South West companies run by leaders from ethnic minority groups are being hit “particularly hard” by the coronavirus outbreak, new research has found.
The virus and social-distancing rules have exacerbated pre-existing socio-economic inequality in the region, according to the report by the Black South West Network (BSWN).
Cashflow and liquidity are the biggest problem for black and Asian business owners and the self-employed, the report said, with 90 per cent of those questioned by BSWN experiencing financial loss.
Some 83 per cent of voluntary and community organisations stated they were currently unable to deliver services, while 92 per cent expect community needs to increase due to Covid-19.
The report also found entrepreneurs and the self-employed from ethnic minority backgrounds were overrepresented in sectors hardest hit by the pandemic.
Sado Jirde, director at BSWN said: “Covid-19’s impact on loss of income is commonplace but it has hit family-run black, Asian and minority ethnic businesses particularly hard, rippling out into whole supply chains.
“Hardest hit sectors have more BAME staff, and whilst furloughing has helped big business, small business owners and self-employed BAME people are struggling to apply narrow national support criteria.
“As we emerge from the crisis, we must ensure that our economic response reaches everyone equally and equitably.”
The report also found the lack of access to funding and investment, information and equal opportunities that was “hindering” these organisations before the pandemic had been exacerbated by the virus outbreak.
A food shop owner responding to the survey said: “We need a grant to keep us going, to pay staff, pay the bills and pay suppliers over the odds to supply.
"Our utility bills are the same as before but the turnover is 50 per cent of normal. It’s not a sustainable model.”
The report data was collected through a survey carried out after UK lockdown and a series of virtual sessions hosted by BSWN with different communities in the region.
