Happy Pride Month! There are many things to celebrate this month, including this—25 years after Pride Month was officially established, LGBTQ business founders have “reached parity,” according to new research from Gusto.
The study shows that LGBTQ founders made up 10% of all new business owners in 2024, “a milestone that mirrors broader shifts in identity across the population. This group isn’t just starting businesses; they’re building companies rooted in care, autonomy, and community.”
Nich Tremper, a senior economist at Gusto who conducted the research, pointed out some key findings:
- About 10% of entrepreneurs who started their businesses in 2024 identified as LGBTQ—up 50% from 2023, bringing LGBTQ representation in entrepreneurship in line with that of the general population. According to the study, this suggests that more LGBTQ people are seeing fewer barriers to entrepreneurship and are choosing it as an accessible and viable path to make a living.
- Most LGBTQ entrepreneurs are millennials and Gen Z. Millennial and Gen Z entrepreneurs are 40% more likely to identify as LGBTQ than Gen X in 2024. Younger generations are more likely to identify as LGBTQ, and Gen Z continues to mature into the workforce and start their own businesses, representation is expected to grow.
- LGBTQ-owned businesses are more likely to offer employee benefits. Compared to new employer businesses with non-LGBTQ owners, new LGBTQ employers were more likely to provide health care and retirement benefits, even after accounting for industry differences. In fact, 95% of new LGBTQ employers offered benefits compared to 74% of new non-LGBTQ employers.
Entrepreneurial Inspiration
Over one-third of LGBTQ-owned businesses started last year were in the professional services industry, and more than half were in community or personal services, including sectors such as healthcare, accommodation, and retail.
LGBTQ entrepreneurs are building businesses in community, personal, and professional services. That’s not surprising since Gusto’s research shows that new LGBTQ entrepreneurs were 56% more likely than their non-LGBTQ peers to say they started a business to make a positive impact on their community. “That difference (62% compared to 40%, respectively) helps explain why so many LGBTQ-owned businesses are in industries that center on care and community.”
Follow-up: I’m going to post this every week until the situation is resolved, because I’m still “mad as hell.” And I’m still asking you to #StandWithSCORE.
SCORE is too valuable to be cut from the federal budget. The budget is in the hands of the Senate right now, so please contact your senators ASAP. You can get in touch often.
Tell them to stop talking about how “important small businesses are to our national economy” and do something about saving an organization that helps millions of small business owners every year.
If you think it’s not worth funding an organization that helps fuel the nation’s economy by guiding people through starting and growing a small business, you’re wrong. Small businesses create jobs, which in turn provide people with income that they spend in their communities. It’s the way you grow the economy—from the ground up.
Or just fill out this form (it takes less than 2 minutes), which will be sent to your congressional representative’s offices. And message Congress on social media. Tell them to save the people who save small businesses. Include @scorementors in your post. And the hashtag #StandwithSCORE.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Molly the Cat for Unsplash+