EMPOWER: Personal finance decision making & Ethnic minority-led businesses. Initial report

Abstract

Ethnic minority entrepreneurs make important contributions to the UK economy and local communities through the businesses they run. However, their journeys into entrepreneurship are often shaped by a mix of personal motivation, cultural background, and the challenges they face in the wider business environment. This research is based on interviews with business owners from a range of ethnic backgrounds, focusing on why they started their businesses, how they make financial decisions, and what support they have or lack. Many of these entrepreneurs rely on family and community networks to keep their businesses going, especially when formal support is hard to access. Cultural and religious beliefs also play a big role in shaping how they do business. At the same time, participants spoke about facing barriers like difficulties getting funding, feeling excluded from mainstream business networks, and dealing with the ongoing effects of the COVID-19 pandemic and the cost-of-living crisis. This study shares their experiences and highlights areas where better support, more inclusive policies, and practical help could make a difference. In this report we have outlined some emerging themes from our in depth semi-structured interviews with ethnic minority entrepreneurs.