Government Response to Ethnic Minority Business and Women’s Enterprise Task Force Recommendations

The actions follow recommendations by the Ethnic Minority Business Task Force and the Women’s Enterprise Taskforce.

Confidence, in particular, was outlined as a critical issue in changing the mindset of potential women and ethnic minority entrepreneurs to establish and grow their business.

The new measures focus on further developing support in critical areas such as business support, access to finance, procurement opportunities, advocacy and data.  They include:

·   Supporting and catalyzing female entrepreneurship across the country through the establishment of:

­        a Women’s Enterprise Champion in each of the regions to encourage more women to start their own enterprises and to advise Ministers

­        a new industry-led Women’s Enterprise Forum to increase GVA growth through women entrepreneurs

·  A new Ethnic Minority Business Advocacy Network, which will be led by the Regional Development Agencies, to provide a single strategic voice on ethnic minority businesses across the UK

·   A commitment between major high street banks to continue to improve the routes to business finance for women and ethnic-minority entrepreneurs

·   Increasing the data available on women’s and ethnic minority enterprises to provide evidence for advocacy and policy

SMEs represent 99.9% of Britain’s business community with ethnic minority SMEs making up around 7 per cent and contributing an estimated £20 billion to the UK economy per year. Women-led SMEs represent 15%, contributing £45 billion to GVA per year. However, if women started businesses at the same rate as men there would be an extra 150,000 business created.

Business Secretary Lord Mandelson said:

“Broadening participation in enterprise is vital to tackling the economic and social challenges the UK faces today. For Britain to emerge from the downturn in the strongest position, we need all of our talented people to maximise their business potential.

“We are committed to ensuring that those under-represented in business are given every opportunity to turn their ideas and aspirations into successful enterprises.”

James Caan, Co-Chair of the Ethnic Minority Business Task Force said:

 “Great businesses can start with the single idea of a potential entrepreneur. Ensuring the voices of all entrepreneurs are heard is vital – whether that is raising views with government or talking to business mentors for advice and inspiration. Both are key to growing a successful business."

Women's Enterprise Task Force co-Chairs Pam Alexander and Glenda Stone said:

"We welcome the Government's endorsement of our analysis and work. The Women's Enterprise Task Force believes that a number of clear and urgent actions are required in the UK to monitor and drive growth in women's enterprise. Such actions would leverage greater contributions to the economy and assist the UK to be far more competitive on the global stage.”

The RDAs will play a key role in bringing the recommendations to life.

Bryan Jackson, Chairman of East Midlands Development (emda) said:

“Small businesses are the backbone of our economy and the case for boosting the levels of enterprise from women and ethnic minority businesses is clear. This is why, as a family, the Regional Development Agencies have come together and pooled resources to increase the diversity of our business base.

"I am also very aware of the pressures and pitfalls, highs and lows, of creating a successful business. As the lead Regional Development Agency for Enterprise, we at emda are delighted to be at the forefront of policy making on this agenda, to help deliver the support that these budding entrepreneurs require."

For more information please contact Fiona Cameron in the BIS Press office on 020 7215 5978, fiona.cameron@bis.gsi.gov.uk