Overcoming Challenges as a BAME Entrepreneur
As a Black, Asian, or Minority Ethnic (BAME) entrepreneur, the path to success can be both rewarding and challenging. While we strive to achieve our entrepreneurial dreams, it's important to address the common obstacles that BAME entrepreneurs often encounter. In this empowering post, we'll explore strategies to overcome biases, build diverse teams, and thrive in the competitive business world.
A recent report titled "Alone Together: Entrepreneurship and Diversity in the UK," published by the British Business Bank and Oliver Wyman, sheds light on the persistent disparities in business outcomes faced by Black business owners and those from Asian and Other Ethnic Minority backgrounds. These disparities are influenced by systemic disadvantages and include:
Black business owners report a median turnover of £25,000 per annum, significantly less than their White counterparts at £35,000. Moreover, a substantial percentage of Black business owners fail to make a profit and struggle to meet their financial and non-financial aims.
While the success rate for starting a business for Black entrepreneurs aligns with the UK average, entrepreneurs from Asian and Other Ethnic Minority backgrounds face a significantly lower success rate.
Female entrepreneurs from ethnic minority backgrounds experience even more significant disparities. They report making no profit at higher rates than their White counterparts. Societal inequalities and established gender roles contribute to these disparities, even after accounting for caring duties.
Location plays a crucial role in entrepreneurial success. London, despite its vibrant business ecosystem, proves to be a challenging place for entrepreneurs, with lower profitability rates and higher competition. Entrepreneurs in the South East, on the other hand, experience more success.
Household income is a crucial predictor of entrepreneurial success. Business owners with higher household incomes are more likely to report profits, business growth, and meeting financial goals.
What can we do to empower BAME entrepreneurs?
While these challenges are daunting, BAME entrepreneurs have shown resilience and determination. To overcome these barriers and thrive in the business world, consider the following strategies:
Surround yourself with mentors, advisors, and fellow entrepreneurs who understand the unique challenges you face. Seek out organisations and networks that support BAME entrepreneurs. Building strong networks are critical for growth.
Despite challenges in accessing funding, explore various sources of finance, including grants, loans, and angel investors. Initiatives like the Start-Up Loans program and ethnic minority business support organisations can be valuable resources.
Don’t’ get stuck with a limited and stagnant perspective. Embrace diversity within your team. Diverse perspectives and backgrounds can lead to innovative solutions and better problem-solving. Foster an inclusive workplace culture.
Consider the location of your business carefully. While London offers opportunities, it also presents challenges. Explore regions with lower competition and supportive business environments. Also working from home, remote offices, cafes and hotels is still feasible. Also think about joining organisations like IOD or private business clubs.
Invest in financial education and literacy to make informed financial decisions for your business.
As BAME entrepreneurs, you have the potential to break barriers and drive change. Let's support one another, share your insights and experiences, and empower fellow BAME entrepreneurs on their journey to success. Together, we can build a more inclusive and prosperous business landscape.
If you found this post valuable, please leave a comment, and share your experiences or insights to inspire and empower others. Let's uplift each other as we overcome challenges and strive for greatness in entrepreneurship!
