Op-ed: Amid DEI retreat, America’s small businesses are not caving like big corporations

Diversity, equity, and inclusion has become a flashpoint in corporate America, with a shifting political landscape and economic pressures reshaping how businesses approach these initiatives. Under the Trump administration, DEI programs are under increased scrutiny, and many large corporations have begun scaling back their investments in these efforts. Yet while big business retreats, small business owners are on a different path.

According to the WHNY News|SurveyMonkey Q1 2025 Small Business Survey, many small business owners are not only maintaining their DEI commitments but also seeing tangible benefits from them. The data signals a clear divide amid the DEI backlash between big businesses in retreat and the steady, practical actions of small business owners.

When asked about their DEI initiatives in light of President Trump’s rollback of federal DEI policies, more than half (55%) of small business owners report implementing some form of DEI in their workplace. The most commonly adopted DEI practice among small businesses is implementing inclusive workplace policies — such as anti-discrimination and anti-harassment measures — with 38% of owners incorporating these into their operations. Other popular practices include inclusive hiring (31%), local community engagement (27%), and fostering an employee-driven workplace culture (26%).

Unsurprisingly, political affiliation plays a significant role in DEI adoption. While 80% of Democratic small business owners report incorporating DEI practices, only 32% of Republican small business owners do the same.

For small business owners who have embraced DEI, the data suggests the investment is paying off. A strong majority — 65% — report that DEI initiatives have positively impacted their overall business success, while only 6% say these efforts have had a negative effect.

Beyond general business performance, small business owners cite these specific benefits:

70% report improved workplace culture.
69% say DEI practices have enhanced their ability to recruit top talent.
60% note a boost in employee happiness.

These advantages are particularly critical for small businesses, which often face greater challenges in attracting and retaining talent compared to larger corporations. In a competitive labor market, fostering an inclusive and equitable work environment can be a differentiator that helps businesses build stronger, more committed teams, giving these small businesses a much-needed competitive edge.

DEI practices are perceived somewhat differently among age groups. Younger business owners 18-34, report the highest levels of business success linked to their DEI efforts (54%), compared to ages 35-64 (39%) and 65+ (38%). This suggests that for the next generation of entrepreneurs, DEI is not just a cultural benefit but a strategic business decision.

While Washington and Wall Street grapple with a DEI backlash, small business is following a different path. The latest political and corporate moves have not trickled down for a straightforward reason: Main Street remain focused on what is effective for business.

—By Eric Johnson, CEO, SurveyMonkey