Beyond Survival: How Black and Asian-Led Social Enterprises are Responding and Adapting to the UK Cost-of-Living Crisis

This report provides comprehensive evidence of the impact of the cost-of-living crisis on businesses, individuals, and society, focusing on social enterprises led by Black and Minority Ethnic (BME) individuals in the United Kingdom. It focuses on the innovative strategies adopted for economic crisis whilst acknowledging the barriers facing BME social entrepreneurs, including increased business costs, difficulties with financial planning, and the potential threat of business death. We use a qualitative research design and interviews as the data collection medium to provide evidence of BME-led social enterprises’ response to the cost-of-living crisis and their adaptation strategies. Fourteen founders and directors were interviewed between March 2023 and January 2024. The social enterprises are predominantly micro and small operating in England, tackling various economic and social issues. The analysis of the interviews suggests five main categories of resilience strategies: strategic business planning, working from home, asset optimisation, fuel voucher schemes, and grant diversification.

Our findings provide ten practical recommendations for social enterprise decision-makers, funding institutions, and government bodies, which are divided into two parts. Recommendations for social enterprise decision-makers are: 1) financial planning, 2) operational efficiency, 3) diversification of income streams, 4) flexible work arrangements and 5) community engagement. Recommendations for funding institutions and government bodies: 6) flexible funding models, 7) long-term support, 8) collaborative initiatives, 9) capacity-building programmes and 10) policy support and advocacy. Investing in flexible funding and sustainable collaboration between social enterprises and relevant stakeholders, such as social investors, can empower social enterprises to develop resources and capabilities fit for crisis response.