Inclusive leadership in digital startups impacts creativity, organizational culture, and business performance. We evaluate the literature to determine how inclusive leadership behaviors and practices affect employee innovation and work environment. Inclusive leadership is essential to psychological safety, diversity, and inclusion. These variables boost tech startup employee innovation, collaboration, and engagement. Inclusion improves employee satisfaction, productivity, and retention, which boosts business performance. This study highlights the importance of inclusive leadership for tech startup CEOs to maximize the potential of their diverse staff. Leaders may encourage creativity, information sharing, and collaboration by creating an inclusive workplace. These efforts yield corporate gains and a tech industry edge. This study lays the groundwork for future research on the mechanisms and contextual elements that make inclusive leadership practices in tech startups successful. In the fast-changing tech startup world, inclusive leadership drives innovation, culture, and business performance.