July 2, 2025
LGBTQ businesses contribute $1.7 trillion annually to the economy and help strengthen communities nationwide. But which states have the most supportive environments for LGBTQ entrepreneurs?
Ranked at #3, Delaware is setting the standard for LGBTQ-friendly business climates, according to a new report by B2B Reviews. The study evaluated states across several key factors, including average number of LGBTQ business enterprises, state equality, state and workforce representation, business climate and growth and unemployment rate to highlight where LGBTQ entrepreneurs are best positioned to succeed.
Why does Delaware stand out?
To determine which states are most friendly for LGBTQ businesses in 2025, the study examined key metrics that focused not only on business factors but also on the LGBTQ community. Seven key metrics that impact the LGBTQ community and business owners were identified and compared across all 50 states and the District of Columbia. Metrics that reflected a steady LGBTQ community and demonstrated significant effort to protect and grow LGBTQ-owned businesses scored higher. Each state was ranked within each metric and then graded on a 100-point scale, with 100 points representing the most friendly environment for LGBTQ businesses.
On its 2025 list of “Safest States for LGBTQ+ Americans,” SafeHome.org ranks Delaware third.
“Earning an ‘A’ grade and maintaining its third-place ranking on our list is Delaware, with an impressive safety score of 94.5,” notes the SafeHome.org summary. “Known as ‘The First State’ for its prompt ratification of the Constitution, Delaware was also among the first states to protect LGBTQ+ rights by decriminalizing homosexuality in 1973.”
As of last year, that state had passed 45 pro-equality laws. In 2024, the summary notes, Delaware “expanded its already formidable protections against sexual orientation discrimination to include citizens identifying as pansexual or asexual specifically.”
The summary also notes that Delaware’s 4.5% ratio of LGBTQ citizens and 35% share of LGBTQ+ citizens raising children are among the nation’s highest, and that according to the latest FBI data, there were no hate crimes motivated by sexual orientation or gender identity prejudice reported (80% of Delaware’s law enforcement agencies reporting). Furthermore, the summary states, “Delaware’s progressive electorate also notably made Sarah McBride the nation’s first openly transgender member of Congress.”
Earlier this year, Delaware public schools implemented one of the first LGBTQ+-inclusive history curricula in the nation. In January 2025, Governor Bethany Hall-Long established the state’s first LGBTQ+ Commission with the first executive order of her brief time in office.
Her successor, Governor Matt Meyer, marked June 2025 as Pride Month by announcing the appointment of nine individuals to the Commission, marking a significant milestone in the state’s ongoing commitment to equity, inclusion and the advancement of LGBTQ+ rights. Its first order of business is to design policies to ensure the safety, sanctity and accessibility of relevant healthcare services for the Delaware LGBTQ+ community.
“I’m proud to announce the complete Delaware LGBTQ+ Commission, which will be critical as we work to protect and reinforce the rights of all Delawareans,” Meyer said. “I thank each of them for their community leadership and service. I am asking the Commission to get to work immediately, as a top priority, to address and protect the unique health care needs of LGBTQ Delawareans.”
The Commission is the first state-level body in Delaware dedicated solely to advocating for the LGBTQ+ community and is comprised of individuals with diverse backgrounds, identities and expertise in nonprofit advocacy, public service and community engagement. It will serve as a crucial advisory body to the governor, the General Assembly and state agencies on policies impacting LGBTQ+ Delawareans, including mental health, education, housing and civil rights.
The members are:
“It’s deeply humbling to be appointed by Governor Meyer to help lead the newly formed Delaware LGBTQ+ Commission. His recognition of the LGBTQ+ community, and his call for leadership and coordination in state policy, is both meaningful and urgent,” said Castle. “As a transgender entrepreneur, business leader and advocate who has worked to protect LGBTQ+ rights, advance sustainability technology and promote fair and equitable land use in New Castle County, I’m honored to be called upon to improve the lived experience of so many through collaboration with community members and partners across the state. I look forward to guiding the Commission’s work on critical issues like access to healthcare, equal rights, housing, education and public safety. No Delawarean should be left to ask whether the First State is a place where the LGBTQ+ community can thrive. We will make certain the answer is clear.”
A Delaware Public Media interview with Castle, whose company OmniPotential Energy Partners is a past winner of Delaware Prosperity Partnership’s Startup302 pitch competition, is available here.