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Black business growth must be given greater support says new report
POTENTIAL: The contribution of black and ethnic minority owned businesses could rise from £25 billion to £100 billion if they are given the right support
The Time to Change report from Aston University and NatWest calls for big changes in the way black and minority ethnic businesses are treated by the UK’s finance and business sectors
BLACK AND minority ethnic busi-
ness owners must be supported in their efforts to grow, especially in light of the pandemic’s harmful effects on people from these communities, according to a new report.
Research conducted by Aston University’s Centre for Research in Ethnic Minority Entrepreneurship (CREME) and NatWest is calling for significant improvements in the support that black and ethnic minority-owned firms receive from the business and finance sectors in the UK.
These businesses encounter several challenges in obtaining financing, access to markets, and high-quality business support, the report, called Time to Change, concluded.
It made 10 key recommendations and said
Monder Ram
REPORT: Monder Ram, director of CRÈME, Aston University
that if they are put into action, these companies’ annual contribution to the UK economy could rise from £25 billion to £100 billion.
“This major report sets out an ambitious yet practical agenda to realise the potential of UK’s ethnic minority businesses” said Monder Ram, director of CREME.
“The entrepreneurial ambition of ethnic minorities can play a crucial role in the UK Government’s vision of ‘Levelling Up’ prosperity across regions, promoting trade opportunities of ‘Global Britain’ and creating a more cohesive society”.
Ram continued: “Drawing on the latest research and examples of international best practice, the report presents a comprehensive approach to tackling the barriers faced by firms owned by ethnic minority communities.
“We pinpoint key challenges and present recommendations – informed by extensive consultation with business support practitioners and entrepreneurs – that invite policy-makers, corporations and entrepreneurs to collaborate in a new partnership to advance entrepreneurial activities and the UK’s diverse communities.”
Among the report’s recommendations are that the UK’s business and finance sectors should work together to ensure more sustainable and quality business support to help minority business owners realise their growth potential.
It also calls for the creation of local community hubs of business and finance organisations to better engage with Ethnic Minority Businesses (EMBs), and ease their access to finance and for the government to develop a UK-wide policy on inclusive entrepreneurship to set out a clear vision for achieving inclusive growth.
Dr Eva Kašperová, a research fellow at CREME, said:
“To address the barriers faced by EMBs and help them realise their entrepreneurial potential will require commitment and leadership from the government as well as local business support ecosystem actors.
“The current lack of an explicit UK-wide policy on inclusive entrepreneurship could mean that some parts of the country are left behind in terms of tackling structural inequalities and enabling entrepreneurs from ethnic minority communities and other under-represented or disadvantaged groups to access finance, wider markets and quality business support.
“If past experience is a guide, ensuring commitment from key stakeholders may be the biggest challenge.”
Andrew Harrison, head of Business Banking at NatWest Group, said: “As the UK’s biggest bank for business, we’re committed to championing small businesses and supporting growth, but we know that there are barriers which disproportionately affect ethnic minority businesses.
“This is why we aim for at least 20% of the places on our 13 nationwide accelerator hubs to be for ethnic minority entrepreneurs. In 2021, 26% of businesses in our hubs were EMBs.
“Only close collaboration can deliver meaningful change to ensure EMBs get the support they need to reach their full potential. Now is the time to accelerate action, and at NatWest we commit to playing an integral role in the change that is required.” n
Black businesses are boosting the economy… and they need our support
The British economy benefits great-
ly from the contributions of blackowned enterprises. Entrepreneurs from black and minority ethnic backgrounds contribute an estimated £25 billion to the economy, according to a recent study by the Federation of Small Businesses.
And these are innovative businesses – the last decade has seen black entrepreneurs expanding into industries such as technology, financial services and engineering; fields in which previously, there were few people of African Caribbean heritage.
These businesses had to demonstrate that same innovative spirit and resilience to successfully navigate the Covid 19 pandemic.
Minority-owned businesses, which often lack the same access to finance and business support than their white counterparts, were especially hit hard. Despite the restrictions of lockdown many continued to prosper, with many transferring their business online and developing new products and services.
This sixth edition of The Voice Black Business Guide includes stories of how black-owned firms have adapted to a changed business landscape.
There are inspiring accounts of entrepreneurs who rose from personal adversity to achieve success and others who have found ways to get round the lack of financial support from banks in order to grow their companies.
It also features stories about business owners who, through their accomplishments, are changing the way their industries work to make them more inclusive.
For many in the black community entrepreneurship represents much more than just owning a successful business.
Black-owned businesses are uniquely positioned to assist in creating wealth in the majority-black communities where they often reside. They have a deep understanding of the local communities they serve, and their success has a significant impact on creating jobs.
The Voice has a long history of championing black businesses as well as campaigning against the barriers they face such as discriminatory bank lending.
As we report in this edition of the guide, recent research from Aston University is calling for significant improvements in the support that black and minority-owned firms receive from the UK’s business and finance sectors. This call mirrors something The Voice has always highlighted - strengthening black businesses strengthens the economy, which in turn helps the UK to remain globally competitive.
As Aston University’s Monder Ram says the entrepreneurial ambition of ethnic minorities can play a crucial role in the government’s ‘Levelling Up’ agenda, helping to create prosperity and a more cohesive society. As with previous editions the Voice’s Black Business Guide provides these entrepreneurs with a platform to showcase their products and services to a wider audience and enable potential customers to support their continued growth.
Businesses in a wide range of sectors – from hair and beauty, food tech, publishing, and property to name a few are featured in this latest edition which is being published in print and online. It is also a resource that can be shared with business support organisations, policy-makers to facilitate collaboration with black business owners. The landmark Black Pound Report 2022, found that ‘multi-ethnic’ consumers, (the term it uses to describe people from black, Asian, and other ethnic groups) have an annual disposable income of £4.5 billion. The figure for African Caribbeans consumers is £1.1 billion.
Just think about that. This buying power is equivalent to the Gross Domestic Product (GDP), of a number of middle income countries. A significant proportion of that money that should be spent with black businesses. Doing so helps these businesses grow and contribute to generational wealth in the communities in which they are based. n
Please continue to support black-owned businesses. If you would like to advertise in the next edition, please contact us at: advertising@thevoicemediagroup.co.uk
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