Pros
Flexible.
Because of the size and simpler structure, they have a greater capacity to adapt to changes.
It is easier to link the staff to the company
Greater proximity to management and a more global vision of the business (in large companies each employee’s work is less comprehensive and more specialized) will make it easier to emotionally connect the worker with the company’s objectives. This will often increase your motivation, and therefore your productivity.
Cons
Access to less skilled personnel.
Given the greater limitations that an SME usually offers to develop a career (there will be fewer possibilities of advancement), it will be more difficult to attract talented and well-prepared workers who will usually be more tempted to develop their skills in a large enterprise. However, this does not mean that an SME can not attract talent, but will often have to offer other incentives