The year 2023 is quickly approaching, and with it comes the looming prospect of a recession. For black business owners, this could mean that the progress made in recent years may be hampered or even reversed. As such, it’s important for black business owners to understand what this could mean for their businesses and how they can prepare for it.
What Does Recession Mean for Black Businesses?
Preparing Your Business for the 2023 Recession
How will a recession in 2023 impact black businesses?
How Many Black Owned Businesses Are There In The UK?
The United Kingdom is home to many different types of businesses, including a growing number of black owned businesses. But how many are there, and where are they located? In this blog post, we’ll take a look at the rise of black owned businesses in the UK and explore their impact on the economy.
The Rise of Black Owned Businesses in the UK
Black owned businesses have been on the rise in recent years in the UK. According to research by the Department for Business, Energy & Industrial Strategy (BEIS), there were nearly 400,000 black owned businesses as of 2019. This figure has increased by more than 50% since 2010—an impressive rate of growth compared to other business demographics.
These figures are encouraging, but it’s important to note that most black owned businesses are small operations with fewer than 10 employees. These small businesses play an important role in local communities, providing employment and creating goods and services for local people. They also contribute significantly to the UK economy as a whole; research from BEIS suggests that black owned businesses account for about 5% of all private sector turnover in Britain.
What’s Driving Growth of Black Owned Businesses in the UK?
So what’s driving this growth? One factor is increased access to finance options; government initiatives such as Start Up Loans have made it easier for entrepreneurs from all backgrounds to get funding for their business ideas. Another factor is increased awareness among consumers; research shows that more people are now looking out for locally owned and operated business when making purchasing decisions.
Finally, there has been an increase in support programs specifically geared towards helping black entrepreneurs start up and grow their own business—such as Enterprise Nation’s #IAmTheFuture campaign which provides mentorship and advice for aspiring entrepreneurs from underrepresented backgrounds.
It’s clear that there has been a significant increase in the number of black-owned businesses in the UK over recent years—a trend which is likely to continue thanks to improved financial access, increasing consumer awareness, and dedicated support programs aimed at helping these entrepreneurs succeed. It’s inspiring to see so many individuals taking control of their financial destiny by starting their own business ventures—and having a positive impact on both local communities and the economy as a whole. Hopefully this trend continues into 2023 and beyond!
The Value of Black-Owned Businesses in the Black Community
Community Pride and Representation
Black-owned businesses also help build community pride by providing goods and services that cater specifically to people from similar backgrounds or offer products that reflect their culture and heritage. For example, a black owned restaurant might serve dishes inspired by traditional foods from the Caribbean or a hair salon might specialise in natural hairstyles popular among West Africans. These types of services give people from similar backgrounds an opportunity to connect with one another while also celebrating their culture and identity in meaningful ways.
The best way to create social change is through grassroots action —and supporting black-owned businesses is a great way to get involved in this type of advocacy. By investing your money into local businesses owned by people of color, you are sending a powerful message that you believe in their potential and value them as an integral part of our society. This kind of social empowerment can create ripple effects throughout entire communities, inspiring others to follow suit and invest in these businesses as well.
Job Creation in the Black Community
When small businesses succeed, they create jobs in their local communities —which is especially important when those communities have traditionally been left out or underserved by larger corporations or institutions. Investing in black-owned businesses helps ensure that more job opportunities are made available within these communities, helping residents find meaningful employment and giving them the opportunity to build financial stability and security for themselves and their families over time.
The Value of Black-Owned Businesses in the Black Community
The Benefits of Mentorship for Black Owned Businesses in the UK
In the UK, minority communities are underrepresented in the business world. According to research conducted by the Institute for Fiscal Studies, only one percent of all businesses in the UK are owned by people from black and ethnic minorities – meaning that black-owned businesses are at a distinct disadvantage when it comes to competing against larger enterprises and gaining access to resources they need.
Mentorship is an essential tool that can help empower these minority business owners and provide them with the guidance they need to succeed in their respective fields. Here are some of the benefits of mentorship for black-owned businesses:
Access to Insights – By having a mentor who has already been through the process of establishing a successful business, entrepreneurs can gain valuable insight into best practices and strategies as well as having someone to talk with and lean on during challenging times. Mentors can also provide advice on navigating difficult legal or financial challenges and offer constructive feedback on ideas being pursued before they’re put into action.
Supportive Networks – A good mentor will introduce you to other influential contacts within your industry, creating opportunities for collaboration, additional funding, or even job placements or internships in which you could benefit from their extensive knowledge base. Networking with peers brings unique challenges but mentors often provide invaluable advice on how to approach it effectively.
Improved Confidence – It’s not uncommon for owners of small business or startups to feel overwhelmed by fear or self-doubt; this type of anxiety becomes more pronounced when navigating an industry heavily dominated by white/male professionals which is why many feel like having someone offering support can be extremely reassuring during this period – giving reassurance that everything is progressing as expected and providing encouragement when needed!
Mentorship provides much needed guidance, resources, connections and confidence that aspiring entrepreneurs need when starting out – especially those belonging to minority groups who are often kept at a disadvantage due to historical discrimination. Finding a mentor who has gone through similar milestones can be incredibly beneficial in helping navigate any obstacles encountered along the way!
What does 2022 look like for black business in the UK?
The United Kingdom is home to a thriving black business community. In recent years, there has been a surge in the number of black-owned businesses in the UK, with many entrepreneurs taking advantage of the opportunities available to them. From fashion and beauty to food and drink, there are now more black-owned businesses than ever before.
In 2020, NatWest launched its Black Business Directory, which features over 100 UK-based black-owned businesses across a range of industries. This directory was created by George Oduro, Head of Commercial Partnerships at NatWest, as part of their commitment to supporting and promoting black entrepreneurship in the UK. The directory includes businesses such as Candour Beauty, Liha Beauty and SoulVisionary Jewellery – all of which have seen tremendous success since their launch.
Black business thrived during pandemic
The pandemic has had an impact on many small businesses in the UK but it has also provided an opportunity for some entrepreneurs to take advantage of new trends and technologies. For example, many black-owned businesses have embraced ecommerce platforms such as Shopify or WooCommerce to reach new customers online. This has enabled them to expand their customer base beyond their local area and tap into new markets around the world.
In addition to this, there are now several organisations dedicated to supporting black business owners in the UK. These include Black2Business UK – a definitive online source for all product and service providers from the African/Caribbean diaspora within the UK – and 5 Organisations Supporting Black Businesses in the UK – an initiative that provides resources and support for small business owners in need.
Finally, HSBC & UK Black Business Show recently released a list of 25 top black entrepreneurs to watch out for in 2022. This list includes Abubakar Salim MBE (founder of Afrocks), Andy Ayim MBE (founder of Nala’s Baby) and Andy Akinwolere (founder of Elephant & Bamboo). These entrepreneurs are leading the way when it comes to innovation and creativity within their respective industries – something that we should all be celebrating!
It’s clear that there is no shortage of inspiring stories coming out of the UK’s black business community right now – something that we should all be proud of! With more support from government initiatives such as NatWest’s Black Business Directory, we can only expect more success stories from these talented entrepreneurs in 2022 and beyond!