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Businesses: Ethnic Groups

Question for Department for Business, Energy and Industrial Strategy

UIN HL6334, tabled on 30 June 2020

To ask Her Majesty's Government what steps they plan to take following reports that many black-owned businesses struggle to find investors.

Answered on

14 July 2020

The Government’s access to finance schemes are open to all businesses and BAME-led businesses benefit from them. The Department’s ministerial team is actively engaging with the Black, Asian and Minority Ethnic (BAME) business community on a regular basis to cover multiple issues, including access to finance.

The Future Fund provides government co-investment to innovative businesses. As of 21 June, the Future Fund had approved 252 applications for investment worth £236 million. Companies with BAME only and mixed ethnicity management teams accounted for over 55% of these applications, valued at £118.5m.

The British Business Bank’s Start Up Loans programme had delivered more than 71,500 loans to entrepreneurs by the end of March 2020, providing more than £586 million of funding. Of these, 20 per cent of the total were to applicants from a BAME background, compared to approximately 15 per cent of the UK’s population who are from a BAME background (2011 census).