57 FSB The gift sector is built on a mix of global and local links. Many independent retailers import stock or trade across borders, while others focus on locally made products with strong community ties. Across this diverse landscape, one group is central to the sector’s vibrancy: ethnic minority‑led businesses (EMBs). Yet when it comes to understanding their experiences, the information available is surprisingly thin. Much of the publicly available information on ethnic minority entrepreneurship is more than 10 years old. Without current, reliable evidence, government cannot properly identify the barriers these businesses face, let alone remove them. The limited data we do have paints a clear picture. Ethnic minority-led businesses (EMBs) tend to grow faster than others, are currently more likely to be based in urban areas and are more likely to import and export. They are also more active when it comes to seeking finance – a critical issue for gift sellers managing stock, cash flow and international supply chains. FSB data shows that EMBs currently are more likely to apply for finance than other firms. In Q3 2025, 17 percent of EMBs had applied for credit in the previous three months, compared with 11 percent of non-EMBs. Demand is higher, but rejection rates are higher too. 2025 research from the Lending Standards Board shows that 19 percent of UK EMBs applying for a lending product in the last 12 months had their application accepted for the full amount, compared to 58 percent of White British-led SMEs. There are several possible reasons for this. Some point to systemic racism within parts of the finance system. Others highlight issues such as differing levels of business education making applications less attractive to lenders. What is clear is that, without better data, these debates rest on anecdotes rather than firm, indisputable evidence. The same problem appears at the very first step of entrepreneurship. Many ethnic minority-led businesses report difficulties with opening a bank account, but again the evidence base is thin. Government cannot tackle barriers it cannot properly see. That is why FSB is calling for a comprehensive and regular national study of ethnic minority entrepreneurship. We also support adding an ethnicity field to the Companies House annual registration process and expanding questions in the Management and Expectations Survey, in line with recommendations from the APPG for Ethnic Minority Business Owners and work by the Office for National Statistics. Lenders, particularly those involved in the Growth Guarantee Scheme, should also be required to report on the finance they deliver to ethnic minority-led businesses compared with others. Alongside better data, government should embed trusted intermediary groups within business support, back the export ambitions of ethnic minority-led firms, and strengthen links with diaspora communities. Until these gaps are closed, many ethnic minority-led gift businesses will continue to face obstacles that remain poorly understood, harder to challenge, and easier to overlook. FSB Policy Chair Tina McKenzie shares why the FSB is calling for a comprehensive and regular national study of ethnic minority entrepreneurship CHAMPIONING DIVERSITY ABOUT FSB As the UK’s business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed. FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.
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