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LGBTQ+ people are significant contributors to many local economies. Photo by Photo Italia LLC.
Every June, communities celebrate Pride Month with parades, flags, colorful window decals, community events, and rainbows in business storefronts. But progress happens beyond the frame of celebration. Pride is a great time to recognize the LGBTQ+ community members and business owners who are already part of our communities, but it is also a time to reflect on who is being included in our economic ecosystem, who is being left out, and what that means for long-term growth.
Working in Main Street, you start to notice who shows up — who opens businesses, who is being asked to serve on boards or steering committees, who gets invited to the table, and who does not. What we have seen over the past few years is that the LGBTQ+ population is absolutely part of our local economies. They are creating jobs, spending money, leading initiatives, and building lives in our districts. But the ecosystems that support entrepreneurs, workers, and consumers are not always designed with LGBTQ+ inclusion in mind.
That disconnect has real implications for the health and competitiveness of our Main Streets and our broader local economies. Main Streets need to understand this disconnect and the ways they can foster more inclusive local economies.
The Economic Impact Is Already Here
The LGBTQ+ sector is not a new or emerging market. They are a present and powerful one. Recent estimates indicate that LGBTQ+ adults contribute approximately $1.7 trillion to the U.S. economy each year. Their annual buying power is currently around $1.4 trillion, which is comparable to the GDP of countries like Spain or Australia. These numbers reflect actual, measurable contributions across retail, services, real estate, finance, and other sectors.
Consumer behavior data adds even more weight to the picture. LGBTQ+ shoppers make 10% more store visits annually than their non-LGBTQ+ counterparts and spend 7% more per trip. More than 70% say they are willing to pay a premium for goods and services from businesses that support the LGBTQ+ community.
These figures are not only large, but also growing. As of 2024, 23% of Gen Z and more than 10% of Millennials identify as LGBTQ+. That is a generational trend that will continue to reshape the economic landscape. They are future leaders, business owners, volunteers, residents, employees, and board members. Communities that embrace this demographic shift will be better positioned for future relevance, both socially and economically.
Pride month is a great time to reflect on the ways your organization engages with and supports the LGBTQ+ community. Photo by Jessica Brauer.
LGBTQ+ Business Owners Are Doing More With Less
LGBTQ+ entrepreneurs are opening businesses at a rate higher than the general population, but they are often doing it without access to the same support structures. The National LGBT Chamber of Commerce (NGLCC) estimates there are over 1.4 million LGBTQ-owned businesses in the United States, supporting more than 33,000 jobs. That number only includes those formally certified through NGLCC, meaning the actual total is likely much higher. Thirty-seven percent of LGBTQ+ entrepreneurs say they are not out to investors or their broader communities, often out of concern that it could affect their funding or client relationships.
Despite their impact, these business owners face unique challenges. The funding gap is especially stark. LGBTQ+ founders receive only 0.5% of the total $2.1 trillion in U.S. startup capital, according to a report from StartOut. This is despite evidence that LGBTQ+ startups often outperform their peers. On average, they create 36% more jobs, file 114% more patents, and achieve 44% more successful exits than other founders.
Some LGBTQ+ business owners report being directly denied funding due to bias. In one study, 33% of those who were turned down reported that the reason given was that their business was not the type of business the lender wanted to support. The outcome is a market that is doing more with less, and that speaks to a missed opportunity for lenders, investors, and economic development programs alike.
Workplace Inclusion Still Has a Long Way to Go
LGBTQ+ workers also continue to experience barriers in the economy. According to the Williams Institute at UCLA, nearly half of LGBTQ+ employees are not out to their supervisors. Twenty-one percent are not out at work at all. Among those who are, 39% report experiencing discrimination, compared to 12% of those who are not out. These experiences range from being passed over for promotions to enduring hostile work environments.
One in three LGBTQ+ employees has left a job because of how they were treated. More than 70% have heard slurs, jokes, or negative comments about LGBTQ+ people at work. Such environments are not only harmful to individuals. They affect productivity, morale, and retention. For local economies that rely on small business employment and a stable workforce, that is not sustainable. Communities lose out on talent, leadership, institutional knowledge, and ultimately experience population decline.
Creating a supportive environment for LGBTQ+ people can help attract entrepreneurs and business owners. Photo by Charlene Sharp.
