Ethnic Minority Business Policy in the Era of the Small Business Service

The advent of the Small Business Service (SBS) has been accompanied by a renewed interest in ethnic minority enterprise. The content, nature, and efficacy of engagement processes with ethnic minority business (EMB) are likely to be important criteria for the granting of local SBS franchises, if the support needs of EMBs are to be successfully identified and responded to in the light of community and socioeconomic differences. This imperative has thrown into sharp relief unarticulated assumptions upon which policy towards EMBs has been, or should be, constituted. A review of these policy questions, and an assessment of the way forward, is long overdue. This is the key aim of the paper. In addressing this task, the authors draw upon a range of recent and ongoing studies of different facets of EMB activity, focusing in particular on the policy dimension. The discussion is divided into three main sections. First, there is an assessment of the support needs of EMBs. A key question is the extent to which such businesses are distinct from the general small firm population; and whether differences can be attributed to other factors, such as size and sector. This issue has implications for the delivery of business services; in particular, should services be delivered within existing ‘mainstream’ business support institutions, or through agencies predicated upon notions of ethnic differentiation? Second, issues and lessons from previous policy initiatives are considered. In particular, the role of specialist agencies, urban regeneration initiatives, and business-led organisations are assessed. After considering issues emerging from extant studies, part three identifies elements for a more coherent policy towards EMBs. Such a policy should include: clearer objectives; placing support EMBs within mainstream provision; an engagement strategy; closer integration between business support and regeneration policies; better access to finance; and more client-focused business support.