Small Businesses with Diverse Workforces Perform Better Financially
Small businesses with a diverse workforce are more innovative and financially successful, according to data gathered by SCORE, a network of volunteer, expert business mentors.
Data shows that businesses with more diverse management have 19% higher revenue and are more likely to outperform non-diverse businesses.
Diverse teams are more innovative, and therefore, perform better financially:
- Gender-diverse businesses are 21% more likely to outperform homogeneous businesses.
- Ethnically-diverse businesses are 33% more likely to outperform.
- Non-diverse-businesses are 29% more likely to underperform.
- Businesses with below-average diversity earned 26% of their revenue from innovation.
- Businesses with above-average diversity earned 45% of their revenue from innovation.
- Diverse teams make better and faster decisions:
- Diverse teams make decisions two times faster with half the number of meetings.
- Decisions from diverse teams deliver 60% better results.
Employees heavily value diversity and inclusion at work:
- 67% of job seekers said a diverse workforce is an important factor when evaluating job offers.
- 57% think the business they work for should be doing more to increase diversity among its workforce.
- 72% would consider leaving an organization for one they think is more inclusive.
“Small businesses with diverse teams have a greater ability to produce creative ideas that catch the attention of consumers, and resonate with a more widespread audience,” said SCORE CEO Bridget Weston. “Additionally, with 67% of job seekers saying a diverse workforce is an important factor when evaluating a job, small business owners understand that in order to recruit and maintain the best team, they’ll need to emphasize the importance and value of diversity and inclusion in the workplace.”
Tags: Small Business, Workplace Diversity