Ethnic minority businesses play a vital role in the UK economy, contributing approximately £25 billion annually. Despite their relatively small number—around 250,000 firms—these businesses display a strong ambition for growth, particularly in innovation and export activities. The Centre for Ethnic Minority Entrpreneurship (CREME) at Aston’s Time to Change report* suggests that, with the right support, the contribution of EMBs to the UK economy could potentially quadruple to £100 billion.

Barriers to Growth

This potential is constrained by several barriers, notably in accessing finance, markets, and business support. Ethnic minority entrepreneurs are often discouraged from seeking external finance due to perceptions of unequal treatment and fear of rejection. This lack of trust in formal financial institutions and support services is particularly pronounced among Black entrepreneurs, leading to lower engagement and higher levels of discouragement compared to their White counterparts.

The report emphasizes the need for targeted, long-term, and trust-based support to help EMBs overcome these challenges. Recommendations in the Time to Change report include improving access to finance by addressing both perceived and actual barriers, enhancing procurement opportunities within the corporate sector, and providing more comprehensive, intensive, and bespoke business support. The creation of local community hubs and stronger partnerships between support organizations and ethnic minority-led groups is also advocated to foster trust and engagement.

For ethnic minority entrepreneurs, this report is a call to action, urging the business community, policymakers, and support organizations to work together to unlock the full potential of EMBs. By addressing these barriers and leveraging the diverse strengths of these businesses, the West Midlands can achieve more inclusive economic growth, benefitting not just ethnic minority communities but the region as a whole.

BGWM’s Commitment to Supporting Black Businesses

One of many initiatives to ensure we reach everyone in the West Midlands’ diverse communities, is our annual sponsorship of the Birmingham Black Business Show. Held on June 15 this year at the National Exhibition Centre (NEC) in Birmingham, it was a vibrant celebration of Black entrepreneurship, innovation, and professional growth. This annual event provides a vital platform for Black-owned businesses and professionals to network, showcase their products and services, and gain insights from industry leaders.

The exhibition area, hosting over 200 Black-owned businesses, was a marketplace for entrepreneurs to showcase their products and services, creating opportunities for business-to-business interactions and direct consumer engagement. The event also included networking sessions designed to help attendees make meaningful connections. Workshops and seminars covered important business topics and trends, providing practical knowledge and skills. Keynote speeches from renowned business leaders and influencers offered valuable insights and inspiration. Additionally, an awards ceremony recognised outstanding contributions and achievements within the Black business community.

At this year’s event Business Growth West Midlands (BGWM) played a pivotal role in supporting Black entrepreneurs and businesses in the region. Our involvement included hosting a number of workshops and seminars focused on critical areas such as financial management, digital marketing, and business sustainability. We were also proud to sponsor the Business Advice Hub, where attendees had the opportunity to meet with industry experts and receive free advice on achieving their business goals. This hub became an invaluable resource for many, offering personalised consultations and actionable insights. By actively engaging with the event, we reinforced our mission to empower the Black business community and foster a thriving entrepreneurial ecosystem in the West Midlands.

What else is BGWM doing to reach diverse businesses?

Following the recommendations from CREME, and thanks to a £270,000 investment from the West Midlands Combined Authority (WMCA), five established community organisations will work with the region’s Race Equalities Taskforce and Business Growth West Midlands to connect local entrepreneurs to regional business support.
All five hubs will be run by organisations that already have a strong track record of supporting diverse communities by connecting them with new opportunities. Read the full story here.

Send your business enquiry to our expert advisers today and start receiving tailored support and impartial advice from our industry experts.

*The report "Time to Change: A Blueprint for Advancing the UK’s Ethnic Minority Businesses," authored by the Centre for Research in Ethnic Minority Entrepreneurship (CREME), offers an in-depth analysis of the challenges and opportunities faced by Ethnic Minority Businesses (EMBs) in the UK. It underscores the significant economic and social contributions of these businesses while identifying persistent barriers that hinder their full potential.