Black and Asian business owners in London are putting family traditions and stereotypes to one side in order to run successful businesses, new research shows.
Research by Business Link for London shows that the desire for independence and success amongst ethnic minorities is transforming attitudes and the UK economy.
However, many are putting themselves at unnecessary risk by basing key business decisions on advice from friends and family, and seeking financial support from informal loans.
Research conducted in March 2006, questioned 209 Black and Asian entrepreneurs to find out their behaviours and attitudes towards business success.
The survey showed that 91% of entrepreneurs agree with the statement that ‘hard work beats ethnicity’ and nearly half put their success down to determination and perseverance.
Many of the entrepreneurs (67%), said a desire for independence and not to follow in their parents footsteps spurred them to start up their own business.
Only 19% cited a desire to follow in the family tradition as their reason for starting up.
However, respondents are putting themselves at risk when asking for advice and financial support.
Two thirds rely on advice from family or friends while less than a quarter seek advice from a qualified expert.
Furthermore, 17% used an informal loan from friends to get their business up and running, while 15% relied on a credit card.
Alison White, acting chief executive of Business Link for London, said: "Black and Asian men and women make an invaluable contribution to London's economy and it's positive that they are finding new ways to achieve business success.
“However, basing crucial business decisions on advice from friends and family and using credit cards and informal loans for funding is not the answer when so much is at stake."
© Crimson Business Ltd 2006