As corporate America faces increased scrutiny over diversity, equity, and inclusion (DEI) initiatives, small business owners are taking a different approach. Despite the political and economic pressures reshaping the landscape, many small businesses are not only maintaining their DEI commitments but also seeing tangible benefits from these efforts.
According to the CNBC|SurveyMonkey Q1 2025 Small Business Survey, over 55% of small business owners report implementing DEI practices in their workplaces, signaling a sharp contrast to the scaling back seen in large corporations. The most common DEI practices include inclusive workplace policies (38%), inclusive hiring (31%), community engagement (27%), and fostering an employee-driven culture (26%).
The political divide is evident, with 80% of Democratic small business owners incorporating DEI, compared to just 32% of Republicans. For those who have embraced DEI, the results are promising: 65% say these initiatives have positively impacted their overall business success.
Specific benefits reported by small business owners include:
- 70% saw an improved workplace culture
- 69% found it easier to recruit top talent
- 60% noted a boost in employee happiness
For small businesses, especially in a competitive labor market, DEI is proving to be a key differentiator, helping them build stronger, more committed teams. Younger business owners, from ages 18-34, report the highest levels of success from DEI efforts, with 54% linking it to improved business performance, compared to 39% of those aged 35-64 and 38% of those 65 and older.
While Washington and Wall Street grapple with DEI pushback, small businesses remain focused on what drives success—creating inclusive, equitable environments that benefit both their people and the bottom line.
