SMEs: The Power to Change the World
If you’ve been anywhere near a news feed in the last few years, you’ll know diversity and inclusion have manifested themselves as one of the main priorities for many businesses. Yet surprisingly, a total 78% of UK companies’ senior leadership teams fail to reflect the demographic composition of the country’s labour force and population.
Where homogeneity prevails, full access to the employee talent pool is restricted and potential for market expansion is limited, creating inabilities to understand and connect with differing consumer groups. It’s no secret that diversity breeds innovation. And indeed according to studies by the CBI, employees say they’re 83% more likely to innovate and more than twice as engaged in workplaces that are both diverse and inclusive.
Additionally, businesses that successfully incorporate diversity and inclusivity are more able to maximise profits. For example, it has been found that achieving gender parity within a workforce can equate to a huge 41% revenue gain. Further studies by Deloitte conclude that companies with inclusive talent practices in hiring, promotion, development, leadership and team management generate up to 30% higher revenue per employee and greater profitability than their competitors.
It’s no secret that many business leaders want to bring about this change, but where to start? According to most paid-for social media posts, it’s Fortune 500 companies that are leading the charge. This could be argued against, as we believe that if you want a real catalyst for change, look at small businesses. Why? Because small business is big business. They drive the global economy and the statistics speak for themselves; small businesses account for 95% of businesses around the world. In wealthier countries such as the USA and UK, the figures are even greater; accounting for 99.9% of all businesses.
By the sheer power of numbers, small businesses collectively possess the strength to enable change and make the world a better place, far better than any Fortune 500 company ever could. Not only that, historically speaking, it’s always been small businesses at the forefront.
Determined visionaries, such as Sir Richard Branson and Anita Roddick, are the people we’ll remember in years to come. Branson set out to create a business that aspired to do more than just make money, by embedding a sense of purpose and inclusion within his company and implementing measures to give back to society. Roddick, famous for pioneering one of the first ethically sourced and cruelty-free cosmetic brands, was one of the first to bring the use of natural ingredients into the mainstream. Starting as a small business with only 25 products, she pioneered the end of the industry norm of animal testing, as well as introducing Fair Trade beauty products to world.
Their passion for changing the world is a huge contributing factor to the success of their businesses. However, it is not always possible for small businesses to repeat such dizzy heights of success. The ability to access and secure sufficient funding, raise awareness, or effectively manage multiple streams of data from finance to HR can mean make or break in a business’s first few years of life; regardless of their mission.
These deal-breaking factors are arguably the greatest hindrance preventing them from their full potential as a major driving force of change, and this is where platforms, such as ours, come in. As well as looking to promote equal opportunity for all within our own company, our mission is to allow business leaders to have greater control of their data and finances, and to help like-minded individuals get more control over their own internal processes.
By helping business owners to operate more efficiently and with greater financial clarity, these platforms facilitate access to funds and data management that allows small businesses to get their message out there. In turn, this enables them to fulfil their mission of creating a better life and a better world.
You’d be surprised by how small a catalyst is needed to change the way business is approached. Numerous studies have shown that as little as 10% of a market enacting change is all it takes for the majority to adopt that process. With 99.9% of the UK economy composed of small businesses, the numbers no longer seem so daunting and the impossible starts to become possible.
Technological advances that allow operational functions to be automated (i.e. AI), as well as Blockchain, which enables data to be securely stored and distributed, are now giving small businesses the chance to punch above their weight. With efficiency costs drastically reduced, we can start to focus on what can really drive businesses. Studies have shown that having the freedom to enable more diverse hiring practices enhances creativity, as well as better business decisions.
Developing a greater sense of cultural awareness, a crucial element in keeping up with globalisation, and opening access to a whole new spectrum of the talent pool, are essential for harnessing the highest levels of skill both in recruitment and on the job. What’s more, there is an abundance of Venture Capitalists (VCs) with visions of bettering the world, looking for companies to invest in, that harness similar desires to advocate change.
There’s some great examples of VCs out there doing exactly that; DBL investors and Intel Capital are particularly great examples. DBL’s core approach focusses on Corporate Social Responsibility and achieving a “double bottom line”, where successes are both long term financial gains, and in the form of positive social, environmental and economic impact on society. Intel Capital boast the largest Centure Capital resource ever created to focus on underrepresented entrepreneurs in the technology sector. All that’s needed to unite the two is a platform dedicated to improving small businesses, enough to make them a worthy and stand out candidate. Throw in Blockchain to handle and distribute data, along with an automated dashboard of performance, and things become far easier than anything we could have managed even five years ago.
There’s no question that change is coming. More diverse business practices and equal opportunity for all are long overdue. Start by changing things on a small level needs, to really make things happen. Think you’re too small to change the world? Remember Apple? Jobs and Wozniak started out of a garage. Bezos from Amazon? He once had cinderblocks supporting his desk.While it may take far more than what’s in our power to keep the ball rolling on positive change, we truly hope our platform will provide a small stepping stone to provide greater clarity and keep things going in the right direction.