Small Business Jargon Decoder

What is Company Culture?

Small Business Jargon Decoder

The Technical Definition

Company culture encompasses the shared values, beliefs, behaviors, and practices that define how an organization operates. It includes both formal systems—such as organizational structure and communication protocols—and informal elements like workplace norms and employee attitudes. A strong, positive culture aligns the team with the company’s mission and strategic goals, fostering employee engagement, retention, and overall organizational performance.

In English, Please

Company culture is essentially the personality of your business—it’s how things are done around here. It’s reflected in the way your team communicates, collaborates, and treats each other. A great culture means everyone shares common values and feels connected to the mission, which can make your workplace more enjoyable and your business more relatable to customers.

Do Small Businesses Really Need to Focus on Company Culture?

Absolutely. Even if you’re a small team, a well-defined company culture can have a big impact. It influences employee satisfaction, shapes customer interactions, and drives everyday decision-making. By intentionally nurturing a positive culture, you can boost team morale, improve service quality, and build a strong, lasting brand identity without a hefty investment.

Common Misconceptions

  • It’s Just a Buzzword. Some think company culture is just trendy jargon, when in reality, it has a measurable impact on employee engagement and business success.
  • It Only Matters for Big Companies. Many assume culture is only important in large corporations, yet even small businesses thrive when their team feels connected and valued.
  • Culture Is Innate and Unchangeable. A common misconception is that culture is set in stone, but it can be intentionally shaped through consistent values, behaviors, and leadership practices.