What Amish Business Ethics Can Teach Non-Amish Business Leaders

Many people respect the Amish, and their businesses usually thrive, but there can be a dark side to hiding unethical business behavior behind one's faith.

Daniel Schwen

 

Non-Amish businesses can model some Amish small business practices to improve success rates. This is based upon the book "Success Made Simple: An Inside Look at Why Amish Businesses Thrive" written by Erik Wesner and published in 2010 by Jossey-Bass. Wesner cites Department of Labor statistics revealing that 95% of Amish businesses succeed while only 44% of all firms started survive over a five-year period.

Department of Labor Statistics on Small Business Success

Information currently published on the Department of Labor website, as of February 2011, disputes Wesner's figures slightly; citing only 17% of closings as actual small business failure or bankruptcy. Other business closings were not counted as failures because the closings fell under such categories as: businesses being sold, owners retiring, and businesses being incorporated.

Small Business Secrets and Amish Business Ethics

Either way you look at it, with a 95% success rate Amish businesses must be doing a lot of things that work. Some Amish businesses, however, have been accused of crossing an ethical line. Complaints about Amish puppy mills have been popping up in the media since the mid-1990s, with some Amish having been sentenced to prison and jail time for the level of cruelty exhibited in their breeding facilities. Other complaints center around Amish construction firms and Amish wood shops.

Advice for Small Business Based Upon Amish Business Examples

Focus on relationships:

• While most employees in Amish businesses are family members or others from the Amish community, according to Wesner, Amish businesses put relationships first. This caring, personal approach is said to extend to employees, material suppliers, product distributors, and even customers.
• When choosing employees, look at character and desire to work, not just existing skills. Skills can be learned, while character is what it is.
• Be humble. Do not expect an employee to respect you if you give the appearance of thinking you are 'too good' to do the same work you ask him or her to do.

Focus on quality over fast growth:

• Pushing a business to grow too quickly can lead to lower quality. Take the time to make careful decisions and to make sure all the work done under the company's umbrella contributes to your business goals.

What to do Differently than Amish Businesses

Be aware of public opinion. If, for example, many of your customers are from a culture other than your own, it does not matter if owning a puppy mill is okay in your own culture. If you want to do business with people from other cultures, and those people consider your business activity unethical, or even illegal, you might get away with it for a while but your business can lose out in the long run.

Copyright Laure Justice