The Southend United head coach is one of only eight black, Asian and minority ethnic managers in the Premier League and English Football League.
In January, the Football Association confirmed that it would follow the EFL's lead by introducing a version of American football's 'Rooney Rule', a requirement to interview at least one BAME candidate for every coaching position at St George's Park.
Earlier this month, the governing body revealed an ambition for a BAME coach, assistant manager or manager to work with each of its 28 national sides, but Powell believes that promoting diversity in coaching should not be left to the authorities.
"If we think it's something serious, we all have a role to play in trying to implement it at every level," Powell told BBC Sport.
"It's mandatory in the EFL at academy level so if it works there, why don't we look to encourage it at senior level, to encourage men and women, of all backgrounds, to coach and manage?
"As a black manager, I understand my role in trying to do my job correctly and to inspire others to make a career out of the game.
"I do feel there has been a lost generation of coaches, which shouldn't happen again. We lost some quality players, who, at the end of their careers, felt they wouldn't get an opportunity.
"I think now, in regard to diversity and inclusion, it's a no-brainer. Everyone in football has a role to play in trying to make sure we don't lose good people."
Powell has been linked with a role in the England setup, although Southend confirmed that no contact was made by the FA.