Profitably Correct

Management is more diverse in small companies than large, and that can be good for business. So concluded the American Management Assn. after studying more than 1,000 member companies. The poll showed an inverse relationship between business size and the ethnic, gender, and age diversity of senior management. On average, leadership at businesses with less than $10 million in sales was 5% African American, 31% female, and 26% under 40 years old. The percentages are just 2.5%, 13%, and 12% at giants of $1 billion or more. From 1996-1997, smaller companies also had better sales growth (19% vs. 8%) and net profits (31% vs. 12%) than the big boys.

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