Understanding business resilience among under-represented groups in London
Published: 12 December 2018
Supported by the JPMorgan Chase Foundation this report highlights the preliminary findings from a new survey of business adversity and resilience in 600 small businesses located in six London boroughs, three low-income and three middle-income. The study aims to identify the characteristics and strategies that foster resilience survival and growth in SMEs, and to develop practical toolkits to support under-represented entrepreneurs in their efforts to develop more resilient businesses. Four key findings emerge:
• Male and female-led businesses were equally likely to have experienced an existential threat to the survival of their business in the past five years. However, male business owners judged the potential for future threats to be less significant than their female counterparts.
• Ethnic-led businesses were significantly more likely than non-ethnic led businesses to have experienced a threat to the survival of their business. This effect was more evident for younger ethnic businesses and those located in low-income boroughs.
• Ethnic-minority business owners also judged the potential for future threats to be greater than their non-ethnic counterparts. Key issues included increased competition from new and existing sources, cost rises, problems with premises and changes in regulation or legislation.
• Psychological measures of personal resilience on average vary little between male and female business leaders and those from ethnic and non-ethnic groups. There is more significant variation within each group.
Wishart, Maria, Roper, Stephen, Hart, Mark
Some groups of individuals are more likely than others to struggle to find paid employment because they experience systemic disadvantage of some kind. These groups include migrants, people who identify as having a disability, and those with low educational attainment. The entrepreneurship route – essentially becoming self-employed or starting their own businesses - is often suggested as a way into work for these people. However, fewer individuals from these groups engage in entrepreneurial activity of this kind, and those that do succeed in starting their own businesses experience lower turnover and higher failure rates than their mainstream counterparts. These groups of individuals are thus under-represented in entrepreneurship, and this paper reviews published research from both academic and non-academic sources that investigates why this might be.
Published: 5 July 2018
Published: 1 June 2013
Enterprise Research Centre
Warwick Business School
University of Warwick
Coventry CV4 7AL
Enterprise Research Centre
Aston Business School
Birmingham B4 7ET
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