PEOPLE & CULTURE  /  SME

By Net Supatravanij | First published: October 8, 2021     Updated: July 16, 2026

Growing your small business? Building a diverse, inclusive workplace culture is just as important as your market strategy or business plan.

• DE&I can help businesses of all sizes build a competitive edge, with inclusive teams being 10 times more likely to be innovative than non-inclusive teams. 
• Small businesses can empower employees to drive positive change by creating a DE&I squad, fostering allyship between colleagues, and supporting employee mental health.
• Beyond diversity and inclusion in the workplace, SMEs that demonstrate a broader commitment to social impact will be better positioned to attract talent and earn consumer trust.

It’s a common misconception that Diversity, Equity & Inclusion (DE&I) initiatives are only for big corporations. The truth is, DE&I is essential for companies of all sizes. Building diversity and inclusion in the workplace enables small businesses to support their stakeholders and build a competitive edge.

Research consistently shows that DE&I contributes to business success. For instance, research from Diversity Council Australia found that inclusive teams are 10 times more likely to be innovative and eight times more likely to work effectively together than non-inclusive teams. Workplace diversity can also boost team morale and talent retention: 63% of Asia Pacific (APAC) employees in highly diverse workplaces feel a strong sense of belonging, compared to just 36% in less diverse organizations.

At ila – a social enterprise I co-founded to improve gender equality and inclusion in the workplace – our work has given us first-hand insight into what it takes to drive meaningful change. Whether you’re building a new business or investing in DE&I initiatives for the first time, here are five strategies to help you get started.

1. Create a DE&I squad

A DE&I squad is a team of employees – usually volunteers – who are committed to fostering a safe and welcoming workplace. It’s crucial that the initiative is employee-led, independent from HR (if you have it) or the management team and C-suite (if you don’t).

Depending on your business needs, your squad might have two or 10 members. What matters is that the group remains employee-driven, empowering its members to develop authentic and relevant DE&I initiatives.

At ila, our experience helping organizations build inclusive workplace cultures has shown that the best clients already have DE&I squads. Why? Because these squads are usually the instigators of new and creative ideas to improve company culture while increasing employee engagement.

Your DE&I taskforce can start small. Encourage your team to highlight areas for improvement and propose initiatives they’d like to pilot. You can also consider DE&I training for all employees on key topics such as managing unconscious bias and becoming effective LGBTQIA+ allies.

2. Allocate resources to turn ideas into action

Creating an inclusive workplace culture requires investment. Every DE&I squad needs a dedicated budget to turn ideas into meaningful initiatives. As the saying goes, “put your money where your mouth is”.

You might be surprised by how many businesses we’ve consulted with that believe USD 500 alone can transform company culture. While big budgets aren’t essential for DE&I, having dedicated funding gives teams the resources to implement impactful initiatives without unnecessary delays.

One important resource for SMEs to consider investing in is technology-based DE&I solutions. DE&I tech can support businesses in four areas: talent acquisition, learning and development, employee engagement, and analytics.

For example, blind hiring software can remove identifying details from candidate applications, helping to reduce the impact of unconscious bias during recruitment. Digital tools can also make DE&I training more accessible. At ila, we’ve developed ALLY – a B2B mobile app that trains customer-facing staff to spot and stop harassment and abuse in their venues.

3. Practice allyship

As a rule of thumb, I define an ally as someone who is “Actively Listening and Looking out for You”. When harassment or discrimination happens at work, allies can step in to support colleagues and respond confidently in real time. By doing so, they help transform attitudes and mindsets.

Allies are powerful drivers of positive change, and there are many reasons why every workplace needs allyship. But businesses of all sizes tend to underestimate the impact of allyship, especially between colleagues. A culture of allyship is particularly crucial for small businesses, where teams tend to work closely together without the formal structures that large corporations often have.

Allyship starts with the right mentorship. Provide training to help your team respond to potential workplace exclusion or discrimination, and establish a buddy program to give employees a trusted source of support beyond their line manager. When colleagues feel equipped to support one another, leaders can focus less on enforcing DE&I initiatives and more on amplifying impact.

4. Maximize social impact

Many people assume that DE&I stops at the office door. In reality, its impact can extend far beyond the workplace.

Today’s employees and consumers increasingly value businesses that make a positive impact on society. Globally, 75% of Gen Zs and millennials view an organization’s community engagement and social impact as important factors when considering a potential employer.

These values also influence purchasing decisions: 46% of APAC consumers are drawn to socially conscious brands that demonstrate values aligned with their own, while 48% prefer brands that engage with wider social issues.

Besides fostering diversity and inclusion in the workplace, businesses can explore ways to create a positive impact in the broader community. For instance, companies can support economic equality by sourcing materials from minority-owned, local, or social enterprises.

For small businesses, there’s an even bigger opportunity to demonstrate social and ethical commitment by encouraging employees to co-create solutions. Unlike larger organizations with more complex decision-making processes, SMEs often have the flexibility to listen, act fast, and follow through.

Whether championing DE&I values or environmental causes, businesses that take an authentic stance on social issues can build stronger connections with both employees and consumers.

5. Promote employee wellbeing and mental health

DE&I is closely linked to wellbeing at work. Poor working environments, especially those affected by discrimination and inequality, can pose risks to employees’ mental health. Given that many employees spend a significant amount of time at work – 44 hours per week on average in APAC – employers have an important role to play in addressing mental health concerns.

DE&I efforts can support employee wellbeing by fostering a stronger sense of inclusion, belonging, and psychological safety. Beyond DE&I training, leaders and managers can undergo workplace mental health training to spot early warning signs and provide support. Businesses can also conduct workplace environment assessments to identify mental health risks and develop targeted solutions.

Build DE&I into your business DNA

Diversity, equity, and inclusion aren’t just good for your employees. They also make good business sense. Purpose-driven businesses with a genuine social conscience are better positioned to connect with today’s consumers. At the same time, customers are increasingly looking to support businesses that are inclusive, responsible, and human-centric.

There’s no better time to foster a DE&I culture in your business. Doing it right can help you to retain talent, enhance your brand reputation, attract customers, and most importantly, make the world a better place to live and work in.