Diversity, equity, and inclusion are the flashpoints of businesses in America, changing political landscapes and economic pressures, shaping how businesses approach these initiatives. Under the Trump administration, the DEI program is exposed to increased scrutiny, and many large companies are beginning to scale back their investments in these efforts. But while large businesses are retreating, small business owners are on a different path.
CNBC | Surveymonkey Q1 2025 According to Small Business Survey, many small business owners not only maintain their commitment, but also see the tangible benefits from them. The data demonstrate a clear division amidst the DEI rebound between the stable and practical behaviour of large and small business owners at retreats.
In light of President Trump’s federal DEI policy rollback, when asked about their DEI initiative, Six months (55%) reported that SMEs were implementing some form of DEI in the workplace. Masu. The most commonly adopted DEI practice among small and medium-sized businesses is to implement comprehensive workplace policies, such as anti-discrimination measures and harassment measures. Other popular practices include inclusive employment (31%), local community involvement (27%), and employee-driven workplace culture fostering (26%).
Naturally, political affiliation plays an important role in the recruitment of DEIs. While 80% of democratic small business owners report adopting DEI practices, only 32% of Republican small business owners do the same.
For SMEs who embrace DEI, data suggests that investments are paying off. It has been reported that the DEI initiative has had a positive impact on the success of the business as a whole, but they say that these efforts have had a negative effect.
Beyond general business performance, small business owners cite these specific benefits.
70% of reports improved workplace culture. 69% DEI practice has improved our ability to recruit top talent.
These benefits are particularly important for small and medium-sized businesses, and often face major challenges in attracting and retaining talent compared to large companies. In a highly competitive labour market, promoting an inclusive and fair work environment will help businesses build stronger, more committed teams and give these small businesses a much needed competitive edge. It could be a differentiator.
DEI practices are perceived somewhat differently among age groups. Young business owners 18-34 report the highest level of business success (54%) associated with DEI efforts compared to ages 35-64 (39%) and 65+ (38%). This suggests that for the next generation of entrepreneurs, DEI is not only a cultural benefit, but also a strategic business decision.
Small businesses are taking a different path while Washington and Wall Street tackle Day’s backlash. The latest political and corporate movements have not fallen for simple reasons. Main Street focuses on what works for your business.
– By Eric Johnson, CEO of Surveymonkey
