The ethical perceptions of small business owners: A factor analytic study

Amid the need for research into ethics and small business, empirically-based dimensions or factors are vital for effective theory development. A study analyzed an established ethics instrument to identify the underlying dimensions of ethical values for small firms. A 3-factor structure was identified on the basis of responses of 282 small business owners. These factors were: 1. business development-profit motive, 2. money-related theft, and 3. administrative decision making. The study may have implications for small business owners in establishing an ethical environment within which employees and constituents can work.