Last updated: 04 Nov 2024 09:00 Posted in: AIA
Diana Chrouch OBE examines the key to powering up ethnic minority business growth.
Ethnic minority business owners contribute an estimated £25 million to the UK’s economy. They also present a hardworking and entrepreneurial economic powerhouse that – with the right support and opportunities – could provide engine fuel to the growth of the UK’s international trading prowess across the globe.
Like all business owners looking to carry out international trade, ethnic minority business owners are very keen to grow their businesses and earn profits. To achieve this, they are open to finding the right business support, especially when they are seeking to compete and grow their businesses in a dynamic and lucrative global economy.
This is where the expert skills of international accountants can be invaluable, enabling ethnic minority business owners to access the advice and support that they need to shape their businesses for international success.
Disproportionate barriers
Despite their potential, it has long been reported that ethnic minority businesses face disproportionate barriers when it comes to accessing the finance and business support that they need to thrive.
A key issue is a lack of trust in generic ‘one size fits all’ advice, which is not tailored to proactively address the diverse cultural needs or business models of ethnic minority businesses.
They are also wary of advisors from mainstream organisations that have low levels of diversity amongst their teams and senior leadership.
As a result of these barriers, researchers have found that ethnic minority business owners have historically preferred to turn to trusted professional advisors such as accountants and lawyers for business advice, rather than from traditional business support organisations.
Trusted advisors
These research findings chronical the barriers that ethnic minority businesses face. However, they also provide an opportunity for international accountants to leverage their unique position as advisors with knowledge of diverse international markets. They can provide ethnic minority business owners with expert and culturally sensitive advice, enabling them to build the agility and resilience that they need to maximise their potential to successfully scale their businesses in international markets.
From strategic financial planning, navigating complex international tax regulations and structuring international operations, to bringing a wealth of knowledge and critical ‘know how’ in diverse cultural markets, international accountants are well qualified to provide invaluable professional skills.
As vital as these skills are, however, of equal importance to ethnic minority businesses is the ‘type’ of business support that international accountants can provide. These professionals can work hard with clients to develop close, long-term, trusted advisor relationships. These allow them to integrate the mentorship, support and tailored advice they can offer, and which has long been the preferred ‘go to’ business support model sought by ethnic minority businesses.
Untapped potential
Ethnic minority businesses present an untapped potential. Research shows that they are more likely to be involved in international trade than their white British counterparts. They also present a valuable asset through their powerful international diaspora links around the globe. This provides them with important cultural and market insights with enormous potential for competitive advantage and ability to boost growth in international trade.
International accountants are a potentially important conduit and could provide the vital support to increase the capacity of the UK’s ethnic minority business communities to contribute to the expansion of international trade.
Capacity building
International accountants are also in prime position to provide the capacity building that ethnic minority businesses need to overcome many of the disproportionate barriers that they have traditionally faced, and which have hampered their ability to take their businesses to the next level.
A key challenge has been access to the finance and investment that they need to scale up their businesses.
Indeed, the development of a robust financial strategy to provide the financial knowledge and resources needed to build an effective strategy is critical to success. These are ‘bread and butter’ professional skills that international accountants can provide.
Furthermore, through their valuable networks and experience, international accountants can also help ethnic minority businesses to access a wide range of funding options, including international grants, venture capital and funding programmes focused on ethnic minorities. They can also provide expert advice and support to assist with preparing necessary financial documents and building a financial profile that will attract investors.
As well as bringing expert skills, international accountants are in an advantageous position when it comes to being able to build productive and lucrative long-term relationships with ethnic minority business communities. They can build on their hands-on experience of working with diverse cultures. They can also adapt their guidance to offer a tailored and culturally sensitive approach to business support.
These advantages in providing tailored expert services to a potentially lucrative underserved business community are clearly a win for the international accountancy profession. After all, it is constantly facing other challenges in a backdrop of complex and evolving regulatory frameworks, and emerging significant issues such as climate change and the increasing role of technology in the provision of professional services.
For ethnic minority business owners looking to expand and thrive, partnering with an international accountant could be the key to unlocking their full potential. These professionals can provide much more than number crunching. Instead, they can provide a menu of game changing strategic partnerships to deliver tailored financial strategies, expert tax advice and access to sources of funding and market insights.
Critically, international accountants can provide long term relationships with ethnic minority businesses, enabling them to build those key trusted advisor relationships that they need as a precursor to achieving successful global expansion.
Author biography
Diana Chrouch OBE is the Special Advisor to the All Party Parliamentary Group of Ethnic Minority Business Owners and the FSB National Champion for Ethnic Minority Business Policy.
