Trust, Exclusion and the Minority Entrepreneur

To say that entrepreneurship is central to economic growth is an understatement. Entrepreneurs create jobs, support communities and contribute to wider economic development. However, for many African minority entrepreneurs in the UK, recent events and ongoing challenges have exposed a difficult reality. Despite their strong entrepreneurial contributions, these groups continue to face persistent barriers. There also appears to be a perceived failure by policymakers and institutions to address what many see as a continuing imbalance.

What do we mean by this?

From our research, the issue can be understood in two connected ways. First, there are challenges relating to limited access to finance, exclusion from formal business networks, and unequal treatment within institutional systems. Second, and emerging from these experiences, is a lack of trust in formal institutions, particularly banks, regulatory bodies and business support organisations.

You may ask, what does trust mean? For us, trust is a shared positive expectation within relationships. It is the willingness to place confidence in another party, based on the belief that both the trustor and trustee will act in ways that are reliable, fair and consistent with what is expected.

It can be easy to overlook the issue of trust and to ask why it matters for minority entrepreneurship. For us, the answer is clear. Trust has real policy and economic consequences. A lack of trust in institutional arrangements discourages entrepreneurial opportunities and weakens entrepreneurial contribution. Indeed, our research suggests that, when formal support is limited or viewed with suspicion, entrepreneurs increasingly turn to alternative informal arrangements to drive economic activity.

If institutions are genuinely intended to be supportive, then they must also be inclusive and accessible in ways that sustain long-term business growth and development.

We have heard this consistently in our conversations with minority entrepreneurs across our networks. The question many ask is simple but important: how can entrepreneurs succeed when key groups remain disengaged from the very institutions designed to support them? This is not sustainable.

There is, therefore, an expectation that policies should become more inclusive and more responsive to the realities faced by minority entrepreneurs.

While we are on the subject of trust, our research visits with entrepreneurs in the West Midlands were particularly revealing. What became evident was that the barriers faced by African minority entrepreneurs are not solely economic. They are also deeply rooted in institutional relationships, perceptions of fairness and previous experiences of exclusion. This is not something we should simply accept.

The sense of historical exclusion and marginalisation runs deep. From our evidence, the distrust many of these entrepreneurs hold is shaped by past experiences and by anticipated unequal treatment. This discourages applications for funding and limits engagement with formal institutions. There is, therefore, a wider moral and policy argument here that deserves much greater attention.

But there is more to the story.

It is the wider findings that matter.

One of the most important lessons from our research is that entrepreneurs do not simply disengage. They adapt. We have seen that many African minority entrepreneurs rely on informal networks such as family, cultural groups and community organisations to access resources, advice and opportunities.

It is important to recognise the role of these networks. They provide resilience, support and practical guidance. They can help entrepreneurs navigate uncertainty and continue developing their businesses even when formal routes feel inaccessible or unresponsive.

However, there is also a challenge. While these networks are valuable, they often operate outside formal economic structures. In our view, this can limit business expansion and restrict access to wider markets, investment and institutional support.

This is why we want to challenge the assumption that increasing funding or training provision alone will improve entrepreneurial outcomes. More support may be necessary, but it is not sufficient. The evidence suggests that trust-building must become a central component of policy design. It is one thing to develop policy. It is another for people to trust the institutions behind it. Without trust, even well-intentioned policies risk low uptake and limited impact.

In our view, policy approaches should prioritise transparency, fairness and representation within institutions. Addressing perceived inequalities in lending practices and increasing diversity within decision-making bodies are essential steps forward. Building institutional credibility is also essential if minority entrepreneurs are to engage meaningfully with formal support.

Our assessment is that policymakers should also recognise the value of informal networks and consider how they can be integrated into formal support systems. Community-based organisations, for example, can act as trusted intermediaries. They can help bridge the gap between entrepreneurs and institutions. They can also help co-design policy interventions so that minority entrepreneurs are properly represented in policy planning.

This matters because trust cannot simply be announced. It has to be built through consistent action, fair treatment and meaningful engagement. Institutions that want to support minority entrepreneurs must therefore look beyond access alone. They must also consider whether their systems, relationships and decision-making processes are seen as credible and trustworthy.

When we look at the wider picture, there is also a real opportunity here. Addressing structural barriers, strengthening institutional relationships and recognising the value of trusted community networks can help create a more inclusive entrepreneurial ecosystem. If policymakers and support organisations are serious about minority entrepreneurship, then trust must sit at the centre of the conversation.

Share

Kašperová, E., Roberts, R., & Ram, M. (2022). Time to Change: A Blueprint for Advancing the UK’s Ethnic Minority Businesses. Centre for Research in Ethnic Minority Entrepreneurship, Aston University.

British Business Bank & Oliver Wyman. (2020). Alone Together: Entrepreneurship and Diversity in the UK. British Business Bank.

Olamide Falehin is associate lecturer at the University of the West of Scotland (UWS). Her research focuses on the significance of trust in entrepreneurship, investigating social issues and the dynamics of African minority entrepreneurship in the West Midlands. Additionally, Olamide represents PGRs within the British Academy of Management, advocating for the needs of doctoral students to enhance support and resources.

Dr Kingsley Omeihe is a Senior Lecturer in Marketing at the School of Business and Creative Industries, where he serves as an Associate Lead for Research Impact. He is the Editor-in-Chief of the Journal of Trust Studies. Kingsley holds an affiliated position as Chair of African Studies at the British Academy of Management.