Disabled entrepreneurs represent 25% of the UK's small businesses, but despite their resilience, research shows they face significant barriers, especially when it comes to getting funding.
A new government-backed study, The Lilac Review, carried out by academics at ARU Peterborough and Small Business Britain with support from Lloyds, is calling for "bold and urgent action" to empower millions of disabled entrepreneurs across the UK to help combat inequality and drive business revenue growth.
After two years of research, The Lilac Review has concluded that significant financial, operational and accessibility barriers are holding back the nation's disabled-led businesses. Disabled entrepreneurs represent 25% of the UK's 5.45 million small businesses, but just 8.6% of business turnover.
The Lilac Review has 20 recommendations for central and local government, financial institutions and business support organisations to build a more inclusive economy. It estimates that removing obstacles for disabled business owners could unlock £230 billion in additional UK business revenue.
Financial barriers for disabled entrepreneurs
A survey of 750 disabled entrepreneurs in the UK revealed that:
- 44% are keen to expand their business;
- 73% want to boost revenues;
- 57% identified financial support as their critical need for the coming year.
Key challenges include: the ongoing costs of managing a disability, fear of losing essential benefits and potential future gaps in productivity due to health conditions. Disabled people, on average, face an additional £1,010 a month in costs due to what Scope calls the Disability Price Tag, before business costs.
Earlier research from Access2Funding has found that disabled founders are 400 times less likely to secure investment than non-disabled counterparts. Often, disabled founders are excluded not just because of bias or assumptions, but due to inaccessible pitch processes, unclear eligibility criteria or inflexible application formats.
A key recommendation from the review is to enhance the reach and impact of the new Disability Finance Code, in partnership with UK Finance, the British Business Bank and investors. Launched last December to bring down barriers to accessing finance and financial support, the initiative has the backing of Barclays, HSBC UK, Lloyds and NatWest.
DEI "roll-back" fears
Further research by Small Business Britain for The Lilac Review has revealed deep concerns about the future accessibility of business support efforts, particularly Diversity, Equity, and Inclusion (DEI) initiatives. Two-thirds (67%) of those polled expressed worry that heightened international scrutiny of DEI could negatively impact UK businesses, with half fearing a personal impact.
"Disabled entrepreneurs are innovative, impactful and growing. Yet we remain under-represented, underfunded and underestimated. The Lilac Review is a bold and necessary step toward recognising the unique challenges that disabled entrepreneurs face - and more importantly, toward removing them. The findings of this report are clear: change is needed - not later, but now. That means inclusive finance, accessible business support, and communities that empower rather than exclude." Victoria Jenkins, co-chair of The Lilac Review and founder of Unhidden.
The Lilac Centre for Disabled Entrepreneurship
The Lilac Review has also announced the launch of The Lilac Centre for Disabled Entrepreneurship - the UK's first business incubator and research centre dedicated to advancing the success of disabled entrepreneurs. With a hybrid physical and virtual model, hosted at ARU Peterborough and Small Business Britain, the centre will champion innovation, leadership and inclusive enterprise.
Written by Rachel Miller.