The Policy Climate Shapes Economic Outcomes
Policy does not exist in a vacuum. It shapes how people experience place. The increasing number of anti-LGBTQ+ legislation has a direct impact on where LGBTQ+ individuals decide to start businesses, relocate for employment opportunities, or invest in their local community.
Communities that have chosen to improve their policy environments have seen measurable progress. The Municipal Equality Index (MEI) is a tool used to assess the inclusivity of a city or town’s laws and policies. It evaluates areas like non-discrimination ordinances, municipal services, law enforcement, and leadership inclusion.
A powerful example of the MEI in action comes from Laramie, Wyoming, the site of one of the most tragic and widely known hate crimes against a member of the LGBTQ+ community, Matthew Shepard. In the 27 years since, Laramie has taken meaningful steps to confront its past and commit to a more inclusive future. In 2016, the city scored just 48 on the Municipal Equality Index. By 2024, that score had risen to 92, including a perfect 100% in both Non-Discrimination Laws and Law Enforcement practices. Laramie’s journey demonstrates how communities can evolve and lead with intention, even when beginning from a place of pain.
What Main Streets Can Do
Main Streets have always played a role in shaping what economic participation looks like at the local level. Whether you are coordinating a façade improvement program, recruiting new businesses, or organizing events, you are making decisions that affect who feels welcome and supported.
Support for LGBTQ-owned businesses can take many forms. Creating directories, promoting grant opportunities, or simply featuring these businesses on your platforms helps normalize their presence and grow their reach. These efforts do not need to be large-scale to be meaningful. They just need to be consistent.
Partnerships are a crucial starting point. Collaborating with local LGBTQ+ organizations, chambers, or networks ensures that your work is informed by real needs. These groups often have resources, contacts, and lived expertise that can help your program build smarter and more effectively.
Visibility is key. Encouraging local businesses to adopt inclusive practices, display signage, and engage in LGBTQ+ training can shift the tone of a district. It signals that all customers and employees are welcome, and that matters for both culture and revenue.
Collect and track the data that supports long-term inclusion. Are LGBTQ+ businesses represented in your outreach? Do you know how many are located in your district? Are there LGBTQ+ residents serving on your board or involved in your programming? If not, think about what barriers might be in the way, or better yet, ask.
Pride Month is a time for celebration, but it also serves as a checkpoint. LGBTQ+ people are already making significant contributions to the economy. The question is whether the systems around them are keeping up.
Inclusion is not extra. It is essential. When we build ecosystems that reflect the full diversity of our communities, everyone benefits.
Downtown Decorations, a Main Street America Allied Member, is this quarter’s Main Spotlight advertiser. For more information about what they do to support Main Street organizations, click here.
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Silver City, NM © Silver City MainStreet
Community Spotlight: Skowhegan Center for Entrepreneurship
Main Street Skowhegan opened their new Skowhegan Center for Entrepreneurship, a downtown space for co-working, meeting, entrepreneurial support, trainings, and education.
Skowhegan, ME © Kristina Cannon
Main Spotlight: The Revitalizing Small and Local Businesses Act
Main Street America is proud to support the Revitalizing Small and Local Businesses Act
Main Spotlight: Findings from the Winter 2022 Small Business Survey
Main Street America's research team shares the results of the 2022 Small Business Survey.
© JENNIFER E. WOLF
Community Spotlight: Encouraging Entrepreneurship in Wheeling, West Virginia, and Emporia, Kansas
Learn about Show of Hands, an entrepreneurial program in multiple Main Street communities.
Wheeling, WV © Wheeling Heritage
Main Spotlight: 10 Predictions for 2022
Chief Program Officer Matt Wagner, Ph.D., shares his predictions for the trends affecting small businesses in 2022.
Tips and Tricks to Help Make Your Small Business Saturday a Success in 2021
Is your Main Street ready for the biggest small business shopping day of the year?
Community Spotlight: ‘WonderFall’ Business Decorating Contest Shines Autumnal Spotlight on Local Businesses
Main Street Charles City organizes their annual 'WonderFall' event, a business decorating contest designed to have some fun with the autumnal season as well as provide a reminder of the importance of curb appeal in attracting the public’s attention.
