How equity, diversity and inclusion strategies can support small and medium-sized enterprises

On Oct. 24, 2024, Canadian SME hosted its annual Small Business Summit at the Metro Toronto Convention Centre. Thousands of people attended, including business leaders, small business owners from retail, manufacturing and information technology sectors, and government officials, for a full day of panel discussions and networking. The event focused on the 2024 theme, Fueling Canadian Small and Medium-sized Businesses With Digital Transformation, Inclusion, and Adaptability. 

The day began with Rechie Valdez, Minister of Small Business, delivering a keynote address emphasizing the influential role that small businesses play in the Canadian economy: “We’re seeing Canada’s economy getting stronger.” She advocated for the services, programs and support that help businesses thrive and grow, touching on her experience as an entrepreneur, and discussed the Women Entrepreneurship Strategy, a $7-billion federal investment that aims to level the playing field for women entrepreneurs, and that supports DI’s Women Entrepreneurship Knowledge Hub (external link) . “When everyone gets a fair shot at turning their ideas into reality, our communities can thrive and Canada can thrive,” Valdez said.

Darian Kovacs, founder of Jelly Digital Marketing & PR and Jelly Academy, moderated the panel on the importance of fostering inclusive workplaces and the benefits diversity brings to small businesses with Wendy Cukier, founder and academic director of the Diversity Institute and academic research director of the Future Skills Centre (external link) ; Whilna Stewart-Franklin, community relations director at UPS Canada; Anukul Sharma, chief financial officer at Futurpreneur; Laurel Stroz, senior manager of IDEA and wellbeing at Co-operators; and Andria Barrett, community advocate and founder of the Diversity Agency. 

Kovacs opened by asking the panellists to talk about the business case for equity, diversity and inclusion (EDI). Cukier highlighted that the number one impediment to growth for small and medium-sized enterprises is attracting and retaining talent, noting that in Toronto one-half of the population is racialized and one-half the population is women. “So if you’re focused on white men, it’s a pretty shallow pond,” she said. Moreover, Cukier noted, small businesses that are led by immigrants are more likely to export, and export is a key driver of growth. She also said that as the marketplace is becoming more diverse, an organization's employees must also be diverse so that they have the products and services that meet the needs of the customers. “You miss opportunities if you don’t have the pulse of your customers.” Another reason organizations should care, Cukier said, is that governments, investors and other stakeholders are looking at organizational practices before they make investments and give grants. “Environmental and social issues are now a big deal.” 

Stewart-Franklin spoke about unconscious bias. Using education as an example, she said that sometimes the employee who has worked in an organization for a decade can be overlooked for a new worker with a master’s degree, highlighting how such bias leads to making assumptions about people—and losing out on talent. Cukier agreed, adding that this kind of bias is tied to privilege. She emphasized the need to look beyond the surface level and what privilege may have afforded someone because talent is success minus opportunities and resources. Therefore, when recruiting, she said, it’s really important that when you’re looking at someone, you’re understanding their context and experience. 

Stroz spoke about the important foundational role of policy in EDI strategies. She highlighted that policy to improve EDI needs to be upheld with accountability measures. She provided the example of a hotline where issues can be reported and then followed up without the employee having to fear repercussions. “Policy is a very strong supporter of those strategies, but having clear accountable actions to back up those policies is what will really change culture,” she said. 

Sharma emphasized the importance of a transparent and open culture and said that EDI is a journey, not a destination. “Culture eats strategy for breakfast,” he said. Barrett added that a culture change comes from the top down. “It starts with the board,” she said. The Diversity Institute is an ecosystem partner of the 50 – 30 Challenge, an initiative to increase representation (external link)  on boards and in senior leadership. By signing up for the challenge, organizations pledge to achieve gender parity (50% women and/or non-binary people) and significant representation (30%) on Canadian boards and/or senior management of members of other equity-deserving groups. 

Kovacs asked the panellists how organizations can measure change. In response, Cukier raised the importance of disaggregated data. “The best EDI strategy is one that looks like your corporate strategy,” she said. “Embed an EDI lens in everything you do.” The Diversity Institute’s Diversity Assessment Tool Application (DAT App) has been used by more than 400 organizations to develop strategies. The application is free—and organizations receive an assessment (external link)  on their EDI policies, suggestions for improvement and examples of best practices.