Scientific Opinion Poll: Small Businesses Hire Diverse Entry-Level Workforce, More Can Be Done to Increase Diversity in the Hiring of Upper-Management Employees

For Immediate Release: 
Wednesday, October 14, 2015

Small business owners hire a diverse set of entry-level employees; more can be done to increase the number of women and minorities in upper-management positions

Washington, DC - A scientific opinion poll released today shows small business hiring of lower-level employees is diverse and varies geographically, but more can be done to increase diversity in the hiring of upper-management employees.

The poll, conducted Jan. 15-Feb. 3, 2015, by Greenberg Quinlan Rosner Research on behalf of Small Business Majority, found that the proportion of women and minorities working in non-management positions at small businesses reflects the diversity of America. The poll found 7 in 10 small businesses have at least one female employee, 24 percent have at least one Hispanic employee, 18 percent have at least one African-American employee, 8 percent have at least one employee with a disability, 6 percent have at least one American Indian or Alaskan native employee, 5 percent have at least one Asian or Pacific Islander employee and 24 percent report having at least one other non-white employee.

"As a small business owner and diversity program manager of a technical recruiting company, I have learned a lot about implementing sustainable and effective diversity plans," said Charlotta Carter, CEO of GRI Technology Staffing Solutions in San Mateo, California. "From the outset, my company has looked outside the box to find the very best candidates, including candidates with diverse backgrounds. Why? Because I know this will increase my company's creativity and innovation and ultimately lead to business growth, increased profits and an enhanced corporate brand. It's a win-win for everyone."

While small businesses have a diverse workforce among their lower-level staff, women and minorities are underrepresented at the management level. Among management or non-entry level staff, 35 percent are women, 9 percent are African-American, 8 percent are Hispanic, 6 percent have a disability, 2 percent are American Indian or Alaskan native, 1 percent are Asian or Pacific Islander and 6 percent represent another non-white minority.

The poll also found 3 in 10 small business owners plan to hire or promote in order to increase the diversity of their high-level workforce within the next few years. "While some business owners plan to make it a priority to improve diversity among their high-level employees, we believe more can be done to improve these numbers and increase diversity in the workplace," said John Arensmeyer, Founder & CEO of Small Business Majority. "Hiring more women and minorities - especially at the management level - helps foster creativity and spur innovation. Both small business and the communities that support them would benefit from having a diversified workforce."

The poll also found diversity among small business employees varies geographically, as owners hire from the community around them. For example, employers in Mississippi or Louisiana are more likely to have an African-American (47 percent and 45 percent, respectively) employee, while employers in New Mexico are more likely to hire at least one Hispanic employee (62 percent). Owners themselves also play a role, as women are more likely to have at least one female staffer (82 percent), and non-white owners are more likely to have at least one African-American (47 percent) or Hispanic (41 percent) employee.

"It's encouraging to see the findings that small business owners are hiring a diverse set of employees that reflects the demographics of their communities," said Loren Harris, director of family economic security for the W.K. Kellogg Foundation. "However, this polling shows there's more to do around education and understanding the benefits of increasing diversity at the management level for small businesses."

This poll reflects a telephone survey of 500 small business owners from around the country with state oversamples in Louisiana, Michigan, Mississippi and New Mexico. Funding for the poll was provided by the W.K. Kellogg Foundation.

For the full poll report, please visit:
http://www.smallbusinessmajority.org/small-business-research/diversity

For the state-specific poll reports, please visit:
Louisiana:
http://www.smallbusinessmajority.org/small-business-research/diversity/LA

Michigan:
http://www.smallbusinessmajority.org/small-business-research/diversity/MI

Mississippi:
http://www.smallbusinessmajority.org/small-business-research/diversity/MS

New Mexico:
http://www.smallbusinessmajority.org/small-business-research/diversity/NM

About Small Business Majority
Small Business Majority is a national small business advocacy organization, founded and run by small business owners to focus on solving the biggest problems facing America's 28 million small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong, sustainable economy. We are a team of more than 30 working from our 11 offices in Washington, D.C. and 9 states, with a network of more than 45,000 small business owners and more than 2,000 business organizations, along with a formal strategic partnership program of more than 125 business organizations, enabling us to reach more than 500,000 entrepreneurs. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about issues including taxes, healthcare, access to capital, entrepreneurship, workforce development, clean energy and immigration. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.