The Importance of Diversity for Small Businesses

2020 was a chaotic year rife with unprecedented challenges for businesses. Companies that wanted to survive, let alone thrive, had to adapt to the rapidly changing circumstances and regulations. As we enter 2021 a focus on diversity, equity, and inclusion (DEI) is essential to remaining competitive.

In this article, we will focus on how a DEI-focused mindset will enrich your small business, connect you to your customers, and benefit your community. We’ll also focus on practical ways businesses can embrace diversity and the potential challenges along the way.

1) It Provides Your Company With a Different Perspective

As humans, we all have a perspective that is limited to our life experiences. When you have a homogenous group, like the European fintech industry, they often approach the problem with a similar approach. Individuals from diverse backgrounds have different ways of achieving the same results. And in many cases, this may provide a better way of solving the problem. When your company has a diverse team, you better understand your customer demographics. Using this demographic information and understanding, you can better serve your customers, enhance the customer experience, and expand your client base.

You can enhance your company’s ability to innovate and respond to challenges with a diverse team that brings different viewpoints, ideas, and ways of solving problems and looking at new opportunities.

2) It Enhances Your Talent Pool

Training your employees, especially those from diverse backgrounds, allows you to identify which team members have the potential to grow within the organization, especially when given support. Individuals from marginalized populations may not have had the opportunity to get the education and training they need to take their careers to the next level.

Alternatively, this worker may not have ever imagined it was possible, because they never saw anyone who looked like them in their dream position. Investing in an employee’s education not only adds value to your company but can also strengthen their loyalty to your organization.

3) It Can Create Better Vendor Relationships

Last year, pharmaceutical giant Biogen announced they were moving $10 million in funds to OneUnited Bank, one of the nation’s largest Black-owned financial institutions. This was part of Biogen’s commitment to DEI.

Want to learn more about diversity and inclusion?

A focus on DEI isn’t just a moral principle. It’s a practical step that can greatly enhance your company’s success and ability to compete.

Hiring diverse people and allowing them to have a voice within your company can bring new perspectives and viewpoints. This is an invaluable asset to have in the modern world and one that should be integrated into your company’s everyday core values.