I don't have an enormous amount of experience, but I have had the experience of seeing sharply-contrasted approaches to testing.
In one job, there was no automated testing. "Testing" consisted of poking around in the application, trying whatever popped in your head, to see if it broke. Needless to say, it was easy for flat-out-broken code to reach our production server.
In my current job, there is lots of automated testing, and a full CI-system. Now when code gets broken, it is immediately obvious. Not only that, but as I work, the tests really document what features are working in my code, and what haven't yet. It gives me great confidence to be able to add new features, knowing that if I break existing ones, it won't go unnoticed.
So, to me, it depends not so much on the size of the team, but the size of the application. Can you keep track of every part of the application? Every requirement? Every test you need to run to make sure the application is working? What does it even mean to say that the application is "working", if you don't have tests to prove it?
Just my $0.02.
