> We can’t fire people on the spot but close enough (here in NL). It’s true ish that we can’t motivate people with fear though, we have to actually make them like their jobs, and carefully consider at the right moment whether to extend contracts. Again, not really a hindrance.

It's not really about motivation. Difficulty of terminating employment can make employees a real liability when you're small if they turn out to be a bad fit.

Bigger businesses can accept it as cost of doing business, but it may break a small business.