Minority Ethnic Enterprise in Scotland

Abstract

This paper constitutes the first systematic national study on Minority Ethnic Businesses (MEBs) in Scotland. The study used a combination of research methods including secondary data from the 2001 Census, data on self-employment rates, quantitative analysis of the baseline dataset, 41 in-depth qualitative interviews and a further 32 interviews with key informants. The in-depth interviews revealed great contrasts between the experience of MEB-owners in different locations, sectors and markets. MEB-owners in declining sectors and markets have adopted coping strategies that draw upon innovation in service and product provision and in adding value; there is also evidence of successful diversification and breaking into new markets. The interviews also indicate additional issues of diversification, crime, security, insurance and racism. We suggest that diversity can be seen as a source of creativity and innovation, and that policies be developed to help promote diversification. A key issue for policy-makers is the development of initiatives that improve communication and engagement with MEBs, and provide incentives such as targeted procurement policies. There is also a need to develop links with community leaders or with organisations that represent MEB-owners.

Keywords:

• Minority Ethnic Business
• Diversity
• Innovation
• Finance
• Support
• Scotland

Notes

1. Calculated against all those deemed to be economically active.

2. UK rates of self-employment are highest for Pakistanis at 22 per cent and Chinese at 19 per cent.

3. Enterprises registered with UK Customs and Excise for value-added taxation purposes. Those with a turnover below a minimum threshold level (£50,000) are not required to register, but can do so voluntarily.

4. Informal sources are non-institutional, such as private investors, family and friends.

5. Respondents were not asked to distinguish whether the funding sought was short- or medium-term.

6. Scottish Enterprise is the development agency for the whole of Scotland outwith the Highlands and Islands. The 12 Local Enterprise Companies (LECs) are one of the main ways to access the range of services provided by Scottish Enterprise and its partners. Business Gateway is a partnership with Scottish Executive and Local Authorities, and brings together a range of key services delivering a one-stop shop for business start-up and growth. These services are provided by Highlands and Islands Enterprises in the Highlands and Islands of Scotland.

Additional information

Notes on contributors

David Deakins

David Deakins holds a Chair in Enterprise Development and is Director of Dumfries Campus at the University of the West of Scotland

David Smallbone

David Smallbone is Professor of Small Business and Entrepreneurship and Associate Director of the Small Business Research Centre at Kingston University

Mohammed Ishaq

Mohammed Ishaq is Lecturer in Business and Management at the University of the West of Scotland

Geoffrey Whittam

Geoffrey Whittam is respectively Senior Lecturer and Lecturer in Entrepreneurship at the Paisley Enterprise Research Centre

Janette Wyper

Janette Wyper is respectively Senior Lecturer and Lecturer in Entrepreneurship at the Paisley Enterprise Research Centre