Working with minority and immigrant SMEs in the South West of England

2. Working with minority and immigrant SMEs in the South West of England About CEMVO - purpose and objectives CEMVO is an infrastructure organisation – an organisation that supports and develops NGOs, voluntary organisations and businesses that deliver services directly to minority ethnic communities. CEMVO provides a voice for the minorities, liaising with national and regional government and agencies, providing a connection with 'front line' organisations. CEMVO formulates policy, conducts research and analysis, supplies training and consultancy. CEMVO is a charity and a business. CEMVO seeks to ensure that all people have equal opportunity in the UK and works to establish facilities to make equal opportunity a reality.

3. Working with minority and immigrant SMEs in the South West of England Background history – early UK immigration Before 1950 After 1950 400-550 Saxons, Angles & Jutes 800-1050 Scandinavian Vikings 1066-1090 Normans, French, Jews 1560-1700 Some black slaves 1700-1770 14,000 Black Africans 1830-1860 Irish immigration 1870-1920 Jewish immigration 1914-1945 Soldiers & sailors from British colonies settled 1946-1949 157,000 Polish 1950-1971 Workers from Caribbean and South Asia arrive. 1970 Non-white immigrants number 1.3million. 1972-1979 Economic immigrants and Asylum seekers arrive from the Commonwealth countries. 1980-1986 Economic immigrants from US, Australia, New Zealand & S. Africa. Professionals from S. Asia & Middle East 1987-2002 125,000 per year enter the UK as asylum seekers or to work

4. Working with minority and immigrant SMEs in the South West of England HISTORY – early UK immigration The patterns of growth and dispersal can be seen through the: UK National Census - www.statistics.gov.uk Run every 10 years it provides valuable information about immigration and the consequences. The last Census was 2001. The next is 2011. But in 2009 the situation is very different to 2001.

5. Working with minority and immigrant SMEs in the South West of England 2001 – the last national census Population Size 7.9% from a minority ethnic groups From 1991 to 2001 the minority ethnic population of the UK grew from 3 million to 4.6 million (54%). The rise in the SW was from 78,000 to 167,000 – a rise of 114%. Regional Distribution 3.6% of minority ethnic people live in SW England

6. Working with minority and immigrant SMEs in the South West of England 2001 > 2009 Today the size of the minority communities is estimated to be: Around 8 million – 13.3% of the UK population This does not include an estimated 1.2 million people in the UK illegally The 2011 census is expected to reveal statistics very similar to 2001 for education but with the UK economy in recession it is likely business and work statistics will be worse. The growth communities between 2001-2009 have been the Somalis and eastern Europeans – mainly Poles, Czechs, Russians.

7. Working with minority and immigrant SMEs in the South West of England 2001 – the last national census Education GCSE pass statistics at age 16 Between 1997 and 2001 all groups except the Pakistanis & Bangladeshis had improved standards slightly – averaging 4% better Statistics for the SW showed average educational achievement to be 1.2% lower than the national average and for self employment 2.2% higher than the national average. Sources of Income Earnings, pensions and benefits

8. Working with minority and immigrant SMEs in the South West of England Centres of minority communities in SW England - growth 2001 to 2009 (estimated) Gloucester 10,000 > 24,000 Swindon 9,000 > 16,000 BRISTOL 51,000 > 102,000 Bath 4,500 > 7,500 Taunton 3,000 > 7,000 Yeovil 4,000 > 9,000 Exeter 4,500 > 9,000 Bournemouth 3,000 > 5,000 Plymouth 8,000 > 20,000

9. Working with minority and immigrant SMEs in the South West of England 1st generation problems and UK response Early government policies to handling immigration 1960s – white riots against immigration of non-white minorities. Minorities suffer violent racism from whites and discrimination everywhere Government legislates 3 times (to 1972) to restrict immigration of non-white people. 1965 introduced Race Relations Act to protect minorities (updated 1968) 1976 – government toughens the Race Relations Act and established the Commission for Racial Equality, the statutory body charged with tackling racial discrimination. 1970s – racism and discrimination continue. Emergence of the National Front. Minority businesses attacked and burned. 1980s – 1980 > 1982 saw 'Race Riots' as non-white minorities protested about their treatment from whites and the police. Scarman Report found that "racial disadvantage is a fact of current British life". Government starts to support NGOs to help minorities in UK. 1990s – emergence of BNP from ashes of National Front. First minority MPs elected to Parliament. Race Relations Act updated 1992 & 2000. Government starts monitoring and reporting discrimination.

