Bangalore: New ventures or startups drive job creation rather than established small businesses, states a new paper from Bloomberg Government. It hovers over three million jobs each year, more surprisingly small businesses older than one year are shown in the bottom line due to their failure. However, statistics show that eight out of ten new businesses fail within the first five years, the reasons being varied. Any mistake in tweaking the management, whether it is money or man, is one of the important reasons for such closure.

Small businesses including startups are an important contributor towards the increasing global economy of the world. Nevertheless, hiring good people depends on the "Three Facets of Managing People in the Startup”. These are:

Impact and Influence of Founders' Characteristics

It is a trend blindly followed in every startup organization that the workers, mostly the first few hires of the company tend to follow their founders and executives blindly as they have faith and respect for their ideas and values. One of the key questions and assessments, when hiring people is to explore whether they are culture fit. Culture is difficult to define, but the most of it depends on the characteristics of the founders as to what kind of environment they create at the work. Being a powerful element that shapes one’s work enjoyment, work relationships and work processes, but culture is invisible, except through its physical manifestation in the work place. Founders through their rejuvenating character can create a moist and healthy environment wherein employees can work more efficiently showing better results.

When the organization’s way of doing business provides a successful adaptation to environmental challenges and ensures success, those values are retained. These values and ways of doing business are taught to new members as the way to do business. For example, the personalities of its Founders Ben Cohen and Jerry Greenfield, the two high school friends who opened up an ice-cream shop in 1978 in Vermont are being still followed by the company after its acquisition by Unilever in 2000. Their strong and social convictions led them to buy only from the local farmers and devote a certain percentage of their profits to charities. The core value can still be traced in the company as they are devoted to social activism and sustainabiilty, and still continues to contribute to charities, use environmental friendly materials and dedicate to creating jobs in low-income areas.