Birmingham ethnic minority businesses have been ‘hindered’ at a time when small businesses need to flourish. This is according to the director of an entrepreneur research centre who believes more should be done to support ethnic led businesses in the West Midlands.

The Labour Party as a result plan to boost Black, Asian and ethnic minority-led small and medium-sized businesses (SMEs). They claim the growth of business have stagnated over the last decade, reasons including a lack of funding for ethnic minority-led businesses.

This prompted Labour MP Anneliese Dodds to visit entrepreneurs in Birmingham on Friday (April 12). The Oxford East MP, also Shadow Secretary of State for Women and Equalities, held a round table with Black, Asian and ethnic minority business owners at Centre for Research in Ethnic Minority Entrepreneurship (CREME).

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As local business owners shared their concerns, Director of CREME Monder Ram, said: “The growth potential of the UK’s dynamic Black and ethnic minority entrepreneurs is being hindered at a time when the country needs all its small firms to flourish.

“Our research shows the already impressive contribution of ethnic minority business owners could rise from current £25 billion a year to £100 billion with right support. We need to redouble our efforts to unlock the entrepreneurial talents of our communities.”

Dodds revealed Labour’s plans to unlock investment for ethnic minority SMEs. Initiatives involve scrapping business rates and replacing them with a new system of business taxation to create a level playing field.

They also propose reforming the British Business Bank to support investment for companies founded by Black, Asian and ethnic minority entrepreneurs. Labour research claims there has been no growth in the proportion of Black, Asian and ethnic minority-led small businesses in the past decade.

The party claim five percent of small businesses without employees were Black, Asian and ethnic minority-led in 2012, compared to four percent in 2022, the most recent year with figures available. For small businesses with employees, seven percent were Black, Asian and ethnic minority-led in 2012, whilst in 2022 it was six percent.

This is despite Black, Asian and ethnic minority people making up 18.3 percent of the UK population. Aside from a lack of investment, last year the Treasury Select Committee reported that less than two percent of venture funding went to Black, Asian and ethnic minority owned businesses in 2019.

Anneliese Dodds said: “All across the country I see small businesses bristling with talent, innovation and creativity. But they are being held back by the Conservatives who have delivered economic chaos and no plan to support these businesses.

“Black, Asian and ethnic minority entrepreneurs have so much to offer our economy, but are being denied a seat at the table. We simply can’t afford to leave this untapped growth on the table.

“Labour will make Britain a place where businesses can flourish and anyone can succeed, no matter their background.”

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