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Posted: Thu 29th May 2025
An inquiry has concluded that significant financial, operational, and accessibility barriers are holding back the UK's disabled-led businesses.
Disabled entrepreneurs represent 25% of the UK's 5.45 million small businesses, but only 8.6% of business turnover. The government commissioned Lilac Review estimates that removing the obstacles they face could unlock £230 billion in additional UK business revenue.
The review's final report made more than 20 recommendations including targeted financial support, enhanced accessibility, and inclusive support networks and procurement.
The research by ARU Peterborough academics and Small Business Britain with support from Lloyds surveyed 750 disabled entrepreneurs and found 73% want to boost revenues, with 44% keen to expand.
But despite the resilience shown by disabled founders, securing growth and finding funding is often harder due to additional and complex barriers, it found.
Factors such as a higher likelihood of economic disadvantage, the ongoing costs of managing a disability, fear of losing essential welfare or benefits, and potential future gaps in productivity due to health conditions were found to be key factors contributing to "a systemically unequal financial landscape that urgently demands attention".
Disabled people on average face an additional £1,010 a month in costs due to the 'disability price tag', before business costs, and a previous study from Access2Finance revealed disabled founders are 400 times less likely to secure investment than non-disabled counterparts.
On business support, 35% of disabled entrepreneurs said they find current programmes inaccessible, and 67% expressed worry that heightened international scrutiny of diversity, equity, and inclusion (DEI) initiatives could negatively impact UK businesses. Half feared a personal impact.
The co-chair of the Lilac Review is Victoria Jenkins, founder of adaptive clothing brand Unhidden and Enterprise Nation's 2021 Female Start-up of the Year. She said:
"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 findings of this report are clear: change is needed, not later, but now. That means inclusive finance, accessible business support, and communities that empower rather than exclude.
"It has been an honour to co-chair this review, and I hope the voices within it spark action, partnership, and a fundamental rethinking of what opportunity should look like - for everyone."
Ensure the new Business Growth Service is fully accessible, with Disabled entrepreneurs included in its design and delivery.
Mandate accessibility in all government-backed enterprise programmes, from procurement to delivery.
Tie public procurement to accessibility outcomes, opening up Government procurement to disabled founders by making the process more accessible.
DWP to work with government partners including DBT and HMRC on the future of Access To Work to consider opportunities for entrepreneurs as part of the Pathways to Work Green Paper.
Tie local business support funding to accessibility, including the appointment of a named council representative for disabled entrepreneurship.
Formalise partnerships between disabled networks and enterprise agencies to increase accountability and coordination.
Grow the reach and impact of the Disability Finance Code for Entrepreneurship, working with UK Finance, British Business Bank and the wider sector to increase sign-up and strengthen commitments.
Develop financial services-wide data on Disabled entrepreneurs and their use of financial products and services.
Investigate and develop flexible lending options, such as payment holidays and tailored repayment terms, to meet diverse business needs.
Embed accessibility in investment processes by redesigning application and due diligence procedures to be inclusive.
Provide support for scaling including investment readiness programmes, tailored growth-stage finance, and mentorship.
Build financial confidence and skills - Invest in financial literacy and confidence building programmes tailored to Disabled entrepreneurs, including how to apply for funding, manage cash flow and engage with investors.
Expand mentorship and networking opportunities.
Develop peer-to-peer mentoring and local support networks that centre lived experience and grassroots leadership.
Procurement and trade
Launch a Disability Trading Framework, supporting inclusive procurement and supplier diversity.
Co-design procurement systems with Disabled entrepreneurs, ensuring accessible portals, documentation and bidding processes.
Include disabled founders in supplier diversity targets and measure progress transparently. Develop national benchmarks and reporting for disabled supplier inclusion, to drive improvement across sectors.
Invest in inclusive AI training and skills development, ensuring access to practical tools and personalised learning.
Support innovation in AI-powered assistive technology, including communication tools, financial apps and learning aids.
Embed co-design into AI policy and product development, involving Disabled entrepreneurs directly.
Promote inclusive design principles like 'design for extremes' to ensure AI tools are accessible by default.
Champion AI for flexible and independent working, especially for founders managing energy or health limitations.
Continue Lilac Review's AI and accessibility work, supporting further research and standards.
