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How Philadelphia’s LGBTQ-owned companies thrive: Tips from local small business leaders

By June 11, 2025No Comments

(This column originally appeared in the Inquirer)

Ashraf Khalil, the owner of iCreate Cafe in Pottstown, flies a rainbow flag outside the business as a clear message: “You’re welcome here.”

“As an immigrant, gay, vegan business owner, I sit at the intersection of a few ‘minority’ identities — and I’m proud of every one of them,” Khalil said. “Owning that and staying true to myself has helped build a business where people feel at home, no matter who they are or what they eat.”

There are an estimated 1.4 million LGBTQ+ business owners in the U.S., including many in the Philadelphia metropolitan area, according to the National LGBT Chamber of Commerce (NGLCC). These businesses contribute $1.7 trillion to the U.S. economy annually, while the LGBTQ+ community as a whole spends more than $917 billion every year on goods and services.

“Many of our regulars — some who’ve been coming for over a decade — first walked in because they saw that flag,” Khalil said. “It told them they could be themselves.”

If you’re LGBTQ and running your own small business — or thinking of starting one — here is some advice from experienced business owners.

Get certified as an LGBTQ Business Enterprise

To be certified as an LGBTQ Business Enterprise with the NGLCC, your business needs to be at least 51% owned, operated, managed, and controlled by an LGBTQ individual who is a U.S. citizen or lawful permanent resident.

The benefits are many. Certified businesses can join the NGLCC’s Supplier Diversity Initiative to connect with corporate buyers, participate in networking and business-building events, and apply for certain contracts as minority-owned businesses. They also enjoy enhanced visibility in the community and nationwide.

Thanks to these resources and opportunities, the NGLCC says, certified suppliers stay in business more than twice as long as the average American small business.

“We needed a way to showcase that LGBTQ people were a vital part of America as business owners and employers,” NGLCC cofounder and president Justin Nelson said. “LGBTQ business owners were, and are, an essential part of the engine that makes the U.S. economy run and therefore deserve an equal place at the table.”

Chance Mitchell, cofounder and CEO of the NGLCC, said LGBTQ-owned businesses have created tens of thousands of jobs nationwide.

Becoming certified requires creating a business profile on the NGLCC website, submitting supporting documentation about yourself and your business’ legal structure, hosting a site visit and responding to any questions from the organization’s certification committee. A two-year renewal process is also required, and there are annual fees.

Tap into LGBTQ networks

Several business owners in the region pointed to networks that have helped them.

Crust Vegan Bakery in Manayunk belongs to the LGBTQ+ Chamber of Commerce owner Meagan Benz said. “They consistently have provided us with resources like community events, grants to apply for, and more,” Benz said.

Nima Etemadi, who runs Cake Life Bake Shop in Frankford, belongs to the Independence Business Alliance, which provides connections, opportunities, and other resources to LGBTQ+ businesses, professionals, and allies in the Greater Philadelphia tristate area.

Khalil recommends StartOut and William Way Center, both nonprofits that support both LGBTQ businesses and individuals.

“LGBTQ small businesses need support from organizations like these that are easy to find, simple to use, and built for real life,” Khalil said.

Visibility matters

Etemadi said the only real disadvantage of being an openly LGBTQ-owned business is that “we live in a country rife with bigotry against our community,” and there “are inevitably many people who won’t ever be your customer just because of who you are and opportunities you miss for the same reason.”

Etemadi said the risk level for violence and vandalism is higher for LGBTQ business owners, and it’s an “unfortunate reality.”

In the last three years, more than 2,200 anti-LGBTQ incidents have been recorded in the U.S., according to advocacy group GLAAD (formerly known as the Gay and Lesbian Alliance Against Defamation). Those include protests and propaganda as well as vandalism, assaults, and threats of violence.

“There are still folks who react negatively,” said Khalil, of iCreate Cafe in Pottstown. “Some see the flag or our all-gender restroom signs and leave or post fake reviews.

“It stings, but we’ve been here in Pottstown for 13 years, and the love and support from the community far outweighs the noise,” Khalil said.

LGBTQ business owners “should always be prepared for hate and bias, but we need to deal with it calmly and professionally,” said Micky Angelo Petrillo, who is transgender and the owner of Baskets-n-Beyond, a gift store in Dumont, N.J.

“Let your response reinforce your values, not theirs,” Petrillo said. “You need to stay calm so they can’t say transgender people are hateful.”

Etemadi said being an LGBTQ-owned business provides a “community that can rally around you and support you.”

“This is especially powerful with the queer community, since its members cut across all other cultural groups and demographics,” Etemadi said.

Ray Daly, the owner of eco-friendly refill store and general shop Ray’s Reusables in Northern Liberties, said the LGBTQ community has always been really supportive of their business. The neighborhood has “a lot of queer-owned businesses,” and they enjoy “a lot of camaraderie,” they added.

“When I think back to being younger, I don’t remember having many queer role models or having many queer adults in my life,” Daly said. “There’s something special about being able to support and cheer on someone in whom you see your identity reflected.”

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