Entrepreneurship is a powerful force in business, often ushering in the dawn of entirely new industries. Those that succeed can find themselves at the center of disruption or as the next global spanning enterprise.
But the path to entrepreneurship isn’t always balanced. While there are approximately 582 million worldwide entrepreneurs, data indicates that middle-aged men begin the businesses that most often succeed. This disparity is at odds with the concept of entrepreneurship as there are fewer resources available for different genders, races, ethnic groups, and socioeconomic groups.
Inclusive entrepreneurship works to democratize the path to becoming an entrepreneur. This movement focuses on providing new resources to under-served groups, securing financial assistance to those who would otherwise be left behind, delivering robust and relevant mentorship, and offering other business assistance. It seeks to diversify entrepreneurship and bring an even larger pool of innovative thought to the marketplace of ideas.
5 Ways Diversity and Inclusion Power Entrepreneurship
Here are five ways diversity and inclusion can power entrepreneurship.
1. Greater Innovation
Innovation requires creative thinking and new ideas. Innovation is forced into a narrower track with unipolar teams skewed toward one type of thinking or viewpoint. By adding a diverse and inclusive workforce, different perspectives, views, and solutions are added to the mix.
2. Expanded Talent Pool
For most industries, finding the right talent can be a challenge. The talent and skills needed to drive entrepreneurial ventures are even scarcer. By bringing in under-represented groups, the talent pool increases and expands with unique capabilities and ideas.
3. Improved Financial Performance
Generating steady revenue is the goal of every business. There are solid facts behind the reality that companies with greater ethnic and gender diversity are more financially successful than less diverse companies. One study by McKinsey found that companies with greater gender inclusion in executive management were 25% more likely to realize greater than average profitability. The same survey found that the likelihood of better financial performance is up to 36% when companies are ethnically diverse.
4. Enhanced Decision-Making
Like innovation, entrepreneurial businesses work better and accomplish more with a wide range of perspectives. A team of like-minded individuals may veer toward groupthink and may not have the life or work experience to understand value pathways outside their own experiences. An inclusive and diverse team enhances decision-making by adding layers of experience and perspectives, making uninformed decisions less likely.
5. Better Customer Reach
When companies reflect the society in which they operate, it brings them closer to their customer base. Products can be respectfully marketed to better provide consumers with what they need and want.
Finding the Right Path
Diversity and inclusion can power entrepreneurship to new heights. By adding unique perspectives and contributions, new business leaders can put ideas to work for their community and gain access to resources and assistance that have traditionally been limited.
The Henry Bernick Entrepreneurship Centre (HBEC) at Georgian College is committed to helping entrepreneurs of all genders, backgrounds, and cultures discover their potential. We offer solid and relevant mentorship programs, guidance on securing funding and resources, access to connections and networks, and more.
Contact us today to find out how we can help you on your entrepreneurial journey.