Work Life Imbalance

Many people start small businesses because they want to be their own boss and run their own life. But new research shows that personal freedom and work-life balancing typically get pushed aside when a small business grows.

In fact, the bigger a small business, the more likely it is that these ideals fall by the wayside, according to a new report by The Guardian Life Small Business Research Institute.

Andrea Schrager, president of Consumer Centers, a consulting, research, and focus group firm, said she started her firm in 1984 so she could care for her two young children and have a manageable working life.

"But the focus shifted as the business grew," she said, of her New York-area company. "Employees and clients were relying on my decisions; I couldn't just put them off because they didn't fit my schedule."

There's cost, though, to growth. The tiny businesses—entities between two employees and 9 employees—typically generate far higher revenues per worker than businesses in the next category, 50 employees to 99 employees, the Guardian Life Index found.

That's because a small business revolves around the principal and his or her small, dedicated staff, according to Mark D. Wolf, director of the Guardian Life Small Business Research Institute.

"As companies move beyond a small, tight-knit team and become larger, more complex organizations, they increasingly look beyond their own expertise for information, operational support and professional guidance," he said.

Even so, difficulties in maintaining productivity don't deter small-business owners from wanting to grow their companies, according to the study, "The Guardian Life Index: What Matters most to America's Small Business Owners."

Some 53 percent of owners with between 50 employees and 99 employees say they want to expand their business. That includes Ms. Schrager, whose company employs 65 people, who said, "I'm constantly looking for new opportunities so I can keep the company on track. If a company doesn't grow, it dies."