Examining the hidden narratives: the role of trust in addressing the hidden issues of ethnic minority entrepreneurs in Scotland

Ethnic Minority Businesses (EMBs) consist of both smaller businesses working locally and in more traditional sectors, as well as high-growth, innovative, and export-oriented businesses in the UK. This diversification has been accompanied by a growing recognition of the economic contributions of EMBs, both in terms of job creation and innovation., research by the Centre for Research in Ethnic Minority Entrepreneurship (CREME) has highlighted that EMBs contribute billions to the UK economy annually, with some estimates suggesting that they represent over 10% of all small and medium-sized enterprises (SMEs) in the country (Ram et al., 2013). It is important to recognize the diversity of Ethnic Minority Businesses (EMBs) and their range of benefits. Over the past 10 years, the provision of business support has typically focused on the growth of only a few enterprises that have demonstrated remarkable increases in their numbers during the last two decades Small Business Service (2004) in the UK showed that in 2004 more than 250,000 small businesses were owned and operated by immigrant entrepreneurs, representing over 11 per cent of all new business start-ups. Promoting entrepreneurial EMBs to grow is vital, yet because of the nature of their business, many EMBs are regarded by finance partners as lifestyle businesses or as insignificant. The entrepreneurial outcomes of ethnic minorities in the UK are significantly impacted adversely by a lack of funding during the initial stages of the business. Many of them faced challenges in accessing traditional employment opportunities due to discrimination and other barriers, leading to a rise in self-employment as an alternative pathway to economic participation (Ram and Jones, 2008). Ahmed & Patel (2021); and Morris (2019) find that many rely on external funding to fulfil the goal of becoming entrepreneurs (Agyapong, 2020). Compared to SMEs, EMB owners have roughly the same access to bank funding products in the UK, but they are more likely to believe that securing finance is challenging and are therefore discouraged from applying out of fear of being turned down (Kurniati et al, 2019; Corte et al 2013). One fundamental challenge that may keep a lot of potential entrepreneurs from embracing the need for development is their perception of limitations. Ethnic groupings vary in the way they feel about addresses regarding access to finance, especially in terms of feelings of discrimination.

Nonetheless, there are significant concerns among ethnic entrepreneurs in Scotland about unfair and unequal treatment. This breeds distrust and seems to be the main cause of increased levels of discouragement, which has a ripple effect on the economy of the United Kingdom as a whole. For EMBs to attain their full capacity for growth, finance providers need to address both current and apparent obstacles to financing and account for their relationships with them. Bad credit history and a poor financial history that is connected to creditworthiness are other barriers to obtaining bank funding. Accessing financial institutions and related support services in person has become increasingly challenging due to the closure of traditional bank offices in numerous inner-city areas and the transition to remote banking. Several EMBs may be discouraged from applying for and getting funds because of these issues, which are made worse by the pandemic. One of the main challenges that keep many EMBs from engaging with regulatory support and financial institutions is a persistent lack of trust. Many factors, both present and perceived, contribute to the high levels of distrust.

The purpose of this study is to investigate the importance of trust in ethnic minority entrepreneurship. They are affected by many challenges and issues, there are many issues and challenges faced by the EMBs, research shows that most of these entrepreneurs now look for alternative ways to survive and one of the key ways they use to survive is by looking at the role of Trust. This paper presents an opportunity to address this research gap.