Groundbreaking Report Highlights LGBTQ+ Entrepreneurs’ Contributions and Barriers
In collaboration with OutBritain, the UK’s first LGBTQ+ chamber of commerce, the Open Political Economy Network (OPEN) has launched the LGBTQ+ Businesses Count report. This pioneering study examines the contributions, challenges, and unique characteristics of LGBTQ+ entrepreneurs across the UK, offering insights in the absence of official data on this dynamic sector.
The report, supported by sponsors Accenture, Dow, and Goldman Sachs, reveals that LGBTQ+ businesses play a vital role in the UK economy, generating a combined turnover of £106 billion annually. At least 250,000 LGBTQ+ businesses employ more than 750,000 people, many of whom identify as LGBTQ+. Among these, Global Media and Entertainment, founded by openly gay entrepreneur Ashley Tabor-King, stands out as a leading success story.
Challenges Faced by LGBTQ+ Entrepreneurs
Despite their economic contributions, LGBTQ+ entrepreneurs face unique barriers, as highlighted in the report. Key challenges include:
- Doubt and Disclosure Issues: Entrepreneurs reported experiencing invasive or inappropriate questions about their sexual orientation or identity.
- Lack of Role Models: The absence of LGBTQ+ representation in business leadership exacerbates feelings of isolation.
- Discrimination and Disconnection: Many entrepreneurs reported exclusion from mainstream business networks, limiting their opportunities for growth and collaboration.
Strengths and Opportunities
Despite these hurdles, many LGBTQ+ entrepreneurs have leveraged their experiences into strengths. Notable findings include:
- Resilience and Determination: 68% of respondents reported being more driven to succeed because of their LGBTQ+ identity.
- Business Advantages: 67% attributed diverse perspectives and lived experiences as assets that benefited their ventures.
- Customer Base: 42% reported gaining business from an LGBTQ+ customer base, underscoring the value of representation.
Recommendations to Address Challenges
To foster a fairer business environment for LGBTQ+ entrepreneurs, the report proposes three key actions:
- Collecting Better Data:
Companies House should provide the option for company directors to disclose their sexual orientation and gender identity, enabling more accurate public policy and business decisions. - Providing Distinct Support:
An LGBTQ+ business envoy should represent these entrepreneurs in government. Mainstream business organisations must actively include LGBTQ+ businesses in their networks, while OutBritain continues its vital advocacy. - Enhancing Supplier Diversity:
Corporations and public authorities should integrate LGBTQ+ businesses into procurement processes, creating more equitable opportunities and fostering diverse supply chains.
A Call to Action
Philippe Legrain, Founder of OPEN and lead author of the report, stated: Although the UK has made notable strides in overcoming legal inequalities and societal biases, the effects of past challenges still linger. The business sector often lags behind societal acceptance of LGBTQ+ individuals. This report serves as a vital call to action for the government, mainstream business organisations, and corporations to champion LGBTQ+ entrepreneurs and address systemic barriers.”
Matt Dabrowski, Founder of OutBritain, added: OutBritain remains dedicated to empowering LGBTQ+ businesses and facilitating their seamless inclusion in the global marketplace. This report not only highlights their vibrant contributions but also sets the stage for aligning efforts to build a fairer and more diverse UK economy.”
By implementing these recommendations, the UK can not only celebrate the achievements of LGBTQ+ entrepreneurs but also ensure they are empowered to thrive in a truly inclusive business environment.