Co-written by Steve Lazars & Dr Halla Iqbal
Entrepreneurial activity within the UK ethnic minority population has been a topic of interest and discussion, but there are challenges in obtaining accurate data due to issues related to timeliness and definitional problems. The full UK Census, which provides detailed information, only occurs once a decade, and the data for the 2021 Census is not likely to be available until 2024. Additionally, some surveys do not capture the true extent of business activity among ethnic minority individuals who do not identify themselves as part of an ethnic minority-led firm or may have a portfolio career involving contracted roles alongside self-employment.
However, the Global Entrepreneurship Monitor (GEM) project, which started in 1998 and uses the Annual Population Survey, provides a comprehensive and consistent dataset that allows for a wider perspective on enterprise activity, including those who are considering starting a business or operating an established business. This data has been analyzed over a 16-year period, from 2002 to 2018, providing insights into entrepreneurial trends among ethnic minority groups at local levels.
The findings from the GEM survey reveal the untapped potential of the UK ethnic minority population in entrepreneurship. Despite facing challenges such as discrimination, limited access to capital, and lack of networks, ethnic minority individuals have shown resilience and determination in pursuing entrepreneurial opportunities. The data highlights the diversity within the ethnic minority community, with variations in entrepreneurial activity by ethnic group, gender, and geographic location.
Moreover, the data suggests a generational shift in perceptions and attitudes towards entrepreneurship among ethnic minority individuals, with more of them engaging in business activity that may not be captured by traditional surveys or definitions. Many individuals, especially women, are pursuing portfolio careers that combine contracted roles with self-employment as a means to finance their business ventures.
Unlocking the entrepreneurial potential of the UK ethnic minority population requires addressing the barriers they face, such as access to capital, and networking opportunities. Policymakers, organisations, and communities need to work together to create an inclusive entrepreneurial ecosystem that provides support, resources, and opportunities for ethnic minority entrepreneurs to thrive. This includes tailored programs, mentoring, and funding initiatives that cater to the unique needs and challenges of ethnic minority entrepreneurs.
The GEM survey provides valuable insights into the entrepreneurial activity of the UK ethnic minority population, revealing their resilience, diversity, and potential. By acknowledging and addressing the challenges they face and creating an inclusive ecosystem, we can unlock the full entrepreneurial potential of the UK ethnic minority population and promote economic growth and diversity in entrepreneurship.
EMEEN recognizes that promoting entrepreneurship among ethnic minority individuals goes beyond the traditional definitions and surveys. It includes acknowledging the diversity within the ethnic minority community, understanding the unique challenges they face, and supporting them in their pursuit of entrepreneurial opportunities, whether it be through traditional business ownership or portfolio careers. EMEEN believes, we can build a future where ethnic minority entrepreneurs are empowered to succeed and contribute to the growth and innovation of the economy in Northern Ireland.