Charles City, IA © Mark Wicks
Main Spotlight: Better Community Planning & Economic Development Series with Ed McMahon
Leverage NC, a partnership between North Carolina Main Street and the North Carolina League of Municipalities, hosted a four-part webinar series titled Better Community Planning & Economic Development led by Ed McMahon, Chair Emeritus of Main Street America and a leading national authority on land use policy and economic development.
Community Spotlight: Main Street Arkansas Coffee Trail Celebrates the Importance of Coffee Shops Downtown
Main Street Arkansas has brewed a new engaging way for tourists and residents alike to explore local Arkansas commercial districts: the Main Street Arkansas Coffee Trail.
Little Rock, AR © Main Street Arkansas
Main Spotlight: Beyond COVID — Workforce as the Next Big Challenge for Main Streets
Matt Wagner explores how Main Streets can navigate workforce concerns in the post-pandemic economy.
National Black Business Month Spotlight: The Four Way and L. May Creations
We spoke with two Black entrepreneurs in UrbanMain commercial districts: L. May Creations in the Austin neighborhood of Chicago and The Four Way in south Memphis, Tennessee.
Memphis, TN © Four Way
Main Spotlight: Supporting Black-Owned Businesses in Biddeford, Maine
Heart of Biddeford shares the strategies they developed to support Black-owned businesses in their community.
Biddeford, ME © Heart of Biddeford
Community Spotlight: Main Streets Love Farmers Markets
We heard from organizations across the nation about the incredible impact their markets have had on community engagement, entrepreneur and small business support, and keeping their district vibrant.
Main Street: A Place for a More Connected Economy in a World of Dispersion
The global pandemic gave us all a glimpse of a further dispersed future – a time when you don’t sit in a classroom at school, watch movies in a theater, or even go to the grocery store. Where do Main Streets fit in that model?
Main Spotlight: Get Used to It — The Pivot Is Not Going Away
The COVID-19 pandemic has long-lasting effects on the economy. Here are 11 changes that small business owners should continue to remain competitive.
Reflecting on the History, Legacy, and Future of Black Wall Street in Tulsa
This May marked the 100th anniversary of the Tulsa Race Massacre in the Greenwood neighborhood of Tulsa, Oklahoma. We explored the impact and legacy of this tragic event.
Tulsa, OK © Dr. Tiffany Crutcher
Main Spotlight: Creating a Community for Inclusive Entrepreneurship in Fremont, CA
Learn about the various programs and initiatives that Fremont is using to promote inclusive economic development.
Fremont, CA © Fremont Economic Development
For an Inclusive Recovery, We Need Support for Small Business and the Groups that Help Them
BDOs are place-based organizations that help small businesses and entrepreneurs to flourish. They have been on the frontline of support for the country’s hardest-hit entrepreneurs throughout the pandemic and have been working to enable thriving commercial corridors throughout the crisis.
Main Spotlight: Five Takeaways on Supporting Entrepreneurship from Matthew Wagner, Ph.D.
Matthew Wagner, Ph.D., Chief Program Officer at Main Street America, was featured on Breaking Down Barriers: a podcast from Startup Space highlighting stories of community leaders who break down barriers to entry for underserved and unrepresented entrepreneurs.
Main Spotlight: Windows of Opportunity — The Transformation of Empty Storefronts on Main Street
A vacant storefront is the perfect stage to creatively promote the available space or to showcase other businesses and events in the area.
Ripon, WI © RetailWorks, Inc
Small Businesses E‑Commerce Usage Continues to Increase as Holiday Revenues Were Mixed: Results from Our January 2021 Survey of Small Business Owners
We heard from 289 business owners in 35 states plus the District of Columbia in our new text message-based survey of small business owners across the network.
Community Spotlight: Paving the Path from Pop-up to Permanent at the Batavia Boardwalk Shops
The Batavia Boardwalk Shops are freestanding, purpose-built structures acting as seasonal pop-up locations for entrepreneurs, offered in tandem with a business incubator program.
Batavia, IL © April Duda Photography
Business Spotlight: Black Entrepreneurs Leading By Example in Chicago
For Black History Month, we want to recognize and celebrate the Black business owners and entrepreneurs who have overcome challenges and obstacles in launching and running their own businesses, thanks to resilience, creativity, and hard work.
