Our goal is to be the entry point to resources that promote entrepreneurship. Organizations partner with EntryPoint to foster an inclusive culture, build connections, and advance research and messaging for education, outreach and advocacy purposes. We are frequently asked about the business case for building a diverse, equitable, inclusive entrepreneurial ecosystem – so we decided to start aggregating academic resources.
If you have see a study we may have missed, please e-mail a link to the original research to Info@EntryPointMI.com.
Delivering through Diversity both tackles the business case and provides a perspective on how to take action on I&D to impact growth and business performance. This latest research reaffirms the global relevance of the correlation between diversity (defined here as a greater proportion of women and ethnically/culturally diverse individuals) in the leadership of large companies and financial outperformance.
Research provides compelling evidence that diversity unlocks innovation and drives market growth. The full study can be found here.
In recent years a body of research has revealed another, more nuanced benefit of workplace diversity: nonhomogenous teams are simply smarter. Working with people who are different from you may challenge your brain to overcome its stale ways of thinking and sharpen its performance.
Being around people who are different from us makes us more creative, more diligent and harder-working
Research has shown that hiding our true identities can cripple professional performance. For instance, closeted LGBT employees feel much more isolated at work than their openly gay peers, and 52% of closeted employees feel their careers have stagnated, compared to just over a third of their out colleagues. But this isn’t just an issue for LGBT professionals.
A diverse workforce is integral to a strong economy. A diverse workforce combines workers from different backgrounds and experiences that together breed a more creative, innovative, and productive workforce. And businesses have learned that they can draw upon our nation’s diversity to strengthen their bottom line. In this way, diversity is a key ingredient to growing a strong and inclusive economy that’s built to last. Review 10 economic benefits of workplace diversity.
Does Diversity Pay? Race, Gender, and the Business Case for Diversity, April 2009, American Sociological Review
The value-in-diversity perspective argues that a diverse workforce, relative to a homogeneous one, is generally beneficial for business, including but not limited to corporate profits and earnings. This is in contrast to other accounts that view diversity as either nonconsequential to business success or actually detrimental by creating conflict, undermining cohesion, and thus decreasing productivity. Using data from the 1996 to 1997 National Organizations Survey, a national sample of for-profit business organizations, this article tests eight hypotheses derived from the value-in-diversity thesis. The results support seven of these hypotheses: racial diversity is associated with increased sales revenue, more customers, greater market share, and greater relative profits. Gender diversity is associated with increased sales revenue, more customers, and greater relative profits.
Venture capital firm, First Round Capital, reviewed 10 years worth of proprietary investing data — since they’ve been capturing data about their founding teams since their first investment in January 2005. After diving into the data and testing various assumptions, First Round Capital surfaced “10 Lessons” that they wanted to share with the whole industry.