The LGBTQ+ community is the fastest-growing minority segment in the United States, with close to $1.4 trillion in spending power, according to a 2021 government census.
While it is impossible to know the exact number of American businesses owned by LGBTQ+ today, the National Gay & Lesbian Chamber of Commerce (NGLCC), through its 2022 America’s LGBT Economy Report, estimates that all LGBT-owned businesses in the country contribute more than $1.7 trillion to the U.S. economy.
NGLCC’s 2022 report also showed that the states of California, New York, Texas, Florida, and Georgia have the most concentration of LGBT business enterprises (LGBTBEs) and represent more than a third of the entire nation’s total number of certified LGBTBEs.
According to NGLCC Co-Founder and President Justin Nelson and NGLCC Co-Founder and CEO Chance Mitchell, more than a third of the Fortune 500 companies, many top federal agencies, major urban municipalities, the Commonwealth of Massachusetts, and the Public Utilities Commission of California actively seek out and welcome our innovative and certified LGBT business leaders.
Nelson and Mitchell stressed that business will continue to be a catalyst for positive change for America’s minorities, including the LGBT community, to pursue the vital work for economic equality, one small business at a time.
What do LGBTQ+ entrepreneurs need the most to continue thriving in 2023? Funding.
A 2022 report published by JP Morgan said access to capital remains a greater challenge for LGBTQ+ founders than the general population of company founders.
JP Morgan reports only 0.5% of all funding for startups goes to LGBTQ entrepreneurs, despite more than 7% of Americans self-identifying as lesbian, gay, bisexual, transgender, or non-heterosexual.
In the same report, StartOut Growth Lab Director of Programs Tarik Perkins said, “Despite receiving half a percent of all startup dollars over the past 20 years, LGBTQ+ founders have excelled when given opportunities.” He added, “LGBTQ+-founded companies today create 36% more jobs compared to the average entrepreneur.”
Perkins also pointed out that LGBTQ+ founders have created 114% more patents than the average entrepreneur. And are 44% more likely to exit, despite having 16% less funding.
Visit https://nglcc.org to view the full 2022 America’s LGBT Economy Report.