Small is beautiful is the title of a collection of essays written by economist EF Schumacher. Published in the early 1970s – an era best known for the rise of the conglomerate – the book went against the grain to sing the praises of small companies.

For investors, this mantra has proven to be a money-spinner over the past three years as shares in small and mid-sized companies enjoyed a strong run. But smaller companies could face a tough year amid mounting signs that global growth could slow. That said, while smaller companies tend to be more sensitive to the economy, they also have a faster rate of growth and so therefore should not be discounted by investors during a period of downturn.