Psychological safety refers to a person's belief that they can express themselves without fear of negative consequences. It is associated with various favorable outcomes for the individual and the organization. The aim of this research was to examine some antecedents at the organizational level and consequences of perceived psychological safety in small enterprises. The research was conducted on 109 employees from 52 small businesses or trades in Croatia. Employees completed an online questionnaire battery in which they assessed their supervisor, the organization, and some job related attitudes. At the organizational level, no correlation was found between supervisor's gender and psychological safety, but a positive correlation was found between transformational leadership and psychological safety, which remained statistically significant even when controlling for gender of the supervisor, gender of the subordinate, and educational level of the supervisor. At the individual level, significant correlations were found with all the presumed consequences of psychological safety. A positive correlation was found between psychological safety and job satisfaction, as well as between psychological safety and work engagement, while a negative correlation was found between psychological safety and turnover intention. All correlations still existed when controlling for gender of the supervisor, gender of the subordinate, and tenure of the subordinate within the organization. Following the discussion of the results obtained, methodological limitations, guidelines for future research, and practical implications were outlined.