28/01/2025
Diversity, equity and inclusion in business matter. Let's find out why.
Black History Month is here. As such, diversity is one of the most widely discussed topics around the world. Most of us consider diversity, inclusion and equity an absolute priority for modern workforces, but what do we mean when we talk about diversity, and why are DEI measures so important for organizations? Let’s take a moment to explore the benefits of diversity in business and outline lessons we can learn from Black entrepreneurs.
What are types of diversity in the workplace?
Diversity refers to differences between individuals—the classifications from which we draw from group identities. As we celebrate Black History Month and discuss diversity in the workplace, it’s key to understand other types of diversity beyond race and how they intersect, creating complex identities and oftentimes increased discrimination. These types include culture, religion, age, gender, sexual orientation, neurodiversity and disability, among others.
Understanding intersectionality and the nuances it brings to the Black experience can bring depth to our conversations on diversity in business—and why it’s key to both societal progress and business success. While more and more countries have laws protecting groups from prejudice, there are still cultural and systematic biases at play in the workplace.
When we talk about inclusivity in business, we refer to initiatives that actively integrate persons of all types in the workplace.
Why is diversity important in the business world?
It’s worth bearing in mind throughout Black History Month that inclusive offices do better business. The benefits of workplace diversity are outlined in a study by McKinsey, whereby diversified companies do up to 39% better with their finances. They’re also better at innovation—a diverse workforce is far more effective at problem-solving because of its varied perspectives. In fact, according to the Boston Consulting Group, diverse companies are 19% more innovative than those who are less inclusive.
The benefits of diversity in the workplace also include attracting talent—and keeping it around. Diversity, equity and inclusion (DEI) workforces are 22% more likely to be seen as an “industry-leading company with high-caliber talent” by jobseekers.
Diversity pushes your commitment to fairness and social responsibility. Consumers pay close attention to your ethos.
The benefits of cultural diversity endure when incorporated at all levels of an organization. And diversity in leadership pushes companies to outperform those without inclusive boards by 27%.
Black History Month: What can businesses learn from Black entrepreneurs’ success stories?
To celebrate Black History Month, let’s look at the impact Black entrepreneurs have had in fostering positive change worldwide. We’ve borrowed from Forbes’ and Shipwell‘s articles to help us—providing you with a short breakdown on what businesses can learn from famous Black entrepreneurs’ success stories.
Cathy Hughes went from teenage mother to media mogul. Hughes gave birth at 17 as a single mother and went on to work at the Omaha Star. Following that, Hughes continued her journey as General Sales Manager for Howard University’s radio station. Revenue grew from $300,000 to $3.5 million during her tenure—an impressive sum for 2025, let alone the 1970s. Following this, after being denied various loans, Hughes and her husband eventually founded Radio One.
The station became Urban One and finally TV One, and is now a pillar of Black media.
Other examples of Black innovators who shaped modern industries include Marie Van Brittan Brown, Garrett Morgan, Granville T. Woods and Shirley Ann Jackson. Marie Van Brittan Brown invented the first remote video doorbell in 1966 and improved security with surveillance, peepholes and remote-controlled locks. Garrett Morgan invented the three-position traffic signal. Granville T. Woods revolutionized travel safety with communication systems between moving trains. And Shirley Ann Jackson’s telecommunications research resulted in the development of touch-tone phones, fiber optics and caller ID. By promoting diversity in business, you support Black innovators to drive change.
What challenges do Black entrepreneurs face in business?
There’s still some way to go with diversity in business. As we ask what challenges Black entrepreneurs face in business, let’s reference Karl George MBE‘s analysis of the topic:
Black entrepreneurs have more difficulty accessing finance; studies show they’re statistically less likely to receive loans and are subject to higher interest rates. Beyond financial obstacles, Black business owners also struggle to access influential networks or mentors.
Growth, collaboration and business success all suffer as a result. This has a domino effect for Black leadership, with a widespread lack of representation in senior roles.
George says that addressing these issues is crucial for progress. He notes that mentorship programs are a key route forward alongside improved access to Black business resources. By promoting a more inclusive environment, we can create opportunities for Black entrepreneurs to thrive. This benefits businesses and broader economies alike.
How can companies foster diversity? Ways to create a more diverse workforce
So, how can companies foster diversity? Steps include DEI principles and internal mentorship programs. Employee resource groups (ERGs) also provide a platform for the workforce to give anonymous feedback to management. This results in actionable policies that enhance diversity in business. These initiatives are necessary in making workplace diversity relate to workplace culture in a meaningful way; the resulting atmosphere benefits everyone.
At IE University, diversity means respecting and embracing what makes us different. Every year, we welcome students, professors and staff from more than 160 countries. Our definition of diversity is split into three main areas: diversity of origin (factors from birth), diversity of experiences and cognitive diversity. We celebrate that each person brings their unique life experience to the table.
IE University aims to promote an environment anchored in curiosity, inclusion and understanding. This positively impacts diversity in business as our students graduate and join the workforce.
As a result, students emerge as global citizens, ready to drive lasting change and positive impact in the world. If you’d like to learn more about our initiatives, please follow the link below.
