Study shows black entrepreneurs face more obstacles

Out-of-home (OOH) company Clear Channel has worked with Channel 4 to look into the challenges faced by black-owned businesses compared to white counterparts.

Clear Channel Compass was launched by the OOH company in 2021 in partnership with Jamii to support black-owned businesses with free outdoor advertising space. So far eight businesses have benefitted from the scheme, with applications for the 2023 scheme now open on Clear Channel’s website.

For the latest study into black-owned businesses, Channel 4 worked with Clear Channel UK and the creator of the Black Pound Report, BACKLIGHT, in order to better understand and mitigate issues faced by black business owners.

The research included responses from over 500 entrepreneurs and showed 56% of black-owned businesses only receive funding once successful compared to 35% of white business owners.

Research was carried out by research company The Good Side, which also reported that 53% of black-owned businesses agreed they had to fight harder to get others to believe in their business.

Figures also showed 21% of white respondents guessed total funding goes towards black-led businesses, while in reality its only 0.24% of total venture capital investment.

Caroline Forbes, head of sales at Out of Home Agencies at Clear Channel UK, comments: "This comprehensive research study has been invaluable in helping us to better understand the challenges that black entrepreneurs face and how we can further support them as a media owner.

“With advertising being identified as one of the vital parts to business success, we will continue to create more visibility for black-owned businesses on UK's high streets through our Clear Channel Compass initiative in line with our ongoing commitment to be both a Platform for Brands and a Platform for Good."

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