The global entrepreneurship sphere is seeing a rising interest in supporting LGBTQ+ founders and their businesses, focusing on bolstering business skills and employment creation. A host of initiatives are taking steps towards empowering LGBTQ+ individuals to find their footing as confident entrepreneurs.
These programs offer mentorship and train participants with the necessary business tools to build and expand their startups. They are promoting a wave of economic prosperity and creating jobs, further strengthening communities and the economy as a whole.
On the other side, corporations, venture capitalists, and angel investors are acknowledging the unique insights LGBTQ+ founders can bring, fostering an inclusive and productive environment. It is important to note, supporting LGBTQ+ entrepreneurs is seen as a step towards a more equal, inclusive, and vibrant economy.
However, according to StartOut, a nonprofit dedicated to LGBTQ+ entrepreneurship, a mere 0.5% of approximately $2.1 trillion in startup funding went to LGBTQ+ founders between 2000 and 2022. This tiny percentage points on the prevalent funding gap and oppressive systemic biases that hinder LGBTQ+ entrepreneurs.
Examples like Ben Stokes, founder of Chasing Rainbows, only prove the need for further advocacy and action. Stokes has sparked a broader change in the business sector, attracting attention and support from significant venture capitalists.
Empowering LGBTQ+ founders boosts economy
His journey serves as a testament to resilience and innovation in the face of adversity.
Despite these advancements, LGBTQ+ entrepreneurs are still struggling. While the LGBTQ+ community constitutes 7.2% of the U.S. population, it received only 0.5% of startup funding between 2020 and 2022. These startups are primarily centered around five major cities, showing a distinct geographical disparity. Leading cities like Orlando, Florida; Charlotte, North Carolina; and Birmingham, Alabama, have no LGBTQ+ founders, adding to the growing problem.
Brian Richardson, StartOut’s CEO, theorized a link between comprehensive nondiscriminatory policies protecting LGBTQ+ individuals and the upsurge of queer entrepreneurship in a city. In his view, widespread anti-LGBTQ+ policies might cause significant economic and employment discrepancies. Through StartOut, Richardson hopes to counteract these adverse impacts by supporting LGBTQ+ business owners and promoting inclusivity and diversity in the business sector.
These findings point to a compelling connection between inclusive policies and a prosperous entrepreneurial environment within the LGBTQ+ community, underlining the need for further research and equitable action in the future.
