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While I'm no longer in school, I can relate to having been a member of a smaller chapter. When I was an active member we were typically one of the smallest three or four chapters sororities on campus. However, they've managed to work pretty hard and become one of the more medium sized chapters, with somewhere between 70-75 members (total is now 85).
Benefits to being in a smaller chapter - like CarolinaDG said, there's lots of leadership opportunities, because bascially everyone has to do something. I held a lot of different offices, some of which I wouldn't have been considered for had we been at total.
We did have a great sisterhood when we had 45-50 members. I knew a lot about almost every single one of my sisters and I knew them well. HOWEVER, I noticed for the past two years as membership continued to grow that that sisterhood strength is still there. They might have to exert more effort to know each other well, but they still see the value in it and put the time into it.
Downsides - Recruitment is a constant thing - it never stopped. And it seems to wear members out because they've got that going on along with everything else.
Finances are a big part, especially when you have a facility. It's hard to stay in the black sometimes if your numbers are hurting. One of the things that helped my chapter was that we owned our facility. Unfortunately, while lots of chapters on campus, might be getting major renovations, you don't. Lack of money also puts a damper on your already hurting social situation. Bigger houses might have multiple big functions a semster - maybe you get one.
I never got to live out-of-house (other than the time I spent in the dorms). To me this wasn't a big deal, I really liked living in the house. My sorority was really close to campus and I liked being around all my sisters, but to some people they really want to be able to experience 'apartment living' before leaving college.
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