07. Small Business Culture
Christopher Collins
Christopher J. Collins, Industrial and Labor Relations, found that small businesses with a family-like environment, where employees are trusted to manage themselves—and this skill is used as a criterion for hiring people into the culture—are more profitable. These small businesses had 22 percent more revenue growth, 23 percent more profit growth, and 67 percent less employee turnover than companies that did not have such an environment. The study was based on surveys of owners, managers, and employees of 323 small businesses that employ between eight and 600 employees in a wide array of industries across the country.