Race for Opportunity Ethnic Minorities in the Business Sector

Ethnic Minorities in Business and Finance

Administration and Mathematics

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1 Research Sources and Assumptions

1.1 Source

The data used in this factsheet is from the Higher Education Statistics Agency (HESA) student record database. The data covers the academic

year of 2007 – 2008. Definitions of the various subject areas used in this fact sheet can be found at: http://www.hesa.ac.uk/index.php/content/view/102/136/1/4/

1.2 Assumptions

The data used refers to UK domiciled students only; it does not include overseas students who are studying in the UK.

Students falling under the ‘Unknown’ category have not been added to the White group or any of the ethnic minority groups. Instead,

these have either been disregarded or represented as ‘Unknown’ in the analysis.

Business and Finance Administration and Mathematics (BFAM)

includes the following subjects: o Business and administrative studies

o Mathematical sciences

1.3 Definitions

The ethnic minority category groupings are based on Census 2001 categories. Please note in particular that:

White includes:

White

Irish Traveller

Mixed includes:

Mixed – White and Black Caribbean

Mixed – White and Black African

Mixed – White and Asian

Mixed – other

Other includes:

Other ethnic background

Not Known includes:

Not Known

Information refused

http://www.hesa.ac.uk/index.php/content/view/102/136/1/4/



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2 Ethnic Minorities in Business and Finance

Administration and Mathematics (BFAM)

2.1 Representation of Ethnic Minority Students in BFAM related subjects

Our research shows that amongst the various ethnic minority groups

studying BFAM related subjects at UK universities during 2007–08, students of Indian and Black African origin had the highest representation

(6.0 percent and 4.7 percent respectively). On the other hand, students from ‘Other Black’ backgrounds and students of Bangladeshi origins had

the least representation among ethnic minority groups - (see figure 1).

Figure 1: Representation of Ethnic Minority Students Studying BFAM Related Subjects (2007-08)

Source: HESA Student Records (2007-08)

The total ethnic minority representation of students studying BFAM

related subjects in 2007-08 was 23.6% compared to 71.0% of the

White student population studying BFAM related subjects during 2007-08.

1.1

2.1

1.6

1.8

1.1

3.1

6.0

0.5

4.7

1.6

Other

Mixed

Other Asian

Chinese

Bangladeshi

Pakistani

Indian

Black Other

Black African

Black Caribbean%



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We found that almost all ethnic minority groups had a higher representation in students studying BFAM, than in students studying all

subjects. Indians and Black Africans had the maximum percentage point

increase (2.3 percentage points and 1.5 percentage points respectively) - (see figure 2).

Figure 2: Representation of Ethnic Minority Groups among Students Studying BFAM Related subjects

vis-à-vis All subjects (2007-08)

Source: HESA Student Records (2007-08)

FAST FACTS

1.1

2.1

1.6

1.8

1.1

3.1

6.0

0.5

4.7

1.6

0.9

2.1

1.2

0.9

0.6

1.9

3.3

0.3

3.2

1.4

0 2 4 6 8

Other

Mixed

Other Asian

Chinese

Bangladeshi

Pakistani

Indian

Black Other

Black African

Black Caribbean ALL SUBJECTS

BFAM

%

White Representation:BFAM - 71.0%All Subjects - 79.0%

Total Ethnic Minority Representation:BFAM - 23.6%All Subjects - 16.0%

Accountancy

According to the Professional Oversight Board for Accountancy http://www.frc.org.uk/poba/), there are 270,000 qualified accountants in the UK; 170,000 students are currently working towards achieving an accountancy qualification. (Key Facts and Trends in the Accountancy Profession, Financial Reporting Council (FRC) (http://www.frc.org.uk), 2007).

The UK accountancy market is dominated by four global accountancy firms (the `Big Four’), which audit almost all of the top 100 public limited companies (PLCs) and most of the top 350 PLCs

Source: www.prospects.ac.uk



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2.2 UK Universities with the Highest Proportion of Ethnic Minority Students studying BFAM related subjects

In 2007/2008 there were 1.9 million UK domiciled students at UK

universities of which just over 12 per cent (238,158.30) were studying BFAM related subjects1.

