Disability finance code for entrepreneurship launched to tackle barriers to entrepreneurship

The 5.5 million small businesses in the UK are the heart and soul of our nation, and we know their make-up across the country varies a great amount. They are essential to our local communities, and even more so due to their diverse backgrounds and identities.

Disabled founders, for instance, represent 25% of the UK’s small business owners, but they only account for just 8.6% of business turnover. We have significant work to do to bridge a gap like that, and access to opportunity is not equal to all to make that happen.

The Lilac Review, an independent, Government-backed review, was launched in February 2024 after estimates suggested that improving opportunity for Disabled founders could unlock an additional £230 billion for the UK economy. We at Small Business Britain have been working to identify the barriers faced by Disabled founders in the UK, developing an action plan to remove them.

After its initial phase of research, the Review’s Interim Report showed that one of the most significant challenges Disabled entrepreneurs face is access to finance. Whether it be limited visibility of financial products tailored to their needs, accessibility issues with banking and procurement processes, as well as lack of representation in financial services, Disabled entrepreneurs come up against numerous barriers in their journeys, and they need tailored and structured support going forward.

In December 2024, the Disability Finance Code for Entrepreneurship launched, designed to increase opportunities for Disabled Founders. Developed in collaboration with the Department for Business and Trade, the Lilac Review Steering Board, British Business Bank and UK Finance, the DFCE aims to break down barriers and increase access to finance for Disabled-led businesses.

Its signatories, which include Barclays, HSBC UK, Lloyds, and NatWest, will make concrete progress to open up opportunities for disabled entrepreneurs. The DFCE outlines commitments for financial institutions, goals to support Disabled entrepreneurs in 2025 and beyond.

First, they will make sure their products and services are easily accessible to entrepreneurs, which means creating new services with inclusivity in mind, as well as constantly improving the design of existing products. Secondly, we hear all the time from Disabled entrepreneurs that they benefit greatly from mentors, to whom they can relate and from whom they can learn practical steps for growing their businesses, so financial institutions should offer accessible, concrete support, such as mentoring, networking events, financial education and business planning programmes.

Lenders should also actively showcase Disabled entrepreneurs who have successfully accessed banking products and services to build and grow their businesses and, in the same vein, should actively support the representation of Disabled colleagues within their organisation, helping to uplift and celebrate Disabled people in their professional journeys.

We hope to see the Disability Finance Code for Entrepreneurship spark a lasting shift in the financial landscape, and more widely in the UK. By fostering greater engagement between the financial services sector and Disabled entrepreneurs, we can build a more inclusive, equitable, and prosperous future for all, which we are extremely passionate about at Small Business Britain.

In spring 2025, the final Lilac Review is scheduled to be shared, which will include recommendations and a call-to-action for driving positive change across society. We are extremely proud to have launched the DFCE, and looking forward to the publication of The Lilac Review, a culmination of eighteen months of research, discussion with Disabled entrepreneurs, and collaboration with Government, financial institutions, and other businesses, and a huge step in the right direction for making entrepreneurship accessible to everyone.