Black British Businesses Are Ready to Scale — Access to Finance Is the Missing Piece - BBLF - Black Business Leaders' Forum

At Black Business Leaders’ Forum (BBLF), our work is driven by a clear purpose: to support, connect, and champion Black British business leaders. While Black entrepreneurs are among the most ambitious and innovative in the UK, evidence consistently shows that they face structural barriers that limit growth most notably unequal access to finance.

This article explores why supporting Black British businesses matters, the real challenges they face, and why organisations like BBLF are essential to creating long-term change.

The Landscape of Black British Business in the UK

Black entrepreneurs play a vital role in the UK economy, yet their contribution is often under-recognised and under-supported.

Research from the British Business Bank shows that only around 2% of UK businesses are led by people from Black ethnic backgrounds. Even more striking, Black-led employer firms account for just 0.1% of UK SMEs, highlighting how few can scale and create jobs. [Link]

Despite high levels of entrepreneurial activity, many Black-owned businesses remain micro or sole-trader operations not due to lack of ambition, but due to systemic barriers to growth.

Access to Funding: A Persistent and Structural Barrier

Access to finance remains the single biggest challenge facing Black British entrepreneurs.

According to the British Business Bank, entrepreneurs from ethnic minority backgrounds receive only 8% of total UK startup and scale-up funding, with Black founders receiving a disproportionately small share. [Link]

Further research from Lloyds Banking Group highlights a deep trust gap:

Only 13% of Black business owners seek finance from banks
Just 43% trust financial institutions to act in their best interests [Link]

Evidence presented in UK Parliamentary debates shows that Black entrepreneurs are significantly more likely to be refused loans than White entrepreneurs, even when controlling for business fundamentals. [Link]

The impact is even more severe for Black women. A report by the Women and Equalities Committee found that Black female founders receive less than 1% of venture capital funding in the UK. [Link]

Why This Gap Matters: Beyond Equality

Supporting Black British businesses is not only a question of fairness it is an economic necessity.

Economic contribution

The ScaleUp Institute shows that ethnic minority-led businesses contribute billions of pounds to the UK economy and are a growing source of employment. [Link]

Innovation and competitiveness

Black entrepreneurs bring new ideas, markets, and approaches that strengthen the UK’s global competitiveness.

Wealth creation and social mobility

Business ownership remains one of the most effective routes to long-term wealth creation. Unequal access to finance directly reinforces the UK’s racial wealth gap.

Stronger communities

Black-owned businesses are more likely to reinvest locally, employ from within their communities, and act as mentors and role models for future generations.

The Role of BBLF

This is where BBLF plays a critical role.

Our objectives are to:

Connect Black business leaders and entrepreneurs
Create trusted spaces for peer learning and collaboration
Improve access to networks, institutions, and opportunities
Advocate for fairer access to finance
Support sustainable growth and leadership development

By bringing together entrepreneurs, professionals, and institutions, BBLF helps close the gap between potential and opportunity.

Looking Ahead

The evidence is clear: Black British businesses are not underperforming; they are under-supported.

With equitable access to finance, networks, and decision-makers, Black entrepreneurs can scale faster, create more jobs, and make an even greater contribution to the UK economy.

At BBLF, we are committed to being part of that change not just through conversation, but through action.

The challenges facing Black British businesses are well-evidenced but real change happens when voices are amplified and action follows.

If this article resonates with you:

Reshare this blog within your networks to help raise awareness and keep the conversation moving
Leave a comment below to share your experience, insight, or perspective on access to funding and business growth
Engage with BBLF by connecting with our community of business leaders, entrepreneurs, and partners
Support Black-owned businesses whether as a customer, collaborator, investor, or advocate

Every reshare, comment, and conversation helps challenge barriers, influence decision-makers, and create a more inclusive UK business landscape.

Together, we can turn evidence into impact.