Introduction The small firm theory suggests that small firms or firms that have a small market capitalization are more productive compared to big firms. Depending on what one is analyzing to gauge the level of output to justify this assertion, it can be true or forces. Small firms are easy to manage, and they are well organized. This reduces the risk of making loses due challenges in supervising large organizations. This paper seeks to analyze the productivity of a small firm to see how its performance outdoes bigger firms. Case study Totemic Limited is ranked number 45 out of 100 best companies in the United Kingdom according to 2014 the United Kingdom Sunday Times survey. The company has one of the most amazing stories in the history of financial services. Interestingly, the company began as a small office in a small garage to the current great global financial service provider. The walk to its current position has, however, not been an easy one as it is with many other companies. It started as an independent financial advisor and later ventured into advising the civil servants. The company mostly focused on individuals serving as nurses, police officers, union members and the armed forces. Some of the current services provided by Totemic include debt management, mortgage and protection advice as well as insurance. Aims and Objectives  1. To identify the advantages that come along operating a small firm and the implications they have on the organization’s output proficiency.  2. To prove that small firms have a greater output in production compared to the big firms.  3. To explore the ethical issues that affect the small firms’ environment and their implications on productivity.  4. To explore the effects of government regulations on small firms. Ethical Issues Ethics is guidelines or rules of conduct that the society is expected to uphold in order to develop a harmonious existence (Stam, Arzlanian, & Elfring, 2014). These guidelines only suggest what humans can or cannot do, and mostly they are based on societal values and cultures. Laws, on the other hand, are legal frameworks that have punitive consequences when they are violated. When laws are broken, there may be fines charged or other associated penalties. This is not the case with ethics. While laws are rules and regulations that have defined penalties and consequences, ethics are simply social guidelines founded on moral ideologies and standards (Stam, Arzlanian, & Elfring, 2014). Legislation, in some cases, may permit some actions that are not ethically justified. For instance, the law demands justice, while ethics promote forgiveness and reconciliation. Ethical considerations in the small firm environment Innovation and technological advancement in small firms have offered solutions to many problems. However, the adoption of some technical applications has led to the infringement of other peoples’ rights. Issues of privacy and information security are some of the common ethical concerns arising from the developments in IT in the small firms’ environment (Gillers, 2012). Through the internet, small firms can track the buying habits of their customers, collect personal information about them, and also monitor their movements. This takes away the right to privacy. Under the guise of enhancing security, small firms can obtain more information from their customers and emplo