We report the deformation behavior of single crystalline molybdenum nanopillars in uniaxial compression, which exhibits a strong size effect called the "smaller is stronger" phenomenon. We show that higher strengths arise from the increase in the yield strength rather than through postyield strain hardening. We find the yield strength at nanoscale to depend strongly on sample size and not on the initial dislocation density, a finding strikingly different from that of the bulk metal.