Hand size generally correlates to finger span, and a larger finger span can definitely make some things easier to play (usually involving positional playing) - specifically at speed.
Finger span can also aid in playing chords, especially on extended-range instruments that have more than four strings.
Due to the physical size of the average bass guitar, there aren't really any specific advantages to having smaller hands or a smaller finger span. That said, smaller hands/smaller finger span don't have to be disadvantages. It just depends on what you're doing. It's also worth noting that there exist physically smaller instruments which nullify the issue entirely - scale length, string spacing, and neck widths are all variable.
Overall, I think that having larger hands is advantageous on bass guitar, which is a generally large instrument compared to its cousins. But not having big hands isn't a dealbreaker.