Keywords: minority ethnic businesses, ethnic minorities, small business, entrepreneurship, globalisation, start-ups, self-employment, literature review, UK, United Kingdom
Why do minorities launch businesses in Britain?
Based on a review of the extant literature, this paper explores why ethnic minority people start-up small businesses in Britain. Evaluating the motives of ethnic minority population in Britain and internationally, the paper examines common patterns of 'pull' and 'push' factors along with certain theories that respectively encourage and force minority ethnic workers into self-employment, entrepreneurship and small businesses. This paper is a part of a doctoral project, which at a later stage has included an empirical study of the subject area. Literature review so far reveals that the 'pull' factors for encouraging entrepreneurship are: a desire to be financially and managerially independent and autonomous. On the other hand, 'push' factors were cited as higher rates of unemployment and pay and employment discrimination faced by ethnic minority workers, lack of educational qualifications or lack of recognition of their qualifications, job dissatisfaction and inferior job conditions.