by NADEEM BADSHAH
MINORITIES 'EXCEL AT CREATING THEIR OWN BUSINESSES'
ETHNIC MINORITIES are twice as likely as white Britons to launch their own business to continue a family tradition and avoid suffering discrimination from employers, research claims.
The proportion of men and women from immigrant backgrounds starting a firm since the 2008 financial crisis has risen “markedly”, while there has only been a smaller increase among white people.
Successful entrepreneurs believe the trend is down to seeing their parents work hard in factories before running their own companies after arriving in the UK from South Asia, and having a greater work ethic and motivation.
Paul Uppal, the UK’s small business commissioner who previously ran a construction company, told Eastern Eye: “From a personal experience, people from ethnic and minority backgrounds tend to come from a culture where they see people – family, friends, acquaintances – going into and running their own business.
“This gives them exposure to role models and more of a perspective in how difficult it can be to run a business. In my role as commissioner I try to mentor new and small businesses, sharing my experience and advice as much as possible with people from all backgrounds.
“If more people from ethnic and minority backgrounds can pursue their dreams and share their experiences with the wider community, it can only be a win-win for everyone involved.”
The research by Aston University in Birmingham attempted to measure “total early-stage entrepreneurial activity”, those in the first three months of setting up a firm and people already running a business that is up to three-and-a-half years old.
Last year the activity rate for ethnic minority Britons was 14.5 per cent, compared with 7.9 per cent for white Britons.
And among immigrants to the UK, 12.9 per cent were early-stage entrepreneurs compared with 8.2 per cent among the British-born population.
Dr Rami Ranger CBE, who runs the Sun Mark brand in London, told Eastern Eye: “They say when employers do not look after their staff, their staff work for the competition.
“Sadly, even the competition does not look after their ethnic staff as they should. The result is the staff prefer to work for themselves to control their destinies.
"Additionally, migrants are less likely to find suitable jobs than their white counterparts. Had they been treated as equals, they may not have opted for running their own businesses as they do today.”
Dr Ranger added: “Besides, immigrants are more ambitious than the rest as many come from humble backgrounds and like to realise their potential by going their own way.
“They are also risk takers as many start from nothing and have little or nothing to lose if unsuccessful. Immigrants’ families also play an important role as they tend to help their family members more to succeed due to cultural values.”
Sukhi Wahiwala is an award-winning entrepreneur and business mentor who delivered a TED talk at Aston University on time management.
He said: “As a generation, as a community, as people, as an Indian culture, it is built around some kind of entrepreneurship where everybody is always looking to assist themselves further financially because there is no financial assistance.
“It is natural for a lot of individuals from an Asian background to see the best way to be in control of their own future in life is to take charge of it, look at the multiples of leveraging themselves and have other employees to grow the business.
“It is so much easier to start a business, even setting up a limited company is done online today.”
Wahiwala added: “I went to college so I could come back and run a business at the same time. I took over one of my family businesses in 1990, and in 1991 I turned a loss-making company into a profit-making one.”
“My college friends were much more focused on social activities, going out or what happened in the latest TV series they were watching. I had no understanding of that at all, I just knew how to buy and sell, how to buy the cheapest stock, how to ensure I’ve got the next customer.
“I used to go into college, finish my lessons and do my homework there and then. Then I would come back to the business and run it like normal, I would go and buy stock and help customers.”
