TITLE:
A Preliminary Study of Barriers to Bank Financing of Ethnic Chinese Entrepreneurs in the UK
AUTHORS:
Jane Zhang
KEYWORDS:
Entrepreneurship, Ethnic Minority Entrepreneurship, Ethnic Chinese Business, Financing, SMEs
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.3 No.7,
July
14,
2015
ABSTRACT: Ethnic minority entrepreneurship has been a
growing research interest, however, little has been known about financial
barriers to start up and run a business venture from the perspectives of UK
ethnic Chinese entrepreneurs. The aim of this study is to explore the financial
barriers of ethnic Chinese entrepreneurs in starting up and running a business
in the UK. Through semi-structured interviews with 12 ethnic Chinese
entrepreneurs who run businesses in the UK, this study has preliminarily found:
1) ethnic Chinese businesses in the UK have increasingly faced difficulties to
get access to bank finance since the global financial crisis; 2) the
difficulties are largely caused by a lack of communication and understanding
between the entrepreneurs and financial institutions; 3) the traditional
perceptions of Chinese businesses have disadvantaged ethnic Chinese entrepreneurs
in the UK when they apply for bank credits. This study offers a number of
implications. For policy-makers, an understanding of the characteristics of
ethnic Chinese businesses and financing barriers to ethnic Chinese in business
start-ups and running is important for the development of policy that encourages
and supports ethnic Chinese businesses. For banks in the UK to expand their
business, there is a need to develop tailored products and services
specifically for ethnic Chinese entrepreneurs.