RACIAL DIVERSITY AN ASSET TO LONDON'S ECONOMY
(20 January 2005)

Mayor of London, Ken Livingstone today launched his Economic Development Strategy, prepared for him by the London Development Agency (LDA), which highlights the untapped potential of London’s diverse workforce. The Strategy seeks to enable ethnic minorities to fully access business opportunities and finance so that they can contribute to the capital’s economy. Drawing on research from National Statistics, the strategy highlights some key issues that hold back people from ethnic minority communities in either starting or developing a business.

These include:

· Ethnic minority businesses can often find it more difficult than other businesses to secure access to finance with lack of asset collateral being a particular problem when approaching lenders.

· 25 per cent of black owned businesses cite the high cost of premises as a ‘significant or very significant problem’.

· A disproportionately high number of people from ethnic minority communities achieving only lower level qualifications compared with the white population.

Launching the Economic Development Strategy, the Mayor said: “My London Development Agency is determined to dismantle the barriers that can hold people from ethnic minorities back from accessing top jobs and reduce opportunities for ethnic minority businesses.

“The LDA and I will take forward this strategy by bringing together all the major stakeholders in the London economy, including big business and the public, voluntary and community sectors, in a major drive to back ethnic minority businesses, raise skills levels and promote the benefits of diversity with London employers. The aim is to reduce the poverty levels that exist to a greater extent in ethnic minority communities which will in time benefit the whole capital.”

Over the next year the LDA will be working with other partners initiatives to promote diversity as vital to London’s economy. These include:

‘Jumpstart’, a programme where LDA is supporting ethnic minority enterprises and business intermediaries in embracing innovation to ensure these businesses retain their competitive edge.

‘Diversity Works’, the LDA’s anti-discrimination programme that promotes the business case for diversity to the private sector. The LDA is in the process of establishing a series of linked initiatives including a good practice guide for employers and businesses.

The ‘Procurement Development Programme’ where the LDA provides training and advice to help ethnic minority businesses to secure public sector contracts.

The ‘Redefining Black and Minority Ethnic Business Research and Action Plan’. This research was commissioned by the LDA to determine the current position and contribution of London’s ethnic minority-owned businesses to London’s economy. The Action Plan will take forward the report’s recommendations in support of ethnic minority businesses.

ABOUT THE LONDON DEVELOPMENT AGENCY

The London Development Agency is the Mayor's agency for business and jobs. The LDA prepares the Mayor's business plan for London and mobilises the support and resources of hundreds of partner organisations to help build a thriving economy for London's people, businesses and communities. The LDA is dedicated to improving sustainability, health and equality of opportunity for Londoners.