Diversity and Inclusion in New Zealand’s Startup Scene
The startup ecosystem in Aotearoa New Zealand is flourishing, with over 2,400 startups across the country despite our relatively small population of just over 5 million. As these young companies grow and shape the future of our business landscape, there’s an increasing recognition of the critical role that diversity and inclusion (D&I) play in building innovative, resilient, and successful enterprises. This article explores the current state of D&I in New Zealand’s startup scene, the unique opportunities and challenges faced by startups in this area, and practical strategies for fostering a more inclusive entrepreneurial ecosystem.
The Current Landscape
New Zealand’s startup community is making strides in diversity, but there’s still significant room for improvement. According to a 2022 analysis by Startup Genome and the New Zealand Ministry of Business, Innovation, and Employment, 26% of Kiwi startup founders are women – a notable increase from 16% in 2017. This progress is encouraging, but it still falls short of gender parity.
When it comes to ethnic diversity, the picture is more complex. While 28% of New Zealand startup founders are immigrants – higher than the national immigrant population of 23% – only 5% of founders identify as Māori, despite Māori making up 17% of the overall population. This underrepresentation highlights a crucial area for improvement in our startup ecosystem.
The Startup Advantage
Despite these challenges, startups have a unique advantage when it comes to building diverse and inclusive cultures. Unlike larger, established companies, startups have the freedom to write their own diversity, equity, and inclusion (DEI) rules from day one. This flexibility allows them to bake inclusivity into their DNA from the outset, rather than trying to retrofit it later.
Elina Ashimbayeva, founder of online diversity resource Storyo and a facilitator with AllySkills NZ, emphasises this point: “It’s going to be a lot harder when you’re a mostly white male team of 20 or 100 and you suddenly say ‘hey, let’s get more diversity on the team’. When you try to do it late, it can feel jarring to those communities.”
The Business Case for Diversity
Beyond the moral imperative, there’s a strong business case for diversity in startups. Diverse teams bring a wider range of perspectives, experiences, and ideas to the table, leading to more innovative solutions and better decision-making. This is particularly crucial in a startup environment, where adaptability and creativity are key to survival and growth.
Moreover, diversity can help startups avoid costly mistakes. Ashimbayeva points out the example of the Apple Watch, which was recently challenged for scanning less effectively on dark skin. “If everyone around your product building and testing table all come from similar backgrounds, it probably never occurs to them what other groups might experience,” she explains.
Strategies for Fostering Diversity and Inclusion
For Kiwi startups looking to enhance their D&I efforts, here are some practical strategies:
- Start with a Diverse Leadership Team: Diversity at the top sets the tone for the entire organisation. Make a conscious effort to build a leadership team that reflects the diversity you want to see in your company.
- Build a Culture of Flexibility: Flexible work arrangements can make your startup more attractive to a diverse range of talent, including working parents, people with disabilities, and those from different cultural backgrounds.
- Implement Inclusive Hiring Practices: Look beyond your immediate network when hiring. Consider using blind recruitment techniques to reduce unconscious bias, and actively seek out candidates from underrepresented groups.
- Create Meaningful Policies: As Ashimbayeva notes, “Marginalised people want to be with companies that have meaningful, actionable policies. It’s not just about spending money on rainbow flags for Pride month.” Develop and implement policies that genuinely support diversity and inclusion.
- Engage with Diverse Communities: Actively engage with diverse communities through sponsorships, partnerships, or volunteer work. This not only broadens your network but also demonstrates your commitment to diversity.
- Provide D&I Training: Arrange diversity and inclusion training for all employees to raise awareness and provide tools for creating an inclusive workplace culture.
- Use the “Red Team” Technique: Ashimbayeva recommends using this technique to explore all the ways your product could be misused, not used, or negatively impact different communities.
Embracing Māori Principles
A unique aspect of fostering diversity and inclusion in New Zealand’s startup scene is the opportunity to incorporate Māori principles and values. Many Kiwi founders are driven by a desire to create positive change beyond just financial success, reflecting honoured Māori principles of community betterment.
Initiatives like Kōkiri, an entrepreneurship and startup accelerator exclusively for Māori participants, and NGEN Room, a digital media training program focused on young, primarily-Māori individuals, are helping to bridge the gap and encourage Māori entrepreneurship.
The Road Ahead
While New Zealand’s startup scene has made progress in diversity and inclusion, there’s still work to be done. The underrepresentation of Māori founders, the gender imbalance, and the need for greater ethnic diversity remain challenges to be addressed.
However, the unique position of startups – their flexibility, their ability to shape their culture from the ground up, and their drive for innovation – puts them in an excellent position to lead the way in creating more diverse and inclusive workplaces.
As Ashimbayeva wisely advises, “You can’t do everything. But if you pick one thing per quarter, and focus on it for three months, you’ll be way further along than most companies.”
By embracing diversity and inclusion from day one, New Zealand’s startups can not only build more innovative and successful businesses but also contribute to shaping a more equitable and inclusive society. In doing so, they’ll be living up to the collaborative, purpose-driven ethos that characterises the best of our nation’s entrepreneurial spirit.