Bangladeshi-origin entrepreneurs are leading the over 11,000 ethnic minority people to access the UK government backed Start-Up Loans over the past five years, according to new research published in London today.
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.
According to the data, 15 percent of workers in the UK fall under the self-employed category, with Bangladeshi and Pakistani workers most likely to be self-employed.
“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,” said UK Business Minister Richard Harrington.
“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,” he said.
Since the government’s start-up 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, with one in five of the loans going to ethnic minority recipients.
The research highlights how the government is working to create a strong entrepreneurial business environment and a fairer society, the UK’s Department for Business, Energy and Industrial Strategy said.
The data shows that from 2013 to 2017, ethnic minority entrepreneurs received start-up loans at a higher rate. Last year, 5.7 minority ethnic entrepreneurs per 10,000 people received a start-up loan, compared with 2.4 white entrepreneurs per 10,000 people.
Sandra Kerr, race equality director, Business in the Community, said: “BAME [black and minority ethnic] 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.”
The World Bank ranks the UK as one of the best places in the world to start and grow a business, with 1,100 businesses starting every day in Britain – or one every 75 seconds.