Diversity is a strategic priority for 6 in 10 startups
by Startacus Admin
New research undertaken by Innovate UK indicates that diversity is set to be a key strategic priority for startups in the year ahead.
Nearly two thirds of start-ups (63%) say that making their workforce more diverse is a strategic priority in the year ahead, according to new research from Innovate UK. Innovate UK found a further fifth (22%) of start-ups say they have done some work to make their workforce more diverse but could do more, and only 16% say making their workforce more diverse is not a strategic priority.
Across all start-ups, nearly three quarters have diversity targets, regardless of whether they are currently recruiting or not.
Despite the demand for diverse talent, Innovate UK found that more than half of companies say it is difficult to find and recruit diverse talent and three quarters cite a barrier that can prevent them hiring more diverse talent. The biggest barriers start-ups face are a lack of applications (not enough opportunities to interview diverse talent followed by a lack of candidates with experience in similar roles (13%).
Start-ups believe the greatest actions that could encourage more diverse talent to enter their sector are education-linked. The top solutions – both cited by a third of start-ups – are incentives to study STEM subjects at schools and universities, and publicly funded apprenticeships, work placements and secondments.
Start-ups are extremely positive about the tangible business advantages that a diverse workforce brings. Nearly three quarters say it improves their ability to innovate, two thirds say it’s an important part of the company’s ethos, and more than half say it improves the ability to attract talented candidates and commercial performance .
Surprisingly, two thirds of start-ups say a diverse workforce is not more attractive to investors, highlighting the work to be done to showcase the positive benefits of diversity in early-stage businesses to the people that help fund their growth.
Jonny Voon, Head of the Sustainable Innovation Fund at Innovate UK, says: “It’s no surprise that start-ups are choosing to prioritise diversity. Our research shows that a diverse workforce brings immense benefits to start-up life, boosting everything from workplace culture to R&D and business performance. But while start-ups are keen to expand the diversity of their workforces, it’s clear that finding the right talent remains challenging.
“Some of the key barriers centre around access to the education and work experience opportunities that help diverse candidates gain entry to key innovation sectors. There is clearly more work that can be done to expand education and career pathways, but also to demonstrate the power of diverse teams to investors so that the best businesses get the funding they deserve. This can help deliver game-changing companies led by a range of diverse talent who, through their success, can inspire the next generation.”
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
The lowdown on OneThird, the foodtech startup that's tackling food waste via its innovative solution for predicting the shelf life of fresh produce.
Karen Meager, co-founder of Monkey Puzzle Training shares some insights on how leadership has changed in the last decade, and what it takes to be a great leader today.
Freight rate management platform Freightify raises Series A investment to support further international growth and mission to help more freight forwarding companies digitize their operations.
Crowdfunding success for Omni, the vegan dog food brand, reaffirms the recession-proof growth of the pet nutrition industry.
Want to learn a new language? Weeve is an innovative startup that has created an innovative, creative and effective way to help you do just that.
Want to build an investable, scalable tech startup? The Raise Accelerator programme is now open for applications and will help you do just that.
Want to increase visual engagement for your startup's Instagram account? These tips will help you do just that.
Fashion innovation thanks to Italian Artisan and its B2B one-stop marketplace that connects international brands with hard-to-get authentic artisans.
Want to gain an edge over your business competitors? Listening to your audience is an absolute must.
The Clothes Doctor mission to fight fast fashion continues as the innovative eco clothing care brand raises £1m to support further growth.
Published on: 8th March 2022
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.
- Freightify secures $12M funding round to power digital transformation for freight forwarders 2nd Feb 2023 Freight rate management platform Freightify raises Series A investment to support further international growth and mission to help more freight forwarding companies digitize their operations.
- Vegan Dog Food Brand, Omni Smashes £400K Crowdfunding Target 1st Feb 2023 Crowdfunding success for Omni, the vegan dog food brand, reaffirms the recession-proof growth of the pet nutrition industry.
- Raise Spring Accelerator programme seeking applications for next cohort 30th Jan 2023 Want to build an investable, scalable tech startup? The Raise Accelerator programme is now open for applications and will help you do just that.
- Leading French Travel Co. Offers Mentoring to two UK startups on its prestigious two-month programme 23rd Jan 2023 High-potential social impact startups from the UK sought for the 9th annual Les Tremplins by Voyage Privé programme.
