In the aftermath of the Black Lives Matter movement we have seen businesses across the U.K. being scrutinised for their lack of diversity. Whilst steps have been taken and commitments made one of the frequent rebuttals is a lack of industry data. Ground-breaking new research carried out by 10×10, a group of early-stage black founders and venture capitalists have launched “The Black Report” in partnership with Google. The report surveyed 60 black owned businesses in the UK asking questions about team composition, funding and problems they face. One of the key takeaways from the report was that on average these ventures tend to have more diversity across teams both in terms of race and gender.
This is a positive step in the right direction as we explore why ethnic minorities are not only under represented as employees within businesses but also the issues they face in starting a business. Andy Davis, co-founder of 10×10 said ”We felt it was important to create The Black Report, as we wanted to start painting a picture of black founders, a growing population with incredible value. The diversity stats are particularly interesting as we know from previous studies that there is a huge business case for hiring diverse teams. Black founders could become key in closing the national gap in regards to the lack of diversity in business”.
The report is in conjunction with Google for Startups who have had active involvement putting together the report and have recently committed to creating a $2m Black Founders Fund as part of their pledge for a more equitable future. Marta Krupinska, Head of Google for Startups UK said: “Having spent years in the startup world, I’ve remained shocked at how little we understand – and do – to support Black founders, despite obvious challenges they face in accessing funding and the networks critical to success. I’ve been really impressed by the work that the Black Report does to address all those, by not only showing data, but whole lives of entrepreneurs and thus creating the empathy and momentum we need to change the status quo.”
Some key highlights from the report include:
- 46% of businesses surveyed were founded by women
- 22% of companies were able to raise money fro family and friends
- £166k was the average amount of funding raised
- 32% of investors were black and 25% of investors were female
The full report can be found at here
This article is part of a series featuring underrepresented people making a difference. You can find more articles (click here) and if you have a story to tell or want to be updated as soon as new features are released get in touch via Twitter @TommyASC91