A Preliminary Study of Barriers to Bank Financing of Ethnic Chinese Entrepreneurs in the UK ()
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.
Share and Cite:
Zhang, J. (2015) A Preliminary Study of Barriers to Bank Financing of Ethnic Chinese Entrepreneurs in the UK.
Open Journal of Social Sciences,
3, 105-110. doi:
10.4236/jss.2015.37018.