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Small Business Needs More Diversity in Leadership


In a not too distant past, diversity at the leadership level was not as common; nor was it commonly agreed upon 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 business, let's agree on a couple of simple principals for this article:

  • Diversity should almost never come at the expanse 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 business should be the main place where inclusion and diversity takes place.


It doesn’t matter what school of thought you prescribe to and it doesn’t matter where you look: small business is the backbone of 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 of 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.


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.

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