3 Oct 2021
We love to see startup businesses grow from the initial idea to securing funding and as part of Black History month, we take a look at resounding successes from Black-owned businesses in the UK. From the types of businesses to how they’re funded, our blog celebrates Black entrepreneurs and explores findings from the Black Report with Google for startups.
In the US, historically Black-owned businesses were set up in direct response to the lack of opportunity and space available after the turn of the 20th century. More African Americans had the space to become entrepreneurs and hired fellow African Americans which created instant opportunities for all. In the UK, many Black-owned businesses came from the Windrush generation post-1948, introducing a more diverse post-war workforce and creating more opportunities for entrepreneurs.
Diversity is essential for the business industry in the UK and this pattern of creating opportunity was reflected in the UK business market too and as of 2020, Black-owned businesses on average created 5.4 more job roles for every startup that successfully launched. It’s also key to introduce innovative products and services that are specifically designed to enhance and even disrupt established sectors such as tech, cosmetics and even the food industry, bringing a fresh perspective to traditional industries.
Having a representative team is also a vital paart of revitalising the UK business scene. According to data from the Black Report, 48% of Black-owned businesses have female founders, 5% identify themselves as having a disability and 9% of employees and founders identify as LGBTQIA+.
Actively working in an inclusive environment is one of the key parts of running a successful business and according to the report, Black-owned businesses have a 77% success rate of generating revenue. It’s also worth noting that 66% of founders who were included in the survey by Google for startups studied non-STEM degrees, indicating that businesses can be successful without traditional degrees behind them.
It’s vital that more people have representation in all types of businesses in the UK to help shape the future of industries and having a more diverse workforce is a great way to reshape a stale working landscape.
According to the survey conducted by the Black report with Google for startups, the top 5 types of Black-owned businesses are:
18.3% eCommerce and retail
6.67% publishing and software
Having the fresh perspective and entrepreneurial spirit within these traditional sectors is just what the business landscape in the UK needs, but without the financial means, it can prove more difficult to get a business off the ground.
When it comes to funding businesses, a huge 88% of all Black-owned startups surveyed said they had self-funded their business idea without a business loan or even help from family and friends which is a huge amount of people raising their own capital.
One of the biggest stumbling blocks for businesses in the UK is a lack of access to financial support, with stats from the report stating Black-owned businesses are 4x less likely to apply for funding such as overdrafts, loans or business credit cards to help fund their business initially.
Having to self-fund a business shouldn’t have to hold back a great idea so if you’re confident your business can go the distance, it’s worth doing some research into the grants, loans or other funding you might be entitled to.
If you’re looking to start your own business journey and want to find out if you’re eligible for a business loan, start your journey with us today.Get in touch today
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