There is a £20 billion economic growth opportunity being overlooked - and in these uncertain and volatile economic times, that is a prospect the UK simply cannot afford to miss.
Research by Coutts Bank estimates that Black and ethnic British owned businesses could contribute up to £75 billion more to the UK economy if barriers were addressed, money that could be contributing to the growth we all know is so vital to our prosperity and to funding public services.
In response, this week the Black British Initiative (BBI) launched at the House of Commons the Unlock Britain campaign.
This is aimed at boosting the revenues of the black British business community by £20 billion as a first step towards the ultimate goal of converting that potential into reality.
I know through my own experience just how hard it can be for black entrepreneurs to secure that funding lifeblood that can propel their businesses to the next stage of their development.
I started my first business from scratch with my brother when I was 22. We supplied linen to restaurants and managed to achieve a comfortable six figure turnover.
When we made our breakthrough and needed to expand we went to a high street bank and asked for £50,000 to buy industrial equipment. We had about £300,000 going through the bank and knew, we were a good bet.
But the bank just could not bring itself to say yes, so we did not get the funding. Fortunately it was not the end of the world and we were able to sell the business.
But that was one of the formative experiences that set me on the trajectory that led to launch the campaign this week.
Today more than 200,000 black owned businesses operate across the UK, contributing to local economies in every region of the country.
But something is holding them back. They are not progressing as quickly or reaching the scale of those in the mainstream business community.
The median turnover of a black-owned business is just £25,000 a year compared with more than £548,000 across all UK micro businesses.
That is an enormous gap that the country cannot afford to leave unbridged.
At the heart of the campaign is Project £100K – BBI's ambition to lift the average turnover of black-owned businesses by £100,000 by 2030, raising it from £25,000 to £125,000 and creating the foundations for the next generation of high-growth British businesses.
The maths is simple but compelling. If all 200,000 black owned business can add £100,000 to their top line, the nation benefits to the tune of £20 billion.
The challenge is not a lack of ambition. Far from it. It is far more to do with that crucial access to the executive education, networks, capital and opportunities that propel growing businesses.
We have already seen what can be achieved through MBA 30, an SOAS accredited executive education programme for Black entrepreneurs.
Since its launch by BBI in 2023 to mark the 30th anniversary of Stephen Lawrence’s death, MBA 30 has supported more than 290 founders through 14 cohorts, equipping business owners with practical skills in financial modelling, governance, growth strategy and investor readiness.
The campaign's immediate ambition is to build a coalition capable of expanding MBA 30 graduates from 290 entrepreneurs today to 2,000 by 2028 and 4,000 by 2030, helping create a new generation of Black owned growth businesses across Britain.
BBI's analysis shows that every £1 invested in the programme generates more than £13 in economic value. We have already seen tangible results from the experience of the first cohorts to complete this four week “mini-MBA”.
Since completing the programme Tendai Moyo, founder and CEO, of hair extensions company RUKA Hair has raised more than $1 million, secured investment from Henkel, is retailed in Selfridges and has now expanded into Sephora US.
Similarly since completing the programme David Adjei, founder and CEO, of proptech company AICHITECT has raised £300,000, created five jobs, launched a commercial product and secured contracts with organisations including the NHS and Notting Hill Genesis.
Today, AICHITECT is recognised as an award-winning GovTech and property technology platform.
Those are great and inspiring stories. But we need more help from the Government too.
The course is relatively affordable at £3,250 but still accounts for 3% of a £100,000 turnover company’s annual revenue.
With the support of the Government’s Help to Grow scheme the cost could be reduced, democratizing access to education.
I also think the banks’ attitude to credit rating needs to change. I remember talking with one major bank about the importance of learning the lessons from failure, and the need to embrace failure.
But when I asked them ‘are you going to lend to someone whose credit file has been impacted by failure? They said ‘no, of course not.’ So that is not embracing failure.
These are a couple of examples of different things that can help. But I think education, wider access to funding, and mentors are all crucial.
Around 85% of the participants in the MBA 30 programme are the first in their family and friendship groups to start a business. They have not had the opportunity to learn about business by osmosis - across the breakfast table, the dinner table, following mum and dad into work.
They are pioneers. And what the research shows is that while black businesses are slightly ahead of the average after year one, after that they start to plateau and then drop away.
We need to break that cycle, through knowledge and the funding that takes a good idea and makes it a great idea. Then we can unlock that £20 billion that is there for the taking and unleash the huge potential of Britain’s supremely talented black business community.
Darren Miller is founder and CEO of Black Business Initiative
