This article examines trends in entrepreneurship among minority ethnic groups in Britain. It begins with an analysis of how self-employment rates for different ethnic groups have evolved since the early 1990s. We find that rates of self-employment have fallen for Indians and the Chinese and argue that this is due to increased opportunities in paid employment, partly brought about by demographic change. However, entrepreneurs from these groups still work the longest hours. In contrast, self-employment rates have risen for Black Caribbean males in recent years and remain high for Pakistani males. We also document how the proportion of the self-employed with employees has varied over time and discuss trends in the extent to which the self-employment of different ethnic groups is concentrated within particular sectors.
Published: April 2009