Small Businesses and DEI

Learn the importance of small businesses and DEI initiatives in fostering equity, diversity, and increased profitability.

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Learn the importance of small businesses and DEI initiatives in fostering equity, diversity, and increased profitability.

As an architect and small business owner — not to mention as an American acutely aware of the complex history of this nation of immigrants — it’s galling to witness how the Trump administration’s national conversation around diversity, equity, and inclusion has devolved into a counterproductive and false dichotomy: You’re either for DEI in all its manifestations or against the concept entirely. This oversimplification is particularly distressing for small businesses, where relationships are personal, and the stakes are real.

The Strategic Bait-and-Switch

DEI initiatives evolved from the Civil Rights Act and affirmative action with the goal of creating fairer workplaces, a more equitable society, and a stronger democracy. And bottom-line data support these goals. Companies that embrace DEI programs see stronger revenue and more profitability — opening opportunities for diverse perspectives from historically marginalized groups.

While most people support these goals, some implementations have overreached, including rigid quotas, ideological conformity tests, and bureaucratic approaches that create legitimate frustrations and easy targets for critics.

Here’s what’s really happening: Critics position themselves as simply “moderating excesses”; however, many anti-DEI efforts are actually using reasonable concerns as cover to dismantle equity efforts entirely. They weaponize valid critiques of specific policies to attack the fundamental premise that systemic inequities exist and need to be addressed.

Recognizing the Difference

For small business owners caught in this crossfire, distinguishing between adjusting approaches versus abandoning principles has never been more critical.
Constructive engagement and adjustment would mean evaluating which DEI practices actually drive results in your specific context. A ten-person firm doesn’t need Fortune 500 processes. It means adapting approaches to fit your unique culture and resources while maintaining core commitments to opportunity and fairness. It means acknowledging that bias and bigotry require constant vigilance and recognizing the obvious truth that we all do better when we all do better.

Wholesale abandonment of DEI would mean using complaints about awkward training sessions to justify returning to purely network-based hiring. It means dismissing documented patterns of inequity as irrelevant or framing all equity considerations as “political distractions.” At its most egregious, it means using DEI implementation failures as a pretext to dismiss everyone who isn’t a heteronormative white male as a “DEI hire” and unqualified.

The adjustment mindset asks: “How can we make equity work better here?” The abandonment mindset declares: “See? Equity doesn’t work anywhere.”

Small Business Advantages

Plain and simple: DEI encapsulates our present moment and future. By 2030, the workplace will have a majority of people of color and women. Though leadership at many companies remains majority white, Amazon, Microsoft, and other giants are recognizing the competitive advantage DEI offers across their workforces and boardrooms.
So how can small businesses catapult the reality of diversity into strategic wins? While there is a strong moral case for DEI, small businesses also have structural advantages in creating equitable workplaces when they focus on principles rather than inflexible programs.

Proximity to impact: Small teams may see more immediate benefits of diverse perspectives and inclusive practices.

Adaptability: Less bureaucracy means more ability to try different approaches, refine what works, and abandon what doesn’t.

Community connection: Local businesses that hire from their communities better understand the diverse people they serve and recognize their unique needs and contributions.

Personal relationships: Genuine inclusion efforts can feel more authentic when not filtered through corporate HR departments.

A Strategic Path Forward

The path forward isn’t abandoning equity goals when certain approaches fall short. It’s about developing common-sense approaches that align with small-business realities.
This means having honest conversations about where DEI efforts have been counterproductive, without using those examples to undermine the legitimate need for more equitable workplaces. Equity isn’t a “corporate luxury” but a business fundamental that drives innovation, attracts talent, and builds stronger connections with diverse customer bases.

We need to stop letting bad-faith actors hijack legitimate concerns about bureaucratic bloat to gut equity efforts entirely. Yes, some DEI programs got clunky or missed the mark; that’s fixable. What’s not acceptable is using valid critiques as cover to dismantle progress that actually strengthens businesses and communities.

I have witnessed architecture undergo a remarkable transformation within little more than a single generation—evolving from an almost exclusively white, male profession to one where women now comprise 53% of architecture students, many of whom come from diverse ethnic backgrounds. The result? An industry that’s never been more innovative, productive, or vital.

This evolution offers a blueprint for broader change. The current political moment demands strategic clarity, not retreat. As a new administration works to restore outdated hierarchies, we face a choice: retreat or accelerate toward the equitable society that most Americans actually envision. The data is clear: diversity drives innovation.

For small business owners, the question shouldn’t be whether to pursue equity, but how to do so in ways that match your specific context, resources, and strengths. The goal isn’t perfection but progress—creating workplaces where talent and contribution matter more than background or identity.

The path forward: Acknowledge what needs fixing, refine our methods, but never compromise on the commitment. The majority is still with us—we just need to be savvier about how we get there.

Michael Roehr
Michael Roehr is an architect and small business owner in Minneapolis.