Table 1 on the next page, shows the top 25 universities ranked by the

proportion of students from ethnic minority groups studying BFAM related subjects (2007-08). Brunel University had the highest proportion (78.3

percent) of ethnic minority students among students studying BFAM related subjects, followed by Middlesex University (77.5 percent) and the

University of East London (75.6 percent). These 25 universities constituted

49.6 percent of the total population of ethnic minority students studying BFAM related subjects at UK universities.

FAST FACTS

1 The most popular areas of study for this cohort were ‘subjects allied to medicine’ (14%) followed by Business

& Administrative Studies (11%) and Education (10%). The least popular subject was Veterinary Science (0.2%).

Banking

There are over one million people currently working in the UK financial services industry in more than 35,000 companies. Source: UK international financial services - the future, HM Treasury, 2009

The financial services industry employs around 4.2% of the UK workforce. Source: Labour Force Survey, Office of National Statistics, 2009



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TABLE 1 UK Universities with the Highest Proportion of Ethnic Minority Students studying BFAM related subjects

Top 25 Universities

All

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Brunel University 78.3% 5.5% 13.5% 1.1% 31.0% 8.4% 1.9% 2.0% 6.3% 4.3% 4.3% 2.6% 19.3%

Middlesex University 77.7% 5.8% 21.9% 2.2% 16.9% 9.7% 5.7% 1.4% 5.9% 4.1% 4.1% 4.7% 19.2%

The University of East London 75.6% 6.3% 30.2% 2.0% 6.2% 8.4% 9.1% 1.7% 4.4% 3.8% 3.5% 2.5% 16.6%

Queen Mary & Westfield College 71.6% 1.8% 7.0% 0.3% 19.5% 12.5% 10.2% 4.2% 8.0% 3.4% 4.7% 1.9% 18.8%

LSE 61.9% 0.3% 4.0% 0.0% 28.0% 4.0% 1.5% 11.5% 6.7% 3.5% 2.4% 0.7% 35.6%

Kingston University 60.6% 5.8% 13.0% 1.0% 15.6% 6.1% 2.0% 3.0% 5.3% 4.1% 4.7% 3.6% 37.0%

The University of Westminster 59.8% 3.9% 10.7% 1.3% 15.0% 7.8% 6.1% 2.2% 4.0% 3.8% 5.0% 4.2% 33.4%

The University of Greenwich 59.1% 4.7% 22.9% 1.7% 7.1% 4.0% 6.1% 2.2% 3.4% 4.3% 2.7% 3.0% 35.5%

University of Hertfordshire 55.9% 4.0% 11.9% 0.8% 20.0% 5.6% 2.2% 2.0% 3.2% 2.9% 3.3% 3.1% 43.6%

The School of Oriental & African Studies 55.6% 1.6% 11.1% 0.0% 11.1% 0.0% 3.2% 11.1 12.7% 4.8% 0.0% 0.0% 42.9%

The University of Bradford 55.4% 1.3% 5.7% 0.7% 7.9% 33.1 1.8% 1.6% 1.4% 1.4% 0.5% 1.2% 43.3%

Roehampton University 55.4% 8.8% 17.7% 1.7% 6.8% 4.2% 0.8% 3.1% 2.8% 4.7% 4.8% 0.4% 42.1%

King's College London 54.2% 1.0% 3.1% 0.0% 21.4% 4.6% 3.2% 7.4% 6.8% 4.2% 2.5% 0.7% 44.4%

London South Bank University 54.0% 8.4% 22.4% 1.3% 4.0% 3.9% 3.7% 2.1% 3.4% 2.5% 2.3% 3.0% 25.9%

The City University 53.2% 1.4% 5.3% 0.5% 22.9% 5.1% 2.1% 4.5% 5.2% 3.3% 2.9% 1.9% 44.5%

