JSS  Vol.3 No.7 , July 2015
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.
Cite this paper: 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.

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