LGBT-owned businesses in the Austin metro area wield a potential economic impact of $11.77 billion, according to a new estimate released by the Austin LGBT Chamber of Commerce in conjunction with Austin LGBT Business Month.
“LGBT-owned businesses in the Austin area are a growing, thriving economic force. These include consulting firms, restaurants, law firms, retail shops, real estate firms, bars and so many other businesses that help propel our region’s economy,” says Edgar Gierbolini, president and CEO of the Austin LGBT Chamber of Commerce.
To put the potential economic impact of $11.77 billion in easy-to-grasp terms, that figure is a little over the size of the economy of Macedonia, a country in southeast Europe.
This economic impact estimate relies on data obtained from the National LGBT Chamber of Commerce, the U.S. Census Bureau and the Gallup polling organization. (The full methodology for this estimate is explained below.)
To highlight the potential $11.77 billion economic impact of LGBT-owned businesses in the Austin area, the Austin LGBT Chamber of Commerce is observing the first-ever Austin LGBT Business Month in April.
Some of those LGBT-owned businesses are certified as LGBT Business Enterprises, or LGBTBEs. Achieving this certification enables an LGBT-owned business to form and sustain relationships with major companies, generate business prospects and collaborate with other certified businesses on contracting opportunities.
“A first-of-its-kind report released in 2017 found more than 7 percent of LGBT-certified businesses in the U.S. are in Texas, with some of them right here in Austin. Only California and New York have higher percentages of LGBT-certified businesses,” Gierbolini says. “This report proves that the power of the rainbow dollar in the Austin area and the rest of Texas is strong.”
To learn more about LGBT-certified businesses in the Austin area, visit www.austinlgbtchamber.com/supplier-diversity.
Chase Kincannon, board chair of the Austin LBGT Chamber of Commerce, says: “The size and strength of the LGBT business community in the Austin area is what prompted us to launch Austin LGBT Business Month. The economic influence of LGBT-owned businesses in the Austin area is one of the best-kept secrets in Central Texas. By promoting Austin LGBT Business Month, we’re letting the entire community in on our not-so-little secret.”
About the Austin LGBT Chamber of Commerce
The Austin LGBT Chamber of Commerce is Central Texas’ home for lesbian, gay, bisexual and transgender (LGBT) supportive businesses and organizations. The chamber is the best resource to learn about LGBT-friendly businesses, services, community resources and events in the Austin area.
For more information, visit www.austinlgbtchamber.com.
Economic impact methodology
To come up with the potential economic impact of LGBT-owned businesses in the five-county Austin metro area, the Austin LGBT Chamber of Commerce used the following formula.
1. The Austin area’s LGBT population is 112,139. That’s based on the area’s 2017 population of 2,115,827, as reported by the U.S. Census Bureau, and 2012-14 polling by Gallup that shows 5.3 percent of the region’s population identifies as LGBT.
2. Next, we calculated the number of LGBT small businesses (8.75 percent x 112,139). The estimated grand total: 9,812 businesses.
3. Then, we multiplied that figure (9,812) by the average annual revenue of $1.2 million per LGBT-certified business in the Austin area.
4. Using that math, we concluded that the potential economic impact of LGBT-owned businesses in the Austin area is $11.77 billion.