3. LGBTQ-supportive companies see positive outcomes for employees.
In many cases, corporate employees benefit from policies and employee resource groups that protect LGBTQ individuals from workplace discrimination and provide a sense of formal inclusion. A 2013 study from the Williams Institute finds that LGBTQ employees at supportive companies experience less discrimination, better health, and higher job satisfaction and commitment.
Startups, however, often lack the scale at which intra-company LGBTQ groups can be formed. Early-stage companies may only have a handful of employees, of which one or two might identify as LGBTQ. LGBTQ entrepreneurs can build formal networks to mimic the sense of community gained from such groups in corporate spaces and benefit from a heightened sense of well-being at work and in the broader startup community.
4. LGBTQ innovation helps companies solve problems and tap into new markets.
In 2015, LGBTQ Americans had $917 billion in collective buying power, on par with that of other minority groups. Of course, LGBTQ entrepreneurs themselves are uniquely equipped to develop new products and services tailored to LGBTQ consumers.
LGBTQ employees at Facebook listened to fellow LGBTQ users and advocated for custom gender identities on profiles. Her, a lesbian dating app, was developed out of the founder’s own frustration with using versions of other apps geared toward heterosexuals and gay men. The Out in Tech Digital Corps helps provide web services for LGBTQ activists and organizations around the world. A quick search for “best LGBTQ products,” however, reveals few results and lots of room for growth. Together, we can identify and tap into opportunities in our own market more effectively.
Diversity in company leadership also drives innovation. Research published in the Harvard Business Review found that firms with a diverse set of leaders are 45% more likely to report market share growth and 70% more likely to have secured a new market altogether. However, 78% of firms lack a diverse set of leaders, and LGBT employees at these companies are 21% less likely to win endorsement for their ideas.
5. Future generations of LGBTQ people should see entrepreneurship as a viable path to success.
Adversity is only one side of the story. In contrast to some LGBTQ people with careers in traditional organizations – financial institutions, school districts, corporate law firms, retail companies, etc. – LGBTQ entrepreneurs may have an easier time carving out paths for themselves without daily dealings with prejudiced bosses or coworkers. LGBTQ people should embrace entrepreneurship as a way to escape the old boys clubs and create their own inclusive work environments.
That being said, challenges persist. Venture for America and Out in Tech believe that the best way to resolve these issues is to encourage more entrepreneurship in the LGBTQ community. After all, embarking on an entrepreneurial endeavor and coming out as LGBTQ are easier with role models to admire. A similar sense of familiarity with LGBTQ people is also important for our straight and cis-gendered colleagues. Together, we can inspire future generations to prioritize gender identity and sexual orientation as assets and never as liabilities.
