Over 1.4 million LGBTQ+-owned businesses are contributing up to $1.7 trillion to the US economy each year, according to data from the National LGBT Chamber of Commerce (NGLCC). June is recognized as Pride Month in the US and several other countries.
Public Private Strategies Founder and Principal Rhett Buttle emphasizes LGBTQ+ business as a critical portion of the United States’ “economic fabric,” saying this demographic of entrepreneurs are usually younger and focused on supporting other small businesses within their communities.
Buttle, who also served as President Biden’s National Business Advisor in his 2020 presidential campaign, lists some of the government agencies and resources LGBTQ+ businesses are taking advantage of:
“We’re seeing more and more states and local governments work with the LGBT community to help get LGBTQ businesses in their supply chains. It helps them make sure that they are really meeting the community where they’re at, as well as helps grows these businesses, so that’s really important part of it. I think another underutilized resource is the US Small Business Administration (SBA), which has really created a number of tools and programs to really meet business owners where they’re at. When you’re starting a business, sometimes it can be often confusing.”
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This post was written by Luke Carberry Mogan.
Video Transcript
According to the National Gay and Lesbian Chamber of Commerce, there are over 1.4 million LGBT Q business owners in the United States contributing approximately $1.7 trillion to the economy annually.
For more on the impact of LGBT Q plus businesses on the US economy, we’re joined by Rhett Bustle public private strategies, founder and principal Rhett served as the national business adviser in President Biden’s 2020 presidential campaign.
Thank you for taking the time to join us this morning.
So talk about how these businesses are faring this year and really the sorts of resources that have helped fuel this growth.
Well, happy Pride Month, as you know, this is a month where we celebrate contributions of LGBT Q Americans all across the country.
And one of the specific pieces that is so important that the story doesn’t get told very often is what a critical fabric they are to the small business and entrepreneurship economy.
So the American economy, as we all know is powered by small business, they’re the backbones of our communities.
Um And as you, as you heard, LGBT Q plus businesses are a huge part of that economic fabric.
Uh not only in the businesses that they start create and run the people they employ, but also the LGBT consumer is a massive consumer, obviously not just in June during pride month, but all throughout the year.
And looking at some of the data here, the LGBT Q community is spending uh more than $917 billion every year on goods and services.
Where does that money tend to flow to?
Well, look, a lot of LGBT Q consumers are focused, you know, uh like many consumers where they live focused on supporting the small business community.
Uh just like everyday Americans, they are a powerful force for the economy.
Many of them are investing in their local communities, buying goods and services for their family.
Uh But also uh a lot of, you know, very important specific industries, uh travel and tourism tends to be a huge part of where the LGBT community spends their dollars.
Um And like I said, uh you know, the LGBT, many folks in the LGBT plus community are very entrepreneurial and so seeing them start and grow their businesses is an important part of this economic impact and looking at the demographics here in terms of how young some of these business owners and entrepreneurs are walk us through that and, and what they’re really tapping into to grow their businesses and really also spend within the community as well.
Yeah, this is actually a trend we’re seeing with a lot of business owners, they really identify their identity really leads where they go to for tools, tips and resources.
And so, uh earlier in this segment, you quoted the National Gay and Lesbian Chamber of Commerce, the National LGBT Chamber, which is an amazing resource for LGBT business owners.
Um And they really provide the sort of community and support uh that small business owners we need in order to grow their businesses.
Uh We’ve seen a lot of really positive steps from the Biden Harris Administration for the first time, the US Small Business Administration has really celebrated in pride and provide tips and resources to LGBT Q plus business owners really honoring and recognizing the important contribution that they make to this economy.
Um And we see this actually across a lot of different trends.
So not only in the LGBT community but also in the African American Latino Hispanic community, folks are really dialing into the African American Chamber of Commerce, the Hispanic Chamber of Commerce.
And we’ve seen that growth with LGBT Chambers of Commerce across the country.
And there’s over 20 LGBT Chambers of Commerce at a state local and federal lover, really helping LGBT entrepreneurs do what they do best, which is grow jobs and give back to their community and sometimes the resources are there but, but people don’t necessarily use them.
So Rhett tell us about some of the programs and the efforts in place to help LGBT Q plus business owners grow their companies or ventures and perhaps some of the ones that are under under utilized that they should really be tapping into.
Yeah.
So I would start with talking about the National LGBT Chamber, which is an important part.
They can help businesses get certified so that you have that distinction that really unlocks new opportunities in corporate America.
They also serve as an important advocacy voice for business owners at a state local and federal level.
We’re seeing more and more states and local governments work with the LGBT community to help with LGBT Q businesses in their supply chains.
It helps them make sure that they are really meeting the community where they’re at as well, helps grow these business.
So that’s really important part of it.
I think another uh underutilized resource is the US Small Business Administration, which has really created a number of tools and programs to really meet business owners where they are when you’re starting a business.
Sometimes it can be often confusing.
Where do I start?
How do I get a loan?
How do I do my taxes?
There’s a lot of really good work going on at SB a.gov, where business owners, LGBT Q business owners, but really any business owner can go and help get some of their needs met.
And, and also looking at the data here, looking at the majority of LGBT Q plus small businesses more likely to be owned by women and also be immigrant owned as well, especially when you think of an election year.
So many topics on tap here, what should people be aware of when they think of the businesses and the demographics within them and how to support them?
Yeah, so LGBT Q plus businesses are a huge part of the economy.
Uh but women and we see this across all demographics.
Women, whether it be Latino women or African American women.
LGBT Q women are really starting to become more entrepreneurial.
A lot of that is because, you know, women are in many ways looking for more flexible work arrangements.
Um But they also tend to be amazing entrepreneurs and they see needs specific in the market.
Uh That is really, really important.
We see the same with immigrants who have come to this country.
Many of them are wanting to participate in the American dream.
Uh They see specific needs that we, that others might not see in the market and they go out and start in business.
Um And you know, starting a business is no small fee, it takes a lot of hustle.
And so it’s really impressive to see um all of these folks go out and really, you know, start these businesses which are such a critical backbone of the American economy.
Two out of every three Americans are actually employed by a small business.
And so keeping this job engine running and providing tools and resources to make sure it’s running well is an important thing that we all must be focused on.
Indeed.
And, and happy to have you on here to, to lay out some of those resources for us.
Rhett Buttle, public, private Strategies, founder and principal.
Thank you so much for joining me this morning.
Thank you.
Happy Pride Month.
