Disabled Entrepreneurs Face £230bn Exclusion from UK Economy, Says Landmark Review
Disabled entrepreneurs in the UK are being systematically disadvantaged by financial, operational, and accessibility barriers — undermining businesses that could contribute an additional £230 billion to the national economy, according to the final report of the Lilac Review published this week.
Backed by government and led independently, the Lilac Review reveals that disabled business owners — who make up roughly one in four UK entrepreneurs — are disproportionately underfunded, underrepresented, and blocked from growth due to entrenched institutional inequalities.
Launched in February 2024, the review set out to identify and address the specific obstacles that disabled founders face. Its findings highlight a stark reality: although disabled-led businesses already generate nearly 9% of private sector turnover, they frequently struggle to access support, navigate rigid funding systems, and overcome systemic barriers within both public and private sectors.
Barriers include inadequate access to finance — with nearly half of disabled entrepreneurs citing this as a top challenge — as well as the inefficiency and inaccessibility of mainstream business support schemes. One in three respondents said such schemes lacked reasonable adjustments or failed to cater to their specific needs.
Perhaps most strikingly, the report cites research suggesting that disabled entrepreneurs are up to 400 times less likely to secure investment than their non-disabled counterparts. Biased funding environments, inaccessible pitch processes, vague eligibility criteria, and restrictive application structures were all identified as contributing factors. Sources such as research by the Disabled Entrepreneurs Network and comments from organisations like Diversity VC further corroborate these findings, warning that equity investment remains out of reach for most disabled founders.
The Lilac Review calls for a ‘trust-based’ system to replace outdated disability assessments, recommending the abolition of frequent reassessments for those with lifelong or progressive conditions. This move would not only ease the administrative burden on disabled individuals but also reduce strain on the Department for Work and Pensions, frequently criticised for its complex and bureaucratic handling of disability benefits.
Among the broader structural issues detailed in the report are the economic penalties often incurred by disabled individuals who attempt to scale a business while managing health-related costs or conditional access to welfare support. The uncertainty around benefits withdrawal remains one of the most significant fears facing disabled entrepreneurs, discouraging many from scaling or formalising their ventures.
The timing of the report is politically significant. It has been released amid controversy over the Conservative government’s proposed tightening of disability benefit eligibility, a measure that has met criticism from within both Parliament and disability rights groups including Scope and Disability Rights UK. In contrast, Labour MPs have urged a more supportive and enabling policy stance for disabled individuals who want to contribute economically.
Victoria Jenkins — co-chair of the Lilac Review and founder of adaptive fashion label Unhidden — emphasised the urgent need to dismantle structural obstacles: “Disabled entrepreneurs are innovative, impactful, and growing. Yet we remain underrepresented, 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 report contains a series of actionable recommendations for both public and private sectors. These include inclusive procurement strategies that prioritise disabled-led businesses within public contracts, local authorities appointing representatives for disability entrepreneurship, and closer collaboration between NHS services and business support hubs to provide holistic backing for founders with long-term conditions.
Small Business Minister Gareth Thomas acknowledged these failings in the review’s foreword, stating that disabled business owners are “being let down by systems and processes” and promising to consider the recommendations as the government drafts a new small business strategy.
The report also points to wider economic and social gains, arguing that disability often sparks innovation — citing the origins of everyday technologies such as voice recognition software, the electric toothbrush, and text messaging, many of which were initially designed to support disabled users. As highlighted by the British Assistive Technology Association (BATA), such tech now forms the foundation of our digital lives and underscores the broader value of inclusive innovation.
Ultimately, the Lilac Review is more than a mere policy document: it serves as a wake-up call and roadmap to unlock the vast economic potential of disabled entrepreneurs. By reforming funding systems, destroying stigma, and redesigning support structures, the UK stands to profit both economically and socially from a more inclusive approach.
Read more:
Barriers faced by disabled entrepreneurs cost UK economy £230bn, report warns (Business Matters)
Explore the original Lilac Review at www.lilacreview.com
Understanding disabled entrepreneurship (British Business Bank)
