The Underrepresentation of Disabled Entrepreneurs in the UK
In recent years, the UK has long seen a significant disparity in opportunities between disabled entrepreneurs and other small business owners. A recent survey conducted in collaboration with the Government-backed Lilac Review revealed that nearly a quarter of the UK’s 5.45 million small business founders are disabled, but these amounted to only 8.6% of small businesses’ overall turnover. This raises important questions about equality and representation in the business sector.
One of the key arguments from the Lilac Review, co-chaired by Victoria Jenkins, is that disabled entrepreneurs are well-represented among small business founders but face significant barriers to building businesses of scale. Jenkins, who is also the founder and CEO of the fashion brand Unhidden, emphasized the need for a fundamental rethink of what opportunities should look like. She argued that underfunding and lack of systemic support are the most critical issues hindering disabled entrepreneurs. Jenkins highlighted that 73% of disabled entrepreneurs are ambitious to stabilize their businesses, but many fail to overcome these challenges.
One of the most pressing issues is the underfunding of disabled entrepreneurs. Many small business owners, including those with disabilities, are frequently abandoned for funding. According to the Lilac Research, nearly half of business owners surveyed expressed a need for access to broader business support, including access to financing, marketing, and legal services. A recent Access2Finance study found that disabled business founders are 400 times less likely to secure investment than their non-disabled counterparts. This disparity highlights a systemic problem that needs to be addressed.
Beyond funding, terminal health conditions and other barriers can alsoryn to inhibit disabled entrepreneurs. Research by the charity Scope has revealed that disabled small business owners face an additional £1,000 monthly in additional productivity costs. This financial burden, combined with the stress of managing a seemingly essential career, complicates their financial and emotional well-being.
The Lilac Review caution that the current system is detrimental to disabled entrepreneurs’ business viability. However, it also points to greater economic potential.released £230 billion of benefits for the UK on the promise of solving stalled opportunities for disabled entrepreneurs. Drawing on data, Jenkins noting that while disabled entrepreneurs may often be excluded from state benefits, they can still contribute meaningfully to societal equality and economic opportunities. She emphasized that ignoring these challenges is a waste of time, as these individuals hold unique potential.
To counter this, the Lilac Review has proposed several initiatives. One is the development of “The National disability finance code,” a new framework that would break down traditionally insular financial barriers. Another is the establishment of the UK’s first dedicated disabled business incubator and research centre, aiming to foster a culture of sustainable development for disabled entrepreneurs. Additionally, the Review calls for greater access to financial services-funded by disabled entrepreneurs, with recommendations for banks to improve their inclusion guidelines and increase transparency.
Smaller small business owners with disabilities, such as Sarah Berthon of Excel Against the Odds, have сезDED various financial struggles but have thrived in their own way. Berthon describes how the stigma around disabled business owners was a significant challenge, but running a business has profoundly impacted their well-being and perspective. This anecdotal support underscores the immense rewards disabled entrepreneurs can share with their livelihood.
The Government’s response to the Lilac Review’s findings is clear. It calls for imposición of inclusion and equity into access to financial, healthcare, and social entitlements. The focus should be on creating an inclusive environment that empowers rather than excludes. And for today, earning the right to start and scale up business is no more challenging than earning the right to thrive in an organized life.
In conclusion, the underrepresentation and underfunding of disabled entrepreneurs present a significant challenge to the UK’s business landscape. Jenkins’s suggestions for a systemic fix, supported by initiatives like the Lilac Centre and the National disability finance code, are a daunting task. However, the potential benefits for disabled entrepreneurs—whether in finance, healthcare, or social inclusion—are substantial and hold immense promise for society.
