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Ten percent of all new business owners in 2024 identified as LGBTQ+, according to a new report from Gusto, marking a 50 percent increase from 2023.
LGBTQ+ business owners are more likely to offer their employees benefits such as health care and retirement, a new study found.
There are more LGBTQ+ new business owners than ever recorded — and they're treating their employees better than others.
Ten percent of all new business owners in 2024 identified as LGBTQ+, according to a new report from Gusto, marking a 50 percent increase from 2023. This is in line with demographic shifts, the study notes, as about 9.3 percent of U.S. adults said in a Gallup survey last year that they identify as something other than heterosexual, up from 7.6 percent from the previous year.
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," the Gusto study states.
The new business owners were also more likely to be younger, as Gen Z and Millennials accounted for 70 percent of all new LGBTQ+ entrepreneurs in 2024. This is also in line with data that shows younger generations are much more likely to be LGBTQ+ than the generations before them — 28 percent of Gen Z adults identify as LGBTQ+, compared to 16 percent of millennials, seven percent of Gen X, and four percent of baby boomers, according to the Public Religion Research Institute.
New LGBTQ+ entrepreneurs were 56 percent more likely than their non-LGBTQ+ peers to start a business in order to make a positive impact on their community. Over one-third of businesses started by LGBTQ+ people in 2024 were in the professional services industry, and more than half were in community or personal services, including health care, accommodation, and retail.
New LGBTQ employers were also 30 percent more likely to offer benefits than their non-LGBTQ+ peers, with 95 percent offering benefits compared to 74 percent. Among those that offer benefits, new LGBTQ+ business owners were 79 percent more likely to offer health insurance and 30 percent more likely to offer retirement benefits.
"LGBTQ entrepreneurs are starting businesses with a clear sense of purpose," the report concludes. "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."
