Let's Talk Business

When one thinks about entrepreneurship, images of a male dominated arena recently spring to mind, which is often confirmed by the media who perpetuate the stereotypical image of a well-dressed power hungry male. However, recent research from the Bank of England, found the exact opposite to be true. Apparently levels of economic activity amongst women of colour (WOC) far surpass any other groups; women from ethnic backgrounds are at the forefront of entrepreneurship. White females stood at 3.9% whereas women from mixed backgrounds at 10.9%, Bangladeshi at 10.3%, other Asian 10.3%, Black Caribbean 10.5%, with the largest group being black other standing at a whopping 29.9%. These figures are staggering when you consider the total economic activity for white males, which stands at only 8.2%.

For me these findings opened up a can of worms, and led me to question a couple of things. Firstly what attracts women of colour to start up on their own? And secondly, should we as WOC start growing and appetite for creating new businesses and organisations?

Traditionally, many black and ethnic minorities have turned to self-employment to counteract some of the barriers they have faced in the wider labour market. However, despite the fact that they are more likely to face multiple disadvantages, these women are at the forefront of the new sectors and are introducing new ways of working that are so desperately needed in the current economic climate. The UK is becoming increasingly entrepreneurial and women of colour are holding increasingly positive views about business start up. This cultural shift, is in part a legacy of the dot.com era, but also a reflection of programs such as the New Enterprise scholarship, (NES) which was dubbed “ A beacon of excellence” by a national report, for the significant impact the scheme had in helping women and ethnic minority entrepreneurs.

Nonetheless although WOC are leading the way, there are still obstacles, which often put many women off ‘going it alone.’ Research from the DTI in 2008, showed that banks, often charge female business owners more to borrow money than their male counterparts. Women typically pay one percent more in interest than a male running a comparable business. There is also the double whammy for WOC, as minority businesses, across the board face additional barriers in accessing finance.

Yet even in these turbulent times and with a gap in the accessibility to money, what this shows us is that the vast majority of WOC entrepreneurs are pursuing opportunities rather than being forced by necessity. While this is undoubtedly positive, the challenge for Government is to provide a solid financial base across the board to ensure equality and to continue to encourage WOC to persue self-employment.