The Government must take "concerted action" to help Britain's ethnic minority businesses - that's the message from a major report aimed at championing entrepreneurship across Britain's diverse communities.
The Centre for Research in Ethnic Minority Entrepreneurship (CREME) at Aston University and NatWest are today launching the Time to Change report, which sets out ten recommendations to help ethnic minority businesses (EMBs).
And the organisations say that if EMBs can be helped to overcome the barriers in their way, their GVA contribution to the UK economy could rise from the current £25bn a year to £100bn.
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The report says there should be UK-wide support for EMBs and that they should be integrated into broader policy agendas of inclusive growth, productivity and innovation.
It found these businesses were particularly hit hard by the Covid-19 pandemic due to the sectors in which they tend to operate, meaning they will need focused support to help them to grow.
The report says there needs to be strong action to ensure ethnic minority entrepreneurs are not discouraged from seeking finance and business support.
And it says organisations across the public, private and third sectors - including business support agencies and finance providers - should be held accountable for how they engage with EMBs.
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 with EMBs.
Professor Monder Ram, director of CREME at Aston Business School, said: “This major report sets out an ambitious yet practical agenda to realise the potential of 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.”
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 EMBs.
“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.”
