Race doesn't exist scientifically. We are all humans, but society decides to slap on a term called "race" base on people's physical appearance. Some people use the term ethnic group interchangeably.

Thus, the word "culture" is plenty enough to say there are different people in one particular species. And indeed, besides humans there should be different sub-cultures within the other species.

Personally, not too fond of gnomes, but since dallas likes them, by all means. I mean, how the heck do they survive prior to technological invention? Humans are plenty weak enough biologically, so I can't imagine how tiny people can survive that well on a mountain. Even hawks and eagles may proof dangerous to a gnome.