Entrepreneurs from ethic minorities have a tougher time getting loans in comparison to their white UK counterparts, recent numbers have revealed. The chances of African entrepreneurs being denied loans are four times higher, while those from the West Indies, Bangladesh and Pakistan are charged a higher rate of interest. Deputy PM Nick Clegg spoke out against this inequality and biased practice by banks in his speech at the 30th anniversary of the Brixton riot report by Lord Scarman.
Clegg said that iniquities such as these ought to be removed as they were discouraging many hopefuls from the ethnic minority communities from starting their own businesses. Equal opportunities and fairness are crucial to ensure true equality, he declared, and urged banks to encourage entrepreneurs from racial minorities.
The country’s banks were able to get back on their feet after being pumped with taxpayers’ money. They owe the people of Britain a great deal, and are responsible for helping build a robust economy, said Clegg. He added that it is also their duty to motivate ethnic minority and black entrepreneurs.
It is estimated that while 35 per cent of the UK population belonging to African backgrounds is looking at entrepreneurial careers, less than 10 per cent are able to successfully set up their own business. Even in the private sector, it has been seen that for every £1 earned by a white employee, his black counterpart has to make do with only 89p. It is important that banks raze down the barriers that are preventing ethnic minority start-ups from accessing credit.