Study Finds Smaller Companies Spend More on Routine Expenses Than Large Ones

Chris Gaetano
Published Date:
Mar 9, 2018

A recent analysis finds that companies with less than $100 million in annual revenue actually spend much more in routine expenses like meals and flights than those with over $10 billion, according to Quartz. The study, based on looking at the expenses of over 100 corporations, said that the smaller companies paid 41 percent more for the average airline ticket and nearly twice as much for dinners than the larger companies. While some of this is due to deals larger companies can better negotiate with service providers, the researchers laid much of the blame on undisciplined spending: larger companies are more likely to have policies in place to prevent overspending than smaller ones. Another factor is that startups in particular tend to have a culture of lavish spending, from fancy office furniture to gourmet meals and other perks, in order to attract top talent. 

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