In a not-too-distant past, diversity at the leadership level was not as common, nor was it commonly agreed upon as a beneficial practice. Though still not at desirable levels, such practices are more widely discussed and accepted. However, most discussions around diversity tend to be around midsize and larger organizations; supposedly having a “trickle-down effect” if those larger organizations lead by example.
Before going into its necessity for small businesses, let’s agree on a couple of simple principles for this article:
- Diversity should rarely come at the expense of qualification.
- Diversity is proven to have a positive impact on revenue and profits.
Now that we have established some ground rules, let’s move on to why small businesses should be the main place where inclusion and diversity take place.
Key Takeaways
- Diversity in Leadership should start with small businesses because they are the backbone of economic growth and employment.
- Discussions about diversity often focus on larger organizations, but small businesses can set an example for inclusivity.
- Implementing diversity requires early integration into planning; this avoids complications later on in established businesses.
- Key elements for successful diversity initiatives include balancing selection and considering local demographics.
- Encouraging diversity in leadership within SMBs can prompt larger organizations to adopt similar practices.
Table of Contents
Why Diversity?
It doesn’t matter what school of thought you subscribe to, and it doesn’t matter where you look: small business is the backbone of the United States economic growth engine. It equally employs the largest number by leaps and bounds. So one would wonder why we expect large companies to lead the way in having more diverse and inclusive leadership. The answer is: we shouldn’t. We should expect diversity and inclusion to “trickle up” from small businesses not only because of their unparalleled dominance but even more importantly because of their inherent flexibility, nimbility, and adaptability.
How?
So, since Small Businesses (SMB) are so dramatically dominant, how would or should they go about such diversity and inclusion? Most of the conversations on SMB starts around entrepreneurs and their ability to succeeded in highly competitive markets where the competitions is not static: not only is it likely that they are already either competition with established businesses but also trying to create interruptions, but they also have to wrestle with the traditional challenges of SMB including funding, human resource management, production and quality assurance as well as consumer dynamics.
So, when and how do they even have time to attend to “abstract” philosophical concepts such as diversity and inclusion? The answer is: from the get-go.
Considering all the challenges mentioned above daily challenges, there is very little time to pivot in ways that allow for integration of additional requirements that may have secondary and tertiary impact on operations in general. So the right time for integrating diversity and inclusion into the overall organizational structure has to be in the very early stages of planning the organizational structure and future.
But what if we are talking about an established SMB?
Though a bit more complicated in an established setting, it is not only feasible but also practical. In those instances, it is a matter of prioritization: considering that human capital management is one of the most important challenges both in terms of planning and impact, it stands to reason that it is the perfect point of start for implementing appropriate measures.
Planning & Forethought
It is virtually impossible to have recommendations that apply across the board because of the variety of internal factors, such as organizational structure, as well as external factors, such as local governing laws.
However, some of the basics can include considerations of balance in selection, local and regional demographics, organizational culture, and makeup. Essentially, the gist of it is to include variables that enable both demographic diversity and organizational philosophy.
What does it all add up to?
In spite of the fact that we didn’t even examine the positive real impact of diversity and inclusion in terms of tangible results, such as increased ROI, there are plenty of reasons to expect SMBs to be a major disruptor in how we include diversity in our leadership hiring. Just like answering thoughtful this or that questions helps reveal different perspectives, SMBs dominate the market and are nimble and flexible enough to justify meaningful pivots.
Let’s encourage diversity in leadership and inclusion in SMB so it can encourage the large organizations to follow suit.
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