schedule a brainstorm sessionWhy DEI Efforts are Still Needed
At Kindall Evolve, we’re disheartened by the current narrative around DEI and affirmative action. Despite some of the narrative you may have seen, programs designed to create more inclusive workplaces, schools, businesses and communities are still necessary. Inequity still exists due to the systemic oppression that remains pervasive. We are not there yet!
It’s vital to recognize that systemic barriers, often deeply rooted in history and institutions, persistently hinder the progress of underrepresented groups. These barriers can include unequal access to education and healthcare,, employment discrimination, wage gaps, over-policing, socioeconomic oppression and more.
Here’s just one example: In 2020, Google faced a significant pay discrimination lawsuit. The U.S. Department of Labor accused Google of systemic pay discrimination against female employees. The investigation revealed that Google had been paying female employees less than their male counterparts for similar roles. This case brought to light gender-based pay disparities and raised important questions about equity and fairness in the tech industry.
Google ultimately paid $118 million dollars to settle the suit.
This case serves as a stark reminder that employment discrimination can occur even in major, well-known companies and industries. It underscores the importance of ongoing efforts to address and rectify pay disparities and discrimination in the workplace.
Another barrier that marginalized people face is access to capital. Access to capital is a cornerstone of economic empowerment. When diverse entrepreneurs have equal access to resources, they can drive economic development and job creation. Diverse businesses bring unique perspectives and solutions to the market. Investing in them fosters innovation and competitiveness, and building an inclusive economy can help level the playing field for all.
Despite this, small business owners of color are turned down for loans more often, despite being qualified. Often, when they do receive loans, they are either for significantly less or come with a higher interest rate, hindering entrepreneurship, innovation, and economic growth. (Source: Black Business Alliance).
It’s a known fact that women receive less investment capital compared to their white male counterparts. In 2022 only 2% of venture capital funding went to women-founded businesses. Women of color only received .39% of the $288 billion dollars deployed by firms. (Source: Fearless Fund) LGBTQ founders fared little better. In 2022, 0.5% of the $2.1T in startup funding was raised by LGBTQ+ founders despite 7.1% of the population identifying as LGBTQ+. (Source: Startout)
So, what can be done about it?
Despite legal pushback, we’re calling on leaders to stand firm in tracking and disclosing diversity metrics related to their funding and investment practices. This transparency can highlight disparities and drive change.
Investors and venture capitalists should actively seek out and invest in diverse-owned businesses, recognizing the value they bring to the marketplace.
Providing mentorship and networking opportunities for underrepresented entrepreneurs can help them navigate the complexities of accessing capital.
If you’re interested in learning more about the efforts to create a more diverse, equitable, and inclusive entrepreneur ecosystem, we recommend this Inclusive Entrepreneurship resource from the Case Foundation.
Through education, awareness, and collective action, we can break down the barriers that perpetuate disparities in access to capital. Together, we can build a more inclusive, equitable, and prosperous future. Stay tuned for more insights on addressing systemic challenges!