Abstract
Small businesses (SBs) play a vital role in the economic development and cultural diversity of societies in the UK. Despite their significant contributions, SBs often face unique challenges that hinder their growth and sustainability. This paper explores the nuances of financial barriers confronted by small businesses including ethnic minority entrepreneurs, examining social, and economic dimensions. Key obstacles include limited access to financial resources and inadequate financial literacy. Additionally, language barriers and cultural differences further exacerbate these challenges. Using a combination of literature evidence and qualitative interviews with small business owners, this study identifies the critical factors impeding the success of these businesses. The findings underscore the need for targeted financial literacy programs, policy interventions and support mechanisms tailored to the specific needs of SBs. By addressing these hindrances, policymakers and stakeholders can foster a more inclusive business environment that leverages the full potential of small and ethnic minority entrepreneurs. This research aims to contribute to a deeper understanding of the barriers faced by SBs and to inform strategies that promote their resilience and growth.