LGBTQ+ entrepreneurs starting businesses in record numbers

• Some 10% of entrepreneurs who started their own businesses last year identified as LGBTQ, according to Gusto.
• LBGTQ-owned businesses contribute $1.7 trillion to the U.S. economy, according to the National LGBT Chamber of Commerce.
• Small business owners have found support amid DEI backlash

In the face of the anti-diversity, equity and inclusion environment, LBGTQ+ small business owners have remained resilient — and are actually starting businesses in record numbers.

Some 10% of entrepreneurs who started their own businesses last year identified as LGBTQ — a “milestone” and a 50% increase from 2023, according to a recent survey from small business software company Gusto. That brings the LGBTQ entrepreneurship representation in line with the general population, the company said.

“For too long, LGBTQ entrepreneurs have faced barriers to capital, visibility, and opportunity,” Nich Tremper, Gusto's senior economist, said in an email. “Reaching parity in business creation shows that more LGBTQ people are not only stepping into entrepreneurship, but doing so on their own terms — building companies rooted in care, autonomy, and community.”

About a third of LGBTQ entrepreneurs said they started a business so they can be a positive influence on their community.

For 38-year-old Lissete Briggs, who goes by Liz Whalen, opening up her hair salon Rebel Rebel in Libertyville, Illinois, was a way to give a safe space to her clients. She started her business with former co-worker Ashley Levin in 2020 after working in the industry for several years. The salon they worked for at the time was very conservative, Whalen said.

“I have a lot of gender queer, non-binary and trans clients, and they definitely did not feel comfortable there, so it was not a good fit for me,” she explained. “We wanted a more inclusive space.”

Whalen isn't feeling any of the effects of the backlash against DEI and only feels support from her clients and her community, including a local LGBTQ+ center.

“They support us. We support them,” Whalen said. “It's really a beautiful thing to see everybody kind of come together and support our little business.”

Economic impact of $1.7 trillion

Jonathan Lovitz, senior vice president of campaigns and communications at the Human Rights Campaign, said that is emblemantic of the community across the board in the face of any anti-DEI efforts or cuts to small business funding.

President Donald Trump has signed executive orders targeting DEI programs in both business and the public sector. The administration has also proposed cuts to the Small Business Administration.

“LGBT business owners are extraordinarily resilient,” Lovitz said.

The average American small business goes under around the five-year mark, but those that are certified LBGTQ+ are, on average, 12 years or older, he noted.

“They're already good at sticking it out through the tough times,” Lovitz added. “The pendulum swings back and forth on government and corporate support, but these companies are thriving because they're great companies.”

In fact, LBGTQ-owned businesses contribute $1.7 trillion to the United States economy, according to the National LGBT Chamber of Commerce.

Being your own boss

Danielle Stinger, who owns Dandi Cleaning & Organizing in Atlanta, is one of those businesses. Stinger, who is 37 years old and also considers herself pansexual, started her business in 2022, after doing it as a side hustle for years.

“In the political environment that we are in, especially with the last election, ... I have lost clients because of my choice in the LGBT community and good riddance,” said Stringer, who is currently in a relationship with a man after an 8-year relationship with a woman.

However, she's also found a lot of support.

“The great thing about being your own business owner is that you're allowed to choose — you get to choose who you work with and who you don't work with,” she said.

Gusto's Tremper said that is a benefit that many in the community likely crave.

“LGBTQ founders were 30% more likely than non-LGBTQ founders to say that they started their business in order to be their own boss,” he said. “This could signal a desire for more autonomy, but for traditionally marginalized groups it's also possible that they're starting a business to avoid discrimination — either overt or more subtle — in the traditional workplace.”

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