How tailored support and ambition are helping ethnic minority-led businesses export globally

On 11th March, an inspiring and remarkable group of people gathered to discuss how the UK’s ethnic minority-led businesses can export more freely across the globe.

Over thirty founders and leaders from ethnic minority and women-led businesses came together at an event hosted by UK Export Finance (UKEF), the UK government’s export credit agency, to discuss the incredible opportunities offered by international exporting — and to demystify some of its challenges.

Eric Collins, CEO of Impact X, a venture capital firm that focuses on underrepresented entrepreneurs, moderated the session and put the challenge in blunt terms: Only 6% of the UK’s SMEs are led by ethnic minorities, even though they make up 18% of the UK’s population. Yet businesses that export have higher revenue growth, better productivity, and greater resilience.

So what do today’s ethnic minority-led businesses need to do to unlock what panelist Khalia Ismain, Black Entrepreneurs programme manager at Lloyds Bank, described as a £75 billion opportunity?

Paving the way for ethnic minority exporters

The founders in attendance represented a wide range of verticals as diverse as home luxury, food and drink, furniture, software, fashion, and finance. Some are already successful exporters, like panelist Tajinder Banwait’s Urban Apothecary London, which now makes 50% of its revenue from sales across 37 countries.

Others are still exploring paths to global sales, such as attendee Daniel Ojeme’s hospitality tech startup Eccobell. “We’ve worked with channel partners, but we found that having a physical presence abroad is really important to the process,” Ojeme said. “But the time and financial cost can be prohibitive.”

The obstacles to exporting for smaller businesses vary. For some, the costs of customer acquisition, doing research, attending trade shows, establishing relationships, and finding distribution partners are challenging, especially when cash is tied up in invoices. For others, global regulations present critical logistical challenges, especially when it comes to shipping food and drink products.

Access to finance is also an obstacle for many small businesses, and this is where UKEF adds immense value. Tim Reid, who spoke on the panel as UKEF’s chief executive, described the export agency’s role as “removing the risk for banks by providing guarantees on behalf of ethnic minority-led businesses and removing the risk for businesses by providing working capital and insurance in case of buyer defaults.”

Even so, there’s a variety of reasons as to why businesses don’t access these services. Some are cultural. For instance, when Banwait joked that “my dad won’t let me raise [funding]! He’d rather I borrowed from the family,” she elicited knowing chuckles from many of the founders in attendance. Similarly, Ismain noted that Lloyds’ “Black, British, in Business & Proud” report found that only 40% of Black-owned businesses trust banks to have their best interests at heart.

In other cases, a lack of knowledge about what’s available can be the biggest obstacle. For some, it’s about discovering resources, such as Lloyds’ International Trade Portal, which can help identify potential partners and provide document templates. For others, it’s about accessing alternative financing options, such as UKEF’s working capital schemes.

As Reid said, “What’s so important is helping these businesses find the right solutions for them… [and] the right partners for them, whether it’s high street banks or alternatives.”

An opportunity to export British products and culture

What’s so compelling about the potential for ethnic minority-led businesses to start exporting is the global appetite for British products, services, and culture.

Attendee Liha Okkuniwa, co-founder of skincare brand Liha Beauty, which famously went viral in the United States, shared: “There is so much interest in UK black businesses from the US; they’re so excited by our culture, even musically you can see it.”

Similarly, Eva Sonaike, attendee and founder of the luxury home décor brand Eva Sonaike, also found that when she moved her business from Germany to the UK, there was a different response to her products. “We used to print ‘Made in Germany’ but when we switched to ‘Made in the UK’ we found people were more interested, I think in part because of the UK’s textile tradition,” she said.

Between the English language and a tradition of British brands based on high-quality products, the economic opportunity for ethnic minority businesses to sell globally should feel like “pushing on an open door,” as Reid said.

Over the course of the event, the group discussed specific lessons they’d learned about distribution contracts, IP protection, and agent models. But it became increasingly clear that the key to building international bridges is so often about building relationships. As the founders in the room discussed their journeys and swapped details, it was clear that relationships were developing for all the attendees.

As Thomas Hal-Robson Kanu, former Premier League footballer and founder of The Turmeric Co., said, “We need to create a culture of ambition. We need role models and a network that can help drive the education our businesses need.”