Why buying from LGBTQ+ led businesses makes a difference in London
As we celebrate Pride Month (June 2026), we explore why anchor institutions might want to consider making an extra effort to procure from LGBTQ+ led small and medium-sized enterprises (SMEs).
LAIN (the London Anchor Institutions’ Network) has been working with OutBritain, a Chamber of Commerce for LGBTQ+ businesses, to find out more about how procurement can make a difference.
Why do LGBTQ+ led businesses matter?
In 2026, 67 countries around the world criminalise same sex relationships. Last year half of LGBTQ workers here in the UK reported facing discrimination at work, and 1 out of 4 have faced verbal abuse from customers. Sadly, last year saw over 21,000 LGBTQ+ hate crimes reported in England and Wales.
There are positive societal changes when it comes to LGBTQ+ inclusion, with good representation from LGBTQ+ people in positions of power in politics, business, arts and entertainment. But on the whole, it is still challenging for people to be ‘Out’ at work in our current climate.
In this context, starting a business is a way for LGBTQ+ people to achieve greater personal and economic freedom, and create safe and authentic workspaces. If we want to make positive changes towards a more inclusive society, we not only need legislative and policy advocacy, but also economic empowerment and cultural visibility and inclusion.
Economic empowerment is where LGBTQ+ led businesses come in. When LGBTQ+ people are economically secure – able to sustain themselves and their families – mental health improves, dependency on public services reduces, community resilience grows, and the next generation sees a future worth working for. This also holds true for other under-represented groups, including women, ethnic minorities and disabled people.
The scale of opportunity
In 2024 OutBritain, together with Goldman Sachs, Accenture and Dow, published a report on the scale of LGBTQ+ led businesses in the UK, discovering over 250,000 across the country. OutBritain further disaggregated this data for LAIN to identify the scale of LGBTQ+ businesses in London. They found there are over 53,000 such businesses in London alone, employing over 160,000 people (57% of whom are estimated to be LGBTQ+ themselves). These businesses turn over £23billion in London a year.
Procuring more from these businesses - and other diverse-led SMEs - not only helps them to grow, but can also bring benefits to anchor institutions as buying organisations, including better value for money, service delivery, flexibility and innovation.
What has LAIN been doing
Backed by the Mayor of London, members of LAIN’s procurement workstream, including the NHS, Transport for London, London Fire Brigade, University of London and Metropolitan Police Service, have committed to increase spend with small and diverse-led London-based SMEs – an ambition echoed in the London Growth Plan.