently the President, Americas for Oncam, a maker of 360 degrees cameras and software. He is responsible for all sales, marketing and business development activities in the Americas. Prior to Oncam, Jumbi served as the Director of Business Development for the security division of Samsung Techwin, where he was responsible for managing strategic partnerships with technology partners, consultants/A&Es, and large national integrators. His team was also responsible for developing new business in industry segments such as retail, government and transportation.

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