LGBTQ+ businesses contribute £106 billion to UK economy, landmark report finds
The first-of-its-kind report was compiled in partnership between OutBritain and Open Economy Network
By Alim Kheraj
LGBTQ+ businesses in the UK contribute a staggering £106 billion to the economy, according to a landmark report published today (28 Oct).
The first-of-its-kind LGBTQ+ Business Count report was compiled in partnership between OutBritain, the UK’s first LGBTQ+ chamber of commerce, and Open Economy Network (OPEN), a think tank focused on diversity and tech, to fill a hole left by official UK data about the LGBTQ+ businesses.
Based on the largest-ever survey of UK LGBTQ+ entrepreneurs, the report found that there were around 250,000 LGBTQ+ businesses in the UK that employ at least 750,000 people, with 57% employing a majority of LGBTQ+ people.
“Business tends to lag behind society as a whole in its acceptance of LGBTQ+ people” – Matt Dabrowski, OutBritain
However, despite the significant and vital contribution that queer-owned businesses provide to the economy, the LGBTQ+ entrepreneurs survey noted a number of unique barriers and challenges that affect queer businesses.
Of those entrepreneurs surveyed, 57% said that doubt and a lack of self-confidence was something that they had faced.
Meanwhile, 44% had experienced invasive or inappropriate questions about their identities, while 37% said they had encountered some form of discrimination. Respondents also reported feeling like outsiders in the business world, with 36% saying that they were disconnected from mainstream business networks.
Despite the challenges, there are positives to operating a LGBTQ+ businesses. In fact, 83% of those surveyed said that their business had benefited from being LGBTQ+, with seven out of ten saying their identities made them more determined to succeed. Similarly, 67% suggested that a diversity of perspectives and experiences led to business benefits.
Of course, there are still disparities among LGBTQ+ businesses. The majority (61%) of LGBTQ+ entrepreneurs identify as gay, while nearly two-thirds (64%) said they were men. Likewise, 89% of LGBTQ+ entrepreneurs are white, 4% from mixed or multiple ethnic groups, 3% Asian or Asian British, and 2% Black, Black British, Caribbean or African.
The report identified three recommendations that would support LGBTQ+ businesses to overcome some of the barriers and difficulties they face, including better data collection, specific support and increased representation, and supplier diversity.
In a statement, Philippe Legrain, Founder of OPEN and lead author of the report, said: “While the UK has made huge progress in tackling legal injustices and social prejudices against LGBTQ+ people, the past leaves scars.
“Moreover, business tends to lag behind society as a whole in its acceptance of LGBTQ+ people; among the chief executives of the FTSE 100 leading companies, only one is openly gay. So, it is hugely important to document both the contribution and the challenges of LGBTQ+ entrepreneurs in the UK, which is why we have produced this report as a call to action to the government, mainstream business organisations and large corporations.”
Matt Dabrowski, Founder of OutBritain, added: “OutBritain has become a beacon in the UK’s business landscape, demonstrating how diversity is not merely a tagline but a potent catalyst for unprecedented change. Supporting LGBTQ+ businesses and seamlessly integrating them into the global economic ecosystem is at the heart of our organisation.
“This report not only celebrates the vibrant and dynamic contributions our community make to the UK’s economy, but more importantly, it will allow us to focus and align our efforts in driving a fairer, more diverse UK economy where LGBTQ+ entrepreneurs and businesses are given fair representation and the opportunity to thrive.”
To read the full report, visit opennetwork.net.