Ethnic minority firms ‘need concerted government action’

THE Government must take “concerted action” to help Britain’s ethnic-minority businesses. That was the message from a major Aston University report aimed at championing entrepreneurship across the diverse communities.

The Centre for Research in Ethnic Minority Entrepreneurship at the University and NatWest have launched the ‘Time to Change’ report, which sets out ten recommendations to help ethnic-minority businesses.

And the organisations say that if they can be helped to overcome the barriers in their way, their GVA contribution to the UK economy could rise from the current £25 billion a year to £100 billion.

The report says there should be UK-wide support for these businesses and they should be integrated into broader policy agendas of inclusive growth, productivity and innovation.

It found they were particularly hit hard by the pandemic due to the sectors in which they tended to operate, meaning they will need focused support to help them to grow.

The report says there needs to be strong action to ensure entrepreneurs are not discouraged from seeking finance and business support.

And it says organisations across the public, private and third sectors including support agencies and finance providers – should be held accountable for how they engage with these businesses.

The report also highlights the need for greater accountability of organisations across public, private and third sectors, including business support agencies, finance providers and large purchasing organisations, for their business engagement.

Professor Monder Ram, director of the centre at Aston Business School, said: “This major report sets out an ambitious yet practical agenda to realise the potential of the UK’s ethnic minority businesses.

“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.

“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.”

Andrew Harrison, head of business banking at NatWest Group, added: “We’re committed to championing small businesses and supporting growth but we know there are barriers which disproportionately affect ethnic-minority businesses.

“This is why we aim for at least 20 per cent of the places on our 13 nationwide accelerator hubs to be for ethnic-minority entrepreneurs.

“In 2021, 26 per cent of businesses in our hubs were ethnic-minority businesses. Only close collaboration can deliver meaningful change to ensure ethnic-minority businesses get the support they need to reach their full potential.

“Now is the time to accelerate action.”