BAME-owned companies have had to incur ‘considerable costs’ to protect their businesses through lockdown, new research has found.
A pilot study of black, asian and minority ethnic (BAME) business owners across the West Midlands has been conducted by the Staffordshire University-based Staffordshire Business School to investigate the specific challenges they have faced during the covid-19 pandemic and lockdown.
The study – which has been funded by the British Academy – looks at the challenges faced by BAME business owners, the strategies they used to keep their businesses afloat and how they engaged with financial and regional support.
During lockdown, many businesses in the UK were forced to shut up shop while many others continued to operate at a reduced capacity and with lower turnover.
So far, the research has found that the crisis facing BAME businesses has been exacerbated by the fact that BAME individuals have experienced higher mortality rates and that BAME-owned businesses usually hire a considerable amount of BAME employees and attract more BAME customers than non-BAME businesses.
Dr Tolu Olarewaju, of Staffordshire University, said: “In terms of outcomes, we have found that many BAME-owned businesses have struggled, some have sadly shut, others have barely managed to keep trading, and some have adapted and evolved.
“So far, our pilot study has focused on small-scale BAME-owned retail businesses and we have found that business adaptability and evolution was essential in the few months following the lockdown, and businesses that exhibited these characteristics fared better than those that did not.
“For example, many businesses had to adjust their operations to take account of social distancing, adopt new technology in day-to-day practices, and even venture into new business endeavours.
“Crucially, our research is highlighting that resource constraints and capabilities have been heightened for BAME businesses during the pandemic. We are also discovering how informal bodies and social units are stepping in to help businesses and individuals.”
Professor Fang Zhao, of Staffordshire University, added: “The pandemic continues to have significant implications for BAME-owned businesses because they are traditionally concentrated in sectors such as retailing, restaurants, hospitality, and other personal services.”
The research team is now looking to expand the study to cover BAME and non-BAME businesses throughout the UK and are asking business owners to complete a short 10-minute survey which can help inform future business policy.
The results will be shared with the Centre for Research in Ethnic Minority Entrepreneurship (CREME).
To take part in the survey, click here.
