When a startup is smaller, it is not as scrutinised as for example a big company or a market leader.
This opens up the door to more experimenting, learning from customers without muffled feedback while allowing for more frank communication.
Reference
Fried, Jason, and David Heinemeier Hansson. Rework. 1st ed, Crown Business, 2010.
Highlights or timestamps
Many small start-ups long for mass and greater recognition, but bigger is not always better.
— ^a5cef5 from Rework
Being small also allows you to keep your entire team on the frontline of the business, interacting with customers firsthand and hearing their requirements and feedback. A complex hierarchy can muffle that feedback and slow you down. When everyone is responsible for customer satisfaction, you can respond to any problems quickly, which is essential for effective customer service.
— ^9b3a4f from Rework