Towards a Socially Conscious Start-up Brand: EDI in Entrepreneurial Branding

Abstract

Successful start-ups are those capable of evoking customer loyalty. To achieve this, a well-crafted brand with a clear brand message that resonates with the target audience is needed. The pandemic, and its aftermath, has led to heightened scrutiny of brands by audiences, with consumers spending more time and money online. Purchase decisions and brand loyalty are increasingly influenced by what brands stand for, with a preference for those that believably prioritise people over profits. Nearly two-thirds of UK consumers expect brands to address societal issues. This trend is particularly pronounced among Generation Z, the fastest-growing demographic in the UK and other advanced economies in terms of spending power. This age cohort differs in several respects from preceding generations, showing a distinct hunger for social causes relating to equity, diversity and inclusion (EDI). This paper presents findings from an investigation into Generation Z's perception of EDI as part of entrepreneurial market communications. Our research aims to explore the target audience's awareness and attitude toward the inclusion of EDI elements in start-up brands and to ideate tangible recommendations for entrepreneurs in terms of embracing EDI as part of their brand’s activities. Guided by Design Thinking, a total of 35 semi-structured interviews were conducted with young adults in Greater London, UK. Through inductive Thematic Analysis, four key themes emerged: (i) There is currently limited visibility and awareness of start-ups with EDI branding; (ii) there is a desire for authenticity alongside distrust of brands delivering on this; (iii) there is an expectation of intersectional diversity; and (iv) there is a limited risk of 'cancel culture' for start-ups. Based on these insights, four tangible recommendations were formulated for crafting socially conscious start-up brands: (i) embrace intersectional diversity internally and externally; (ii) cultivate a community to co-create EDI initiatives; (iii) utilising/collaborate with existing EDI associations; and (iv) prioritise EDI efforts in branded communications.