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Black Entrepreneurs Have Every Right Not To Trust Financial Institutions, But Does This Really Benefit Us?

Black Britons are one of the fastest growing communities of entrepreneurs, yet only 40% of Black business owners trust banks to have their best interests in mind, compared to 43% from last year.

This figure probably doesn’t come as a shock to those that already exist in this space and community, but as we read through the findings from this year’s Black Business Network’s ‘Black. British, In Business and Proud’ report, in partnership with Lloyds Bank, what is surprising is the long-term impact this breakdown in trust is having on Black businesses. 

The research, which surveyed and interviewed over 1,000 entrepreneurs of varying stages, ages and regions, also found that on average Black entrepreneurs were fundraising within the community and the median amount they took to set up their business was just £2,000; a nominal amount when trying to build a business.

Using this limited amount to start a business creates restrictions when it comes to the strategy and pace of growth, leading to dramatic differences between the turnover of Black businesses and the UK average. For example, six in ten (61%) Black solo entrepreneurs had an annual turnover of less than £20,000.