What Small Businesses can do around Diversity and Inclusion

We have seen far more resources going into Diversity and Inclusion than ever before, with a growing understanding that businesses need to tackle this as an issue as a priority.

Much of our focus has been on the large, multinational organisations and what actions they are taking. This does make sense, after all they have the larger market shares and influence, as well as the resources to genuinely drive better standards in this area.

But what about the small businesses? After all, in the UK, of the nearly 6 million total business population, 99% are Small and Medium Enterprises. Fortunately in many SMEs there has also been a growing interest in doing more around diversity and inclusion. Unfortunately though, much of the work of D&I practitioners focusses on culture change for large organisations, meaning that smaller businesses are left without much guidance or support that really benefits their needs.

I’ve been speaking to some local businesses about this recently. Some of the issues relate to a lack of resources to tackle this issue, a lack of expertise in this area or their regional location where there is less diversity in general. On top of this, simply surviving during COVID has taken been one of the most difficult battles for many local businesses, meaning additional aspirations on this agenda can be tough to justify.

That being said, it is worth stating that many of the strong business reasons for D&I apply for small businesses as well. For example:

  • Serving diverse customers is a way to diversify business revenues. Offering products and services for underserviced communities can open up additional opportunities for a local business.
  • customers have a growing societal conscience around Diversity and Inclusion. People may be put off taking services if they feel a business is not representative or is not taking action to support the agenda. This is particularly important for community-based businesses.
  • By creating an inclusive culture, businesses making people feel more comfortable working there. Happy staff = productive staff (and less turnover).
  • Attracting wider talent pools will help small organisations get the best talent available. This is particularly critical for small businesses in ethnically diverse areas who may not otherwise attract individuals from different backgrounds.  

It’s also not all doom and gloom for small businesses in being able to act in this area. After all, Small businesses are more nimble, and much more likely to be connected to their local community, giving them a closer insight into local diaspora and are better able to build genuine relationships with key community leaders for different groups. Multinationals on the other hand have a hard time getting passed being seen as ‘faceless’, and shifting priorities mean community relations can often fall by the wayside. Likewise, it is far easier to shift the internal inclusive culture of a small business, compared to a large organization employing thousands of people.

So with this is in mind, I have created a list of actions small businesses may want to consider. These are intentionally bitesize to take into account limited resources, as well as the relative strengths small businesses have:

  • Have you asked how your employees feel? Have you asked them what it is like to work in your business? How do they feel about diversity and inclusion?
  • As a small business, you are likely already well-linked to your local community groups. Explore these avenues further to get a better understanding of what potential customers are out there, and what needs are currently not being met for them. Take a particular look at those from different backgrounds you may not have considered before.
  • Review your promotional material and website. How representative are they of different groups? Would they appeal to these groups? 
  • See where you are advertising. Is there a way you can diversify your approach, e.g. getting in contact with local mosque, diverse community groups, ethnic diaspora local newspapers etc.?
  • And if you would like to go a step further, take time to see how diversity and inclusion can be incorporated within your wider business plan and strategy.

These are my tips for small businesses to take more action around Diversity and Inclusion. What do you think? Are there any actions small businesses have taken that you have been particularly impressed by?

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