Fintech PR
LGBTQ+ businesses contribute over £106 billion to the UK economy despite huge challenges, report finds
- Based on largest-ever survey of UK LGBTQ+ entrepreneurs
- Sector focus on tech, fintech, biotech and sustainability
- Challenges include disclosure issues, discrimination and doubt
LONDON, Oct. 28, 2024 /PRNewswire/ — In partnership with OutBritain, the UK’s first LGBTQ+ chamber of commerce, Open Political Economy Network (OPEN), a leading think tank focusing on diversity and tech, has today launched its LGBTQ+ Businesses Count report, which examines the contribution, challenges and characteristics of LGBTQ+ entrepreneurs across the UK. In the absence of official UK data on LGBTQ+ businesses, this pioneering report presents the results of the largest-ever survey of LGBTQ+ entrepreneurs in the UK.
The report, sponsored by Accenture, Dow and Goldman Sachs, estimates that there are at least 250,000 LGBTQ+ businesses in the UK, which employ at least 750,000 people, many of them LGBTQ+, and have a combined turnover of at least £106 billion. The largest business founded by an LGBTQ+ entrepreneur that the report identifies is Global Media and Entertainment, which owns Heart, Capital, LBC and many other radio stations, whose founder and CEO Ashley Tabor-King is openly gay.
Most LGBTQ+ entrepreneurs in the report’s survey pointed to particular challenges that they have faced in business because of being LGBTQ+. The most prevalent was doubt, followed by disclosure issues, notably invasive or inappropriate questions and a lack of role models. Next were discrimination and disconnection from mainstream business networks.
At the same time, most entrepreneurs mentioned benefits to their business from being LGBTQ+. Some 68% said it made them more determined to succeed and overcome adversity and 67% that their diverse perspectives and experience yielded business benefits, while 42% gained from an LGBTQ+ customer base.
To mitigate some of the challenges faced by LGBTQ+ entrepreneurs, OPEN proposes three recommendations on collecting better data, providing distinct support and developing supplier diversity:
- Better data. Good public policy, sound business decisions and broader public understanding all require solid data. Companies House therefore ought to ask (but not require) company directors to disclose their sexual orientation and gender identity.
- Distinct support. To ensure that LGBTQ+ businesses have a voice in government, an LGBTQ+ business envoy should be appointed. Mainstream business networks should also be more pro-active in attracting, including and representing LGBTQ+ businesses. OutBritain also has a crucial role to play.
- Supplier diversity. Both large corporates and public authorities ought to do more to enhance equality of opportunity for diverse businesses, notably LGBTQ+ ones, in their procurement decisions. This would help LGBTQ+ businesses overcome the entrenched disadvantages they face, while providing corporates with more diverse and resilient supply chains.
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, said: “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.”
NOTES TO EDITORS
ABOUT THE REPORT #LGBTQBusinessesCount
The report is based on an online survey of 1,517 self-identified LGBTQ+ business founders and owners conducted between January and May 2024.
ABOUT OUTBRITAIN
OutBritain, the UK’s first LGBTQ+ chamber of commerce, connects, supports and grows the UK LGBTQ+ business community, while connecting it with the rest of the world.
ABOUT OPEN @open2progress
OPEN is an international think tank that focuses on diversity and other openness issues. Its previous reports include Minority Businesses Matter: The Contribution and Challenges of Ethnic Minority Businesses in the UK.
DISCLAIMER
OPEN gratefully acknowledges the financial support of the sponsors of this report, Accenture, Dow and Goldman Sachs. At the same time, the content, words, opinions and views are solely its own and do not necessarily reflect the institutional views of said sponsors or any of their affiliates.
PRESS CONTACTS
info@opennetwork.net
matt@outbritain.co.uk
Report https://www.opennetwork.net/wp-content/uploads/2024/10/OPEN_LGBTQ-Businesses-Count-final_hi-res.pdf
Photo https://www.opennetwork.net/wp-content/uploads/2024/10/slide-cover-hi-res.png
Photo – https://mma.prnewswire.com/media/2540471/LGBTQ_Businesses_Count.jpg
