Small Businesses Hold Steady on DEI While Big Companies Fold Under Pressure

Small Businesses Hold Steady on DEI While Big Companies Fold Under Pressure

A recent survey reveals that, despite mounting political pressure, most small business owners continue to embrace diversity, equity, and inclusion (DEI) practices, recognizing their value for both employees and the business as a whole. This is in stark contrast to a growing number of large corporations, which have scaled back or eliminated their DEI policies.

Since the Trump administration took office, there has been a concerted effort to challenge DEI initiatives. This included a ban on DEI practices in federal agencies and pressure on private companies to follow suit. While these efforts have successfully convinced several major corporations to abandon or reduce their diversity programs, a new survey shows that small businesses are resisting this trend. According to the latest CNBC-SurveyMonkey Small Business Confidence Poll for Q1 2025, most small business owners remain committed to DEI principles, despite the political climate.

The survey found that 55% of small business owners continue to implement DEI policies. Many view these initiatives as beneficial for their company’s culture, employee satisfaction, and business success. This figure stands in stark contrast to the list of high-profile companies that have dropped their DEI practices under pressure, including major names like Ford, McDonald’s, Walmart, Lowe’s, Target, Molson Coors, Meta, Boeing, and Google. Some of these companies scaled back their programs ahead of the 2024 election, anticipating political shifts.

The Trump administration’s opposition to DEI policies was further solidified with presidential directives that labeled them “deeply unpopular, inflationary, illegal, and radical.” The administration also directed federal agencies to compile lists of private contractors that failed to drop DEI initiatives, threatening legal action. These moves led to many corporations altering or abandoning their DEI practices, though notable exceptions like Coca-Cola, JPMorgan Chase, Costco, and Apple have maintained their stance.

Despite the political and corporate shifts, small business owners largely remain committed to DEI. Of those continuing to follow DEI practices, 38% focus on anti-discrimination and anti-harassment policies, while 31% prioritize inclusive hiring. A quarter promote employee-driven cultures, and 27% make efforts to engage with local communities. The majority of these entrepreneurs (65%) believe that DEI measures have positively impacted their businesses, with 70% citing improved workplace culture and enhanced recruitment abilities, and 60% noting higher employee happiness.

“While Washington and Wall Street wrestle with DEI backlash, small businesses are following a different path,” said Eric Johnson, CEO of SurveyMonkey, in an interview with CNBC. “Main Street remains focused on what works for business.”

However, the political orientation of small business owners often influences their stance on DEI. The survey revealed that just a third of those who apply DEI policies identify as Republicans, compared to 80% of Democrats. Additionally, younger business owners are more likely to view DEI as beneficial, suggesting that while older, established leaders may be swayed by political pressures, newer generations see diversity and inclusion as integral to business success.

As the political landscape around DEI continues to evolve, it seems that many small business owners are staying true to practices they believe benefit their workforce and the bottom line, regardless of the broader corporate climate.

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