Start Up Loans were introduced to tackle inequality in
society by ensuring that people from all backgrounds
can access the money they need to start a business.
Since the scheme began
in 2012, more than 55,000 businesses have been
supported – equivalent to around 25 every day. More
than £400 million of finance has been provided and
helped create more than 66,000 jobs. 1 in 5 of the
loans have gone to BAME recipients.
The findings underpin the value which BAME citizens add
to the UK’s economy. They also highlight how the
government is working to create a strong
entrepreneurial business environment and a fairer
society.
Business Minister said:
Through our efforts to create a fairer society, we
are ensuring that entrepreneurs from all backgrounds
can access the finance they need to make their
businesses grow and succeed.
The government is continuing to look at new ways to
tackle racial inequality in our society and make sure
that everyone has the same opportunities to progress.
The Prime Minister has previously made clear as part of
the Race Disparity Audit launched in 2016 that if an
ethnic disparity cannot be explained then there must be
a change and we, as a society, must take action to
tackle injustices.
In 2017, nearly 8% of the ethnic minority population
were involved in starting or running a new business –
compared to 14.5% of the white population.
According to data published last year, 15% of workers
in the UK were self-employed in 2018. While Pakistani
and Bangladeshi workers were most likely to be
self-employed, black workers were least likely to be.
While there are less black and ethnic minority
entrepreneurs in the UK, the new data shows that from
2013 to 2017, ethnic minority entrepreneurs received
start-up loans at a higher rate. Last year, 5.7 black
entrepreneurs per 10,000 people received a start-up
loan, compared with 2.4 white entrepreneurs per 10,000
people.
This data shows that the government is taking action to
support BAME entrepreneurs as it works to build a
society that works for everyone, regardless of their
background.
Sandra Kerr, race equality director, Business in the
Community said:
BAME employees often find they are not able to
progress in traditional work environments so may
choose to start their own businesses.
Access to start-up finance is vital and we are
encouraged to see government investment going into
ensuring we have a diverse business community that
reflects BAME talent and entrepreneurialism.
Research reveals 5% of the UK’s small businesses were
majority-led by someone from an ethnic minority group
with 90% being led by someone from a white group. 13%
of the UK population belong to a black, Asian, mixed or
other ethnic group, according to
government data.
The World Bank ranks the UK one of the best places in
the world to start and grow a business with 1,100
businesses starting every day in Britain – or 1 every
75 seconds. Small and medium size businesses support
more than 13 million jobs across the UK.
