In the United Kingdom, small businesses are essential to the economy, employing nearly half of all workers and accounting for over 99% of all businesses. For individuals with disabilities, owning a small business or being self-employed can provide economic empowerment and the freedom to work in a way that accommodates their needs. Entrepreneurship can also help to remove barriers in the workplace and enable people with disabilities to maintain economic independence within their communities.
The Importance of Data
Having accurate data on business ownership among people with disabilities is crucial in order to create effective policies and support systems for disabled business owners. While the Current Population Survey (CPS) serves as the primary source of labour-force statistics in the US, more comprehensive measures are needed to accurately capture the number of business owners with disabilities.
To improve the accuracy of the data, the Office of Disability Employment Policy (ODEP) has collaborated with the US Census Bureau to include a disability question in the Annual Business Survey (ABS). This will provide a more detailed and nuanced understanding of business ownership among individuals with disabilities.
Insights from the Latest Data
According to the 2022 ABS, 3% of business owners have disabilities. There are minimal differences in disability prevalence between male and female business owners, however, veteran business owners are more likely to have disabilities compared to nonveterans, with 8% reporting disabilities.
Additionally, there are variations in disability rates among business owners based on race or ethnicity. For example, Asians have the lowest disability rate among business owners at 1.5%, while individuals identifying as “Other” have the highest rates of disability at 4.1%.
Comparing disability prevalence among different categories of workers, the ABS data shows that 3.8% of wage-and-salary employees, 4.2% of self-employed incorporated workers, and 5.7% of self-employed unincorporated workers have disabilities. Among these groups, veterans have significantly higher disability rates, with 14.1% of self-employed unincorporated workers reporting disabilities.
Looking Ahead
Stay tuned for the second part of ODEP’s analysis of ABS and CPS data on business ownership among people with disabilities, where we will explore disability rates among business owners by industry and examine historical trends.
In the meantime, small businesses looking to promote disability inclusion and employ individuals with disabilities can explore the Small Business Toolkit by the Employer Assistance and Resource Network on Disability Inclusion (EARN), which offers practical strategies, information, and advice for hiring and retaining disabled workers, as well as details about tax incentives and other supports for small businesses.
About the Authors
David Rosenblum is a Senior Economist for the Office of Disability Employment Policy, and Christopher McLaren is a Director of Research and Evaluation for the same office.