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Diversity in Entrepreneurship

Diversity in entrepreneurship means being nonhomogeneous and having people of different education, cultural backgrounds, genders and ethnicities in their (management) teams.

It is a fact that companies with diverse teams focus on facts, remain more objective, make smarter decisions, and, as a result, they usually outperform companies composed of homogenous management teams.

To work with people who are different from each other increases the performance. Therefore, entrepreneurial companies embracing diversity are 70% more likely to capture new markets and make more profit (*).

Businesses have to continuously innovate in order to stay in business and be competitive. One of the best ways for innovation is to involve diverse teams and more women in their management. A research on gender diversity in Spain, which included 4,277 companies, concluded that "...companies with more women were more likely to introduce radical new innovations into the market over a two-year period...".

In another research conducted in the UK with 7,615 companies, it was revealed that "...businesses run by culturally diverse leadership teams were more likely to develop new products than those with homogenous teams...".

Management teams usually feel more at ease working with people who have similar backgrounds and who know each other. Yet, this creates a comfort zone and a same-minded environment, which eventually kills innovative thinking.

In net, diversity is a MUST for all innovative and entrepreneurial companies since it helps them to focus, become more innovative and be more successful in the marketplace.

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