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    Small Teams Build Big Cultures: Lessons for Companies With 20 Employees or Less

    Lakisha DavisBy Lakisha DavisAugust 14, 2025
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    Small Teams Build Big Cultures Lessons for Companies With 20 Employees or Less
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    Small businesses are the backbone of our nation’s economy. When it comes to innovation, creativity, and community, small businesses are often at the forefront, even though major  corporations may get more attention.

    When you’re running a company with fewer than 20 employees, every person and every decision carries significant weight. Culture isn’t an abstract concept reserved for companies with thousands of people on payroll. Instead, it’s built through everyday interactions within your team.

    You may not have the resources and comprehensive  benefits of a Fortune 500 company, but that doesn’t mean you can’t build a big culture. Learn more about how small teams can establish winning cultures in a business world where culture matters more than ever.

    Lead With Purpose, Not Perks

    Larger companies can attract employees with perks you may not  have access to. Onsite gyms and endless snack bars can be  effective for luring talent. However, these massive corporations often lack something small businesses like yours have: a purpose.

    When running a small business, it’s much easier to connect employees to your business’ mission and vision. When every member of your team understands how their work contributes to the company’s success, motivation and engagement rise.

    Founders and leaders in small businesses should be visible, accessible, and transparent when it comes to goals and challenges. Building culture is a top-down concept, and your authenticity as a leader sets the tone. Instead of trying to build your company around trendy perks, focus on conveying your vision and values clearly.

    One of your greatest abilities as a small business owner is to help employees make a lasting impact. In small businesses, everyone’s contributions matter–and that’s something you can nurture every day.

    Build Systems That Encourage Trust and Autonomy

    To foster momentum in your business, you must trust your team. Micromanaging your employees–a problem for companies of any size–can have a more pronounced negative impact in smaller settings.  With fewer than 20 employees, it’s easy to get involved in everything happening each day. Unfortunately, this erodes morale and autonomy, which can create a toxic, untrusting environment.

    Encourage your employees to “own” their projects from start to finish. When you cultivate an environment in which people are free to learn and experiment, you can build a sense of loyalty and trust. Mistakes will occur along the way, but the long-term benefits of letting your employees truly own their work often outweigh the short-term drawbacks.

    Working with a human resources outsourcing company or professional employer organization can help small teams put the right policies and frameworks in place and help you cultivate a winning culture.

    Prioritize Communication Over Hierarchy

    Having a well-defined hierarchy in your small business looks good on paper, but a rigid chain of command has the potential to create bottlenecks within your business. While you do need to define who’s responsible for running the company, it’s important to create an atmosphere that encourages people to communicate horizontally and vertically. This includes structured check-ins and informal communication to keep things running smoothly.

    Small businesses often have a unique advantage over larger corporations because  there are fewer layers between leadership and employees  on the front line. se that to your benefit. Ask for feedback from everyone on your team, and then be prepared to implement some of their ideas. When your employees feel heard, they’re more likely to be loyal to your business.

    When working  with small teams of fewer than 20 people, use technology to streamline communication. Apps like Slack and Asana can help support the culture you’re working to build.

    Offer the Right Benefits to the Right People

    Compensation is key to competing for top talent, but remember that benefits are equally critical. For small businesses, a thoughtful benefits package is one of the most powerful ways to reinforce your culture and values.

    Consider benefits and perks  beyond traditional health insurance and retirement plans as you focus on what matters most to your team. Do they want flexible hours or mental health support? Ask these questions and be prepared to implement the answers. This is where partnering with a professional employer organization can be a game-changer. You can offer small business benefits that rival those of much larger organizations.

    Celebrate the Wins, Big and Small

    When running a small business, every milestone feels personal. Celebrating these moments–no matter how small they may seem–boosts morale and creates a sense of momentum. Whether you’re launching a product, signing a new client to a contract, or celebrating a team member’s work anniversary, publicly acknowledging each of these achievements reinforces what you value as a company.

    Celebrate moments of resilience, collaboration, creativity, and kindness. These are the cultural threads that shape your work environment and employee experience long term. Culture isn’t just built during all-hands meetings or retreats. It’s created in the way  you speak to each other, how you respond to stress, and how you show appreciation.

    Big Culture Empowers Small Companies

    Culture isn’t a luxury that’s reserved for major  companies; it’s also a necessity for small ones. With fewer employees, every action is magnified, and every relationship is more critical. Start with purpose, lead with trust, and never underestimate the power of being a small business.

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    Lakisha Davis

      Lakisha Davis is a tech enthusiast with a passion for innovation and digital transformation. With her extensive knowledge in software development and a keen interest in emerging tech trends, Lakisha strives to make technology accessible and understandable to everyone.

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