10. Working with minority and immigrant SMEs in the South West of England Failure to tackle discrimination has meant that for most minority people having their own business has become the preferred way of developing an income and personal/family security. This is most likely if: - Living in an area of high work place discrimination. - They have a below average education and so fail to find employment. - They come from families that have a history of running their own businesses. - Parents have not encouraged them to do well at school and go to university. - They are prone to peer group pressure. - They feel this is their best way to become wealthy. - They lack confidence to try and succeed as employees in high paid positions.

11. Working with minority communities and immigrants in the South West of England Origins of minority ethnic businesses Most minorities came to the UK to work in industry and manufacturing companies, not to setup their own businesses. Most took very low paid factory jobs and found their treatment to be very bad. Very quickly they looked to find an alternative in a self employed capacity. Early businesses included: - Restaurants - Fishmongers - Take aways - Market traders - Taxi driving - Money transfer - Taxi companies - Travel agents - Newsagents - Clothing manufacture - General grocers - Publishing - Butchers - Processed food manufacture

12. Working with minority communities and immigrants in the South West of England Minority ethnic businesses in the SW today New first generation immigrants still focus on the same types of businesses as those that came before them. But educated second and third generation people will initially work in companies as employees for job security but if they have negative experiences will set up their own companies in some of these sectors: - Accountants - Finance - Solicitors - Insurance - Media - Entertainments or those that are used by the first generation. The businesses of 2nd and 3rd generation people tend to be more successful.

13. Working with minority communities and immigrants in the South West of England Minority SME - Obstacles to success - Language barriers in conducting business - Understanding 'jargon' and 'business terminology' - Access to safe banking, finance and loans - Lack of short term funding. - Borrowing from inappropriate sources - Finding suitable premises and locations - Non awareness and understanding of laws, rules, governance, regulations and procedures - Not accessing start up capital - Lack of access to business networks - Lack of quality support agencies to help - Knowing where to go for professional support - Lack of appreciation for the need of professional support - Poor money management and book-keeping - Lack of IT skills and systems knowledge - Inability to plan, forecast and follow a business plan - Lack of marketing (understanding, ability, awareness) - Unaware of skills gap in own business - Lack of diversity in business models - Poor management and leadership skills - Staff retention – bad man management

14. Working with minority communities and immigrants in the South West of England Successes in the South West Eurofoods – established in 1991 distributes foods to restaurants, takeaways and supermarkets. Now employs 223 people. Brunel Associates – established 1984 Brunel is a letting business offering a wide range of associated services, employing 33.

15. Working with minority communities and immigrants in the South West of England SME failures in the South West 88% of minority businesses fail within 2 years unless they are restaurants, takeaways or social enterprises. 11% of minority restaurants and takeaways fail within 2 years. 21% of minority social enterprises fail within 2 years. 34% of minority charities fail within 2 years.

16. Working with minority communities and immigrants in the South West of England Type of support available for minority SMEs Start up funding for social enterprises from government and independent trusts. Start up and ongoing business advice and support from organisations like CEMVO, Business Link (www.gwebusinesswest.co.uk), Social Enterprise Works (www. socialenterpriseworks.org) Free or discounted specialist legal services like Avon & Bristol Law Centre (www.avonandbristollawcentre.org.uk) Commissioned contracts for services from national, regional and local government.

17. Working with minority communities and immigrants in the South West of England Managing change The importance of good quality consultation between all stakeholders. The Art of Good Consultation – Rhion Jones & Elizabeth Gammell – Biteback Publishing A realisation that 'policy' doesn't bring success – minorities must learn the skills needed to be successful in new environments. Educate the indigenous population about the 'benefits' of immigrant populations and not to assume all from one community are the same, negative and/or will change the indigenous culture. They will be better inclined to use minority businesses and ensure their success. Quality support services, well financed and well marketed to the minority communities will support minority business success. Education is always the 'key'.

18. Working with minority communities and immigrants in the South West of England Conclusion In SW England minority businesses are becoming more successful but remain dependent mostly on the minorities for trade, which limits their growth and potential. • Making minority businesses and entrepreneurs aware of: • Good support facilities and organisations • The skills needed for business success • Access to safe and reliable finance remain a priority in the UK In depth understanding of the minorities and the ability to develop support in consideration of that understanding will ensure a better chance of helping them succeed in business.