After the Bell: Gays have economic power and here’s why they excel

Why does it seem like gay people excel in nearly everything, and in some cases, outperform their straight counterparts? 

This question is coming up a lot and one in which I have been asked by heterosexual counterparts in my social circles. The thinking behind the question is that people identifying as lesbian, gay, bisexual, transgender, intersex, and other sexual orientation and gender categories (LGBTI+), excel academically, financially, and career-wise.

Prominent people have also made this observation. Larry Kramer, an American playwright and gay rights activist who was instrumental in protesting against the lack of treatment and funding for people with Aids, declared in 2004: “I love gay people”. Kramer continued: “I think we’re better than other people. I really do. I think we’re smarter and more talented and more aware.”

So, is there a modicum of truth behind the views of Kramer and others?

As a gay-identifying man, I bring some credibility to this debate and can hopefully provide some insights. And besides, I also revel in shoving the gay agenda down people’s throats while also creating awareness about the LGBTI+ community during October, which is Pride Month in South Africa.

Being part of the LGBTI+ community automatically makes you part of a marginalised community. If you are black and a woman in the community, it adds another layer of marginalisation. Many people who are part of the community grew up being bullied — with their sexuality and the essence of being demonised. Imagine homophobic attitudes following you — from childhood to adulthood  — with intolerant people attempting to prove that your existence is a mistake. I too, growing up in Soweto as openly gay during the ’90s, have been subjected to intolerant people and hateful attitudes.

These attitudes could either break you and reinforce ideas that there is something wrong with you or you could use them as fuel to prove people wrong. The latter probably happens for most LGBTI+ people, who use pernicious attitudes as a ticket out of an unwelcoming environment.

Negative attitudes and stressors possibly unnerve gay people into compensating for homophobia through academic, career and financial success. And this kind of success comes with economic power.

The LGBTI+ community is important for the economy and contributes to its growth in South Africa. This area of research is understudied and still nascent. However, it is starting to attract more researchers, equality and freedom pursuers, among them the Other Foundation, which has studied the size and economic significance of the LGBTI+ community.

In research released last week, the Other Foundation found that LGBTI+ people in South Africa contribute R250-billion annually to the national economy as consumers, employees and entrepreneurs. This figure is nothing to scoff at. It is about 13% of the government’s budget (R2.2-trillion) this year to run the country and equivalent to the last bailout taxpayers provided Eskom to remedy its debt situation.

In other words, the LGBTI+ community has enormous buying power and maybe this entrenches perceptions that gay people are well-heeled and accomplished.  After all, a peek at my Instagram feed constantly points to gay couples vacationing in Mykonos, owning matching supercars, and meal-prepping after a visit to Woolworths Food.

The Other Foundation last measured the community’s buying power in 2017, finding that it stood in the range of R53-billion to R204-billion at the time. This has now swelled to R250-billion. 

It’s not easy to undertake research of this kind. There is no available research similar to it. Most research has been centred on the economic costs of discrimination against LGBTI+ people in different countries — for example, exclusion that results in lack of job opportunities, livelihood, or financing tools for entrepreneurship ventures. No research has focused on the economic opportunity that LGBTI+ people can offer if they are included as a market segment.

The Other Foundation’s research surveyed 400 respondents in South Africa, aged 18 to 65, and identifying as being part of the LGBTI+ community. It takes into account their income, savings, investments and debt.

To estimate the value of the LGBTI+ community, the Other Foundation assumed the size of this community in South Africa to range between 1.65% and 6% of the total population, which is comparable to existing data for other emerging markets, such as Brazil. It used these percentages and macroeconomic indicators such as private consumption, employment rates and labour productivity to determine the R250-billion purchasing power. The research carries a 95% confidence rate and a margin error of 4.9%. 

The headline findings are interesting.

The survey found that 90% of the respondents were engaged in income-generating activities, with 75% employed either part-time or full-time, showing strong workforce participation despite the country’s unemployment crisis. 

About 44% hold managerial positions, and nearly one-third have savings exceeding R100,000. It also found that just more than 61% of the LGBTI+ people were socially conscious consumers, preferring businesses that demonstrate LGBTI+ inclusion.

However, there are also worrying points.

The survey found that 25% of respondents believed that they did not benefit from equal career opportunities compared with their non-LGBTI+ co-workers as progressive laws that prohibit discrimination based on sexual orientation collide with social attitudes, with stigmas persisting, especially in rural areas. 

And more painful is that the majority (78%) of the respondents have experienced discrimination, some form of violence, harassment and bullying. This situation is particularly alarming for transgender and gender non-conforming respondents. 

While progress has been made to include gay people in the economy and labour market, there is still room to drive this inclusion forward.

Maybe businesses should adopt inclusive policies that provide equal career opportunities for LGBTI+ employees. These policies must include explicit non-discrimination, and diversity training, and foster health benefits, especially transgender and gender non-conforming employees. Financial institutions and government agencies should develop funding initiatives to support LGBTI+ entrepreneurs. To ensure long-term economic empowerment, it is essential to provide LGBTI+ individuals with access to higher education and skills.

After all of this, maybe there might be clear and reliable indicators (not just anecdotal experiences) to measure excellence by gay people. DM