Thames Valley University 53.1% 6.0% 14.2% 1.8% 9.8% 5.5% 1.1% 1.6% 5.7% 4.8% 2.6% 3.0% 45.3%

University of Bedfordshire 50.2% 6.3% 18.7% 1.8% 3.1% 10.3% 4.1% 0.7% 1.6% 2.6% 1.0% 1.0% 39.2%

De Montfort University 49.1% 1.8% 5.4% 0.6% 28.5% 4.8% 1.4% 0.8% 2.6% 2.2% 1.0% 2.8% 49.9%

University College London 49.0% 0.3% 2.8% 0.2% 20.5% 2.8% 1.4% 8.6% 6.1% 4.1% 2.2% 0.5% 46.6%

The University of Wolverhampton 47.7% 4.6% 4.6% 0.9% 24.6% 7.4% 1.2% 0.5% 1.5% 1.8% 0.6% 1.9% 49.1%

Birmingham City University 47.8% 5.2% 6.7% 0.8% 14.0% 11.6% 2.7% 1.8% 1.9% 2.4% 0.7% 2.8% 51.4%

Imperial College of Sc.,Tech and

Medicine 45.7% 0.9% 5.1% 0.2% 13.4% 4.0% 1.0% 11.1% 4.4% 3.1% 2.5% 0.8% 45.0%

Royal Holloway & Bedford New College 44.7% 1.2% 5.1% 0.3% 14.4% 4.0% 1.6% 6.5% 5.4% 3.2% 3.0% 0.5% 53.3%

Aston University 43.6% 1.8% 4.2% 0.2% 21.2% 5.3% 1.4% 3.5% 2.2% 3.1% 0.7% 1.9% 56.0%

University of the Arts, London 42.4% 6.7% 9.1% 1.2% 5.8% 2.6% 1.9% 2.3% 3.0% 7.3% 2.5% 0.9% 54.4%

Top 25 Universities 57.0% 4.4% 12.3% 1.1% 15.9% 7.3% 3.4% 2.6% 4.0% 3.4% 2.8% 49.6% 38.5%

All UK Universities 23.7% 1.6% 4.7% 0.5% 6.0% 3.2% 1.1% 1.8% 1.6% 2.1% 1.1% 100% 71.0%



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2.3 Russell Group Universities with the Highest Proportion of Ethnic Minority Students studying BFAM

Table 2 on the next page, shows the percentage of students studying BFAM related subjects from each ethnic minority group at Russell Group

universities. London School of Economics and Political Science had the highest proportion (62.0 percent) of ethnic minority students, followed by

King’s College London (54.2 percent) and University College London (48.9 percent). Russell Group universities constitute 9.6 percent of the total

ethnic minority students studying BFAM related subjects at UK universities.

Accountancy

2008 figures suggest that less than 6% of partners are from ethnic minorities, and this figure falls to 3% in the big four. These figures matter, given that finance functions in large organisations will often recruit from accountancy firms. Source: http://www.cimaglobal.com/Thought-leadership/Newsletters/ Insight-e-magazine/Insight-February-2008/Diversity-stop-looking-in-the-mirror-says-top-FD/

However, 35% of KPMG’s graduate intake is now from ethnic minorities. The firm has set up a number of networks for their employees, including a black network and an Islamic society. Source: http://www.cimaglobal.com/Thought-leadership/Newsletters/ Insight-e-magazine/Insight-February-2008/Diversity-stop-looking-in-the-mirror-says-top-FD/



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TABLE 2 Russell Group Universities with the Highest Proportion of Ethnic Minority Students studying BFAM related subjects

Russell Group Universities

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London School of Economics

and Political Science 62.0% 0.3% 4.0% 0.0% 28.0% 4.0% 1.5% 11.5% 6.7% 3.5% 2.4% 0.7% 35.6%

King's College London 54.2% 0.9% 3.1% 0.0% 21.4% 4.6% 3.2% 7.4% 6.8% 4.2% 2.5% 0.7% 44.4%

University College London 48.9% 0.3% 2.8% 0.2% 20.5% 2.8% 1.4% 