Disabled entrepreneurs are 400 times less likely to receive investment, a new report

• Aparna Sreevalsan
• 16 August, 2023

 

• Currently, disabled-owned businesses contribute almost 10 per cent of the UK’s GDP.

• Twenty five per cent of small businesses are disabled-owned.

• This proves a vast and untapped pool of highly competent business owners currently excluded from contributing even more to the economy.

DISABLED entrepreneurs are about 400 times more likely to face discrimination than their able-bodied counterparts when it comes to investment funding.

A new study reveals the gulf in treatment experienced by disabled and neurodiverse entrepreneurs in the UK and the subsequent impact on the UK economy.

Disability inclusion appears to be extremely low on the agenda for most Venture Capitalist (VC) firms, according to the report “Transforming Opportunities and Outcomes For Disabled Entrepreneurs,” which was officially launched last month at HSBC Innovation Banking’s offices in London.

The study was undertaken by the advocacy organisation Access2Funding in collaboration with organisations like Disability Policy Centre and Disability Rights UK.

Accessibility issues continue to be a significant barrier for individuals with disabilities, costing the economy £2 billion a month in lost profits.

Currently, disabled-owned businesses contribute almost 10 per cent of the UK’s GDP. Twenty five per cent of small businesses are disabled-owned.

This proves a vast and untapped pool of highly competent, driven and creative business owners currently excluded from contributing even more to the economy.

Using the initial findings, this missed opportunity is equal to approximately £500 million+ a year.

The results have highlighted the considerable obstacles and missed opportunities that have resulted in the underrepresentation of disabled entrepreneurs in the corporate world.

Joseph Williams, co-founder of Access2Funding said: “This clear funding inequity deprives disabled entrepreneurs of the essential resources required to grow their businesses and to innovate, leaving skills and talent underutilised.

“Despite contributing almost 10 per cent of the UK’s GDP, disabled entrepreneurs are disproportionately excluded from the investment conversation and support systems.

“Our current economic landscape is inherently inaccessible and not designed for us to thrive, hindering our ability to unleash our true potential. We hope this campaign acts as a large wake-up call to the untapped talent within the disabled community if we create more accessible and equitable funding systems.”

Over half a billion pounds in potential returns and untapped talent that may greatly contribute to economic growth and job creation across the UK have been lost due to this enormous financing gap.

The findings are based on the data of the 25 per cent of small businesses run by people with disabilities or neurodiverse individuals.

It also pointed out that 90 per cent of disabled entrepreneurs said they felt like they weren’t treated similarly to non-disabled business owners seeking financing.

*Access2Funding is a campaign formed to improve equitable investment in disabled-owned and disabled-led businesses.