Working with minority and immigrant SMEs in the South West of England About CEMVO - purpose and objectives CEMVO is an infrastructure organisation – an.

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 is a charity and a business.

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 seeks to ensure that all people have equal opportunity in the UK and works to establish facilities to make equal opportunity a reality.

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

Background history – early UK immigration

Before 1950 After 19501950-1971 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

400-550 Saxons, Angles & Jutes800-1050 Scandinavian Vikings1066-1090 Normans, French, Jews1560-1700 Some black slaves1700-1770 14,000 Black Africans1830-1860 Irish immigration1870-1920 Jewish immigration1914-1945 Soldiers & sailors from

British colonies settled1946-1949 157,000 Polish

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.

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

Population Size7.9% from a minority ethnic groups

Regional Distribution3.6% of minority ethnic people

live in SW England

2001 – the last national census

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%.

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.

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

2001 – the last national census

EducationGCSE pass statistics at age 16Between 1997 and 2001 all groups except the Pakistanis & Bangladeshis had improved standards slightly – averaging 4% better

Sources of IncomeEarnings, pensions and

benefits

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.

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

BRISTOL51,000 > 102,000

Gloucester10,000 > 24,000

Swindon9,000 > 16,000

Bath4,500 > 7,500Taunton

3,000 > 7,000Yeovil4,000 > 9,000

Bournemouth3,000 > 5,000

Plymouth8,000 > 20,000

Exeter4,500 > 9,000

Centres of minority communities in SW England - growth 2001 to2009 (estimated)

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)

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.

1976 – government toughens the Race Relations Act and established the Commission for Racial Equality, the statutory body charged with tackling racial discrimination.

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.

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.

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

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.

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

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.

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.

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.

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.

Education is always the 'key'.

Quality support services, well financed and well marketed to the minority communities will support minority business success.

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.