The smaller your business the more obvious and distruptive your people related problems and 'bad apples' will be.
Interestingly, as your business grows, the company will be divided into departments and smaller working units.
So in reality, a business is always going to be dealing with people related issues.
One of the jobs of the entrepreneur and business leader is to define how you want your people to conduct themselves. The job of the manager is to support and mentor people to behave and conduct themselves consistent with the vision and goals of the organization.
Several key decisions a business must make include:
How much mentoring and time will we provide a "bad seed" to become a good seed before we ask them to move on.
How are we going to mentor people effectively?
How are we going to monitor their progress?
Answer these questions and you will be well on your way to creating the best possible working environment.