Jerry,
There generally is 2 or 3 things that can cause tear out like you are discussing. One you have an aggressive blade installed, or Two your ply that you are using is not solid or Three the piece is vibrating from the cutting. Personally I would use a zero clearance insert and insure that I had a good sharp blade that for wood that small should not be over a #3 ultra reverse ( flying dutchman ) or a 2/0 spiral if that is what you choose. The zero clearance insert will give your work the needed support to keep it from flexing and breaking from cutting. Hope this helps.
DW