Main Spotlight: Pop-Up Retail: Not Just For Start-Ups, And Other Learnings From Its Evolution
As a vital place factor within an entrepreneurship ecosystem, pop-up programs allow for emerging businesses to test their product, gain consumer feedback, and promote their brand at an extremely low cost. In essence, allowing for a ‘fail-fast’ product development cycle.
Asheville, NC © Ablohkin
Coping with the COVID Crisis in the Midst of the Holiday Rush: Nine Takeaways from Our December Surveys of Small Business Owners and Main Street Programs
In early December, as the COVID-19 crisis intersected with a peak moment in the holiday shopping season, we surveyed small business owners and Main Street programs to learn more about how they were managing.
© Cindy Shebley
Jump off the Business Recruitment Train: The Real Returns are in Cultivating Local Entrepreneurship
New research by Main Street America suggests greater returns on our missions and resources can be had by transitioning to more deliberate economic vitality work centered on cultivating new business development from within our own communities and neighborhoods.
Community Spotlight: Storefront Activation Through Storytelling in Fredericksburg, VA
Fredericksburg Virginia Main Street (FVMS) is taking storefront activation to a new level with their new initiative, the Scan & Love Project, which tells the stories of business owners through personal and engaging videos.
HartBeat of Main Street Grant Program: Spotlighting Tina’s Timeless Threads
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Center of the Yarniverse
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting The Bankery
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting BuzzBomb Brewing
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting The Owl Wine Bar & Home Goods
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting Griff Goods
Meet a recipient of the HartBeat of Main Street Grant Program
HartBeat of Main Street Grant Program: Spotlighting Mockingbird Bar and Tacos
Meet a recipient of the HartBeat of Main Street Grant Program
Economic Gardening Takes Root: Redesigning the Bricks & Clicks Business Retention Program During the Pandemic
Harrisonburg Downtown Renaissance explores how they redesigned their Bricks & Clicks Business Retention Program during the pandemic.
Business Spotlight: Women-Owned Businesses on Main Street (Part 3)
Meet some amazing women business owners!
New Survey Results: How Small Businesses are Managing the Pandemic and Social Unrest
Read the results of our survey aimed at understanding how business owners are managing the recovery from COVID-19 and responding to recent protests and social unrest related to police violence against Black Americans.
Research Spotlight: Black-Owned Businesses on Main Street and Beyond
Our research team dug into some of the data about the state of Black-owned businesses on Main Street, the structural challenges they face, and how Main Streets can support them.
Main Spotlight: Holiday Shopping During COVID: What Should Main Streets Expect?
Matt Wagner explores how the pandemic may affect the shop small holiday weekend.
Main Spotlight: How Rural Economies Can Leverage the Rise in Remote Work
COVID-19 has led to a rise in remote working. How can small and rural towns leverage this shift to create vibrant local economies?
The Impact of COVID-19 on Small Businesses: Follow-up Survey Report
Detailed findings from our follow-up survey on the impacts of COVID-19 on small businesses to better understand the continued challenges businesses face as the crisis evolves.
Main Spotlight: Recovery and Revitalization Depend on Understanding Human Psyche
How does psychology impact the recovery of our downtowns after the COVID-19 pandemic?
Local Impact: Small Business Saturday
Small Business Saturday® is more than a day to shop. It’s a nationwide movement that shines a spotlight on the importance of supporting small businesses in communities across America.
Community Spotlight: Benson, North Carolina
The Town of Benson started a special project to highlight their downtown businesses.
Community Spotlight: Berkley, Michigan
The Berkley Downtown Development Authority (DDA) proudly debuted its Downtown Berkley Shopping Bag for a Cause through a partnership between Better Life Bags.
Main Spotlight: Learnings from the ESHIP Summit
Supporting new and existing small businesses, and the entrepreneurs who run them, represents a vital aspect of the revitalization of downtowns and neighborhood business districts.
Creating Equitable, Inclusive and Transparent Cities: A Year in Review
The Equitable Economic Development Fellowship is a two-year, one million-dollar effort funded by the Surdna Foundation and the Open Society Foundations to help equity, transparency, sustainability and community engagement become driving forces in local economic development efforts.
Community Spotlight: Mini-Grants Offered to Small Businesses in Jefferson, Iowa
The Jefferson Rotary Club partnered with Jefferson Matters: Main Street to offer mini-grants for building facades and storefront signage to two dozen businesses for up to $500 each.
A Memorable Makeover on Main Street
The Wisconsin Economic Development Corporation (WEDC) partnered with Retailworks, Inc., a commercial interior design, display and branding firm headquartered in Milwaukee, to launch Wisconsin’s Main Street Makeover Contest.
Creative Discovery on the Maker Trail in Enid, Oklahoma
Kelly Tompkins of Main Street Enid shares more about the Maker Trail project and how it inspired creativity and helped people discover downtown.
City Sidewalks, Dressed in Holiday Style
Too often, as we’re strolling our favorite Main Street, we pass empty or dark shop windows that make us want to hurry home a little bit faster. Imagine instead, a charming streetscape adorned with vibrant, lively window displays, showcasing retailers’ favorite products and seasonal gift ideas.
Community Spotlight: #ShopSmall in Goldsboro, North Carolina
Small Business Saturday promo pic from Downtown Goldsboro, North Carolina, showing all the folks who took the pledge support a small business in their community.
Using Local Search Trends to Attract More Customers to Your Main Street
We’ve put together a practical list of some of the things that local store owners can do right now to help them capitalize on this increasing trend in local searches.
Network Spotlight: Main Street Iowa Restaurant Week
From authentic comfort food to farm-to-fork fresh and everything in between, these restaurants, bars, and cafes are key to the thriving social, business, and residential life in the historic commercial districts in Main Street Iowa communities.
Fab Lab Sparks Rural Opportunities
Located in southeast Kansas, Independence (pop.8,799) is home to Fab Lab ICC, which is on track to be the world’s leading innovator in combining entrepreneurial mindset education with a fab lab maker space.
Community Spotlight: Morganton, North Carolina
The craft beer industry is playing a key role in the rebirth of Main Streets and neighborhood commercial districts across the county.
Rethink Storefront Accessibility to Rethink Community Viability
Appealing to mobility-challenged shoppers yields benefits beyond the store.
Sparking a Movement in Small Business and Small Towns
Being the only person in the know can be fun, exhilarating even. Except when you are the one person out of 600+ in a room and you know bad news is coming.
The Lowdown in Downtown LaBelle
Fritz the dog has made his way into the hearts of the residents of LaBelle, Florida, and helped our Main Street Community find a way to make what we do more noticeable.
Pop-Up Altavista 2.0
Altavista On Track, the local Main Street organization, is working to cultivate and sustain local entrepreneurs with an educational business launch competition, Pop-Up Altavista 2.0.
The Bright Center: A Space for Winchester’s Bright Minds to Create, Innovate and Thrive
In Winchester, Virginia, one woman’s vision and commitment to downtown’s revitalization created an innovative community space for the Creative Class.
Why Business Retention and Expansion Plans are Important for Downtowns
A business retention and expansion plan, properly implemented, not only helps keep businesses open but possibly even helps them expand.
Business Investment Guides: “Think B.I.G.”
The first rule of conducting business is “make it simple.” The easier it is to pay for merchandise, get entertainment or obtain a service, the more likely it is that people will take advantage of those options.
Small Box – A Creative Retail Project
Main Street communities across the country are no stranger to seeking creative strategies to solve their most nagging issues – vacant buildings, marketing downtown, bolstering retail to name a few.
Supporting Immigrant Entrepreneurs in the Heart of Boston’s Main Streets
To understand the role that immigrant business owners play in Boston’s small business ecosystem, you need only to walk through any Boston Main Streets district.
Measuring the Economic Impact of Storefront Improvements
Façade appearance is a critical aspect of the overall aesthetic appeal and unique character of downtown.
Sign Design Guidelines
A lot of signs are necessary to make a downtown work well, but not every community knows what a good sign system looks like, or how instrumental it can be to the creation of a successful downtown.
Improving Performance in Main Street Iowa Communities
Main Street Iowa, a program of the Iowa Economic Development Authority’s Iowa Downtown Resource Center, created a one-of-a-kind three-year program to provide help for performance venues located in Main Street districts.
