Alone together:
Entrepreneurship and diversity in the UK
| There are persistent disparities in outcomes for business | Female entrepreneurs from ethnic |
| owners from ethnic minority backgrounds | minority backgrounds experience |
| the biggest disparities |
Location is an important factor in success,
irrespective of ethnicity and gender
Money plays a vital role –
those who are poorer
experience less success
38%
of Asian and Other
Ethnic Minority
business owners and
28% of Black business
owners report making
no profit vs 16% of
White business owners
Black business owners report
£25k median
turnover
vs £35k for White business owners
and £40k for Asian and Other Ethnic
Minority business owners
£35k
£25k
£40k
£ £ £ £ £
Disparities explained by:
• Access to finance
• Education
• Deprivation
• Under-representation in senior roles
• Systemic disadvantage
49%
of Black entrepreneurs
say they met their nonfinancial aims vs 53% of
Asian and Other Ethnic
Minority entrepreneurs
and 69% of White
entrepreneurs
Over 1/3
of Black, and Asian
and Other Ethnic
minority female
business owners
report making no
profit last year,
vs 15% of White
female business
owners
Irrespective of ethnicity,
female business owners
experience significantly
lower median turnover
than male business
owners
Female
£15k
Male
£45k
Even after accounting
for caring roles and
part-time work,
substantial disparities
persist for female
entrepreneurs
Only 71%
of London business
owners reported a
profit in 2019 – the
lowest in the UK
20%
of business owners in
London saw a decline
in revenue last year vs
UK average of 14%
South East
based entrepreneurs
see the most success with
a median turnover of
£35k
12x
Business owners with household
income of £75k+ have a median
turnover 12 times that of those
with an income of under £20k
49%
of Asian and Other Ethnic
Minority entrepreneurs cite
‘difficulties getting finance’ as
the reason for stopping work on
their business idea
Entrepreneurs includes Aspiring Entrepreneurs and Business Owners. Aspiring Entrepreneurs are currently developing an idea that has business potential, or previously did so in the last five years. Business Owners are self-employed or running a business that they
started themselves in the past ten years, or previously did so in the last five years.