LGBTQ Founders Reach Parity: Business Ownership Reflects U.S. Demographics

In 2024, LGBTQ founders made up 10% of all new business owners, 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.

Key findings

• One in ten entrepreneurs who started their businesses in 2024 identified as LGBTQ. That share marks a 50% increase from 2023 and brings LGBTQ representation in entrepreneurship in line with the general population.
• Most LGBTQ entrepreneurs are Millennials or Gen Z. 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 likely 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.

LGBTQ entrepreneurs made up 10% of new small business owners in 2024

Ten percent of all new entrepreneurs last year identified as LGBTQ, an increase of 50% over the prior year. This rise mirrors broader demographic shifts, with the share of adults identifying as LGBTQ growing from 7.6% of adults in 2023 to 9.3% in 2024.

For the first time, LGBTQ representation among new entrepreneurs matches their share of the general population. 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.

Millennial and Gen Z entrepreneurs are 40% more likely to identify as LGBTQ as Gen X in 2024

More than one in ten Gen Z and Millennial new entrepreneurs identified as LGBTQ in 2024, representing 70% of all new LGBTQ entrepreneurs. This is compared to 8.1% of new Gen X entrepreneurs identifying as LGBTQ. Younger generations are more likely to identify as LGBTQ than older ones. As more Gen Z adults enter the workforce and start businesses, we’re likely to continue seeing LGBTQ representation among entrepreneurs rise.

LGBTQ entrepreneurs are building businesses in community, personal, and professional services

Over one-third of LGBTQ-owned businesses started in 2024 were in the professional services industry, and more than half were in community or personal services, including sectors like health care, accommodation, and retail.

These are industries rooted in connection, service, and community, and LGBTQ entrepreneurs are drawn to them. 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.

LGBTQ entrepreneurs are driven by career autonomy and community impact

More than 60% of LGBTQ entrepreneurs who started their business last year said that they did so to be their own boss, compared to less than half of non-LGTBQ new entrepreneurs. This highlights career autonomy and self-direction as powerful drivers of entrepreneurship among LGBTQ new business owners.

LGBTQ entrepreneurs were 30% more likely than non-LGBTQ entrepreneurs to say they started their business to have a positive impact on their community. For one-third of them, that reason ranked among their top three motivations for starting a business.

New LGBTQ business owners were 30% more likely to offer benefits in 2024

LGBTQ entrepreneurs didn’t just want to have a positive impact through their business. They also displayed this value to their employees. New LGBTQ employers were 30% more likely to offer benefits than their non-LGBTQ peers in 2024, with 95% offering benefits compared to 74%.

Among those that offer benefits, new LGBTQ business owners were 79% more likely to offer health insurance and 30% more likely to offer retirement benefits than new non-LGBTQ business owners. These patterns persist even after accounting for industry differences. For example, more than one-third of LGBTQ-owned businesses were in professional services, and more than one-quarter were in community services. In those sectors, only 71% and 55% of new employer businesses offered health insurance. The consistency of benefit offerings suggests that LGBTQ founders place a strong value on employee support and benefits as a part of compensation.

Conclusion

LGBTQ entrepreneurs are starting businesses with a clear sense of purpose. Their decisions around industry, motivation, and employee support reflect commitments to autonomy, equity, and community. Their growing presence in entrepreneurship is a sign that more people see business ownership as a viable and inclusive path.