THE British Business Bank’s start-up loans programme is providing a funding boost to London-based entrepreneurs from Black, Asian and minority ethnic (BAME) backgrounds, new figures show.
Latest data from the government-backed programme show that it has issued 7,366 loans to start-up owners in London from BAME backgrounds, amounting to more than £50 million in funding.
This represents almost half of all start-up loans in London.
While two in five or 40 per cent Londoners identified as being from Asian, Black, mixed or other ethnic groups in the last census, almost half (48 per cent) of all the 15,423 start-up loans issued in the capital since 2012 went to people from BAME backgrounds.
Jacqueline Hall from Rainham in the London Borough of Havering is among the BAME Londoners who used a start-up loan to set up her company.
Having been made redundant and then being turned down from various job interviews, Hall decided to switch careers and pursue her dream of becoming a life coach.
Inspired by her love of people and listening to their problems, Hall used a £2,500 start-up loan to launch DALE Coaching, her own online mentoring company offering development and career coaching.
The business has since transformed to include family business leadership team facilitation and a consortium with other female entrepreneurs that hosts workshops and learning sets, and encourages women into STEM related careers.
Piers Linney, non-executive director of the British Business Bank and recognised as one of the top BAME business leaders in the UK, said: “Businesses led by people from Black, Asian and minority ethnic backgrounds make a huge contribution to London’s economy, so it’s great to see the start-up loans programme is making a real difference in supporting them to access the finance they need.
“When you look at the current makeup of UK business ownership, it’s clear there’s more that can be done to reflect the diversity of our society. We’d like to see more businesses being started by BAME entrepreneurs across the country but are proud that start-up loans scheme is playing its part in supporting BAME businesses at a national level and giving them the support they need to start and grow.”
The start-up loans programme provides fixed-interest loans of £500 to £25,000 to aspiring business owners from across the UK, many of whom might be struggling to access other forms of finance.
Since 2012, it has lent more than £542 million through 67,862 loans, of which 13,832 went to people from BAME backgrounds.
While census data shows 13 per cent of the UK population belong to a black, Asian, mixed or other ethnic group, government research reports that only five per cent of the UK’s small businesses are majority-led by someone from an ethnic minority group.
By delivering 20 per cent of its UK loans to BAME recipients, start-up loans programme is helping to address this imbalance.
An aerial view of the British Steel Scunthorpe site on September 13, 2024. (Photo: Getty Images)
