Despite the challenges of the cost-of-living crisis, GoDaddy data shows that the UK’s microbusinesses are becoming more diverse.
GoDaddy’s annual Venture Forward study of 2.3 million British microbusinesses showed that the representation of business owners from minority ethnic groups has been gradually increasing since the start of the pandemic. Black founders accounted for 5.4% of pre-pandemic businesses and 6.6% among those created after March 2020. The corresponding figures for Asian entrepreneurs are 10.1% pre-pandemic and 11.9% after it began.
When we look at this year’s data, this figure has risen to 7.3% for microbusinesses founded by black entrepreneurs started in 2022, showing this upwards trend.
London’s microbusiness community is the most diverse of anywhere in Britain. Half (49%) of Britain’s black microbusiness owners live in London, while it is home to 40% of Asian entrepreneurs.
At GoDaddy, we are focused on empowering everyday entrepreneurs and making opportunities more inclusive for all, so this data is very encouraging. However, there is always more that can be done to support microbusiness owners of all backgrounds – they are the engine of the British economy and when they thrive, we all do.
I’m fortunate to work first-hand with an incredible selection of microbusiness owners. One such entrepreneur is Cleo Morris, Founder of Mission Diverse, which helps to connect minority and underrepresented communities with companies through entrepreneurship and employability training, education and mentoring.
As a minority ethnic microbusiness owner herself, she hopes to share her experience to help other people with brilliant ideas and energy, who just need the right support and advice to get started. She has a few top tips for budding entrepreneurs who are thinking of setting up their own microbusiness:
- Trust your gut: Making business decisions can be daunting, but it’s important to trust your gut instinct and abilities. More often than not when you don’t, you’ll regret it. Go with the first thought you had and test it, see if it works and then run with it. But don’t talk yourself out of an idea, and don’t let others sway you if you believe in something deep down. Every entrepreneur has a unique set of skills and experiences that can be leveraged to make their business successful. So trust yourself, and don’t be afraid to take calculated risks.
- Build a strong and FREE support system: Running and building a business can be lonely, but you don’t have to go it alone. Build a free support system of family, friends, mentors, advisors, and fellow entrepreneurs who can offer guidance, support, and advice. Many people will try to sell you paid start-up entrepreneurship coaching, but what you’ll find is they are only telling you things you can find on the internet. There are different start-up business support programmes that provide entrepreneurs with free business support. You can also look at joining local business networking groups to meet other like-minded start-up business owners.
- Buck trends and embrace technology: Get ahead of your competition by embracing the newest technology that is suitable for your business. But don’t be afraid to buck the trend. Remember, in today’s digital age, technology is a critical tool for small business success. Make sure to take advantage of technology to streamline your operations, reach new customers, and automate repetitive tasks.
- Know how much your time is worth: Know how much it costs to sell your product and/or service, with the cost for your own time included. Many start-up businesses forget to charge their time against the product or service they have created. Which often leads to the belief of a higher operating profit margin. When in reality – if you as an entrepreneur were to charge for your time to create and/or deliver the product or services you produce, your profit margins would vary. In order to run a business, you need to be able to pay yourself – so ensure you factor in your time to make or deliver the product or service you’re offering, otherwise you could be creating a false sense of a profitable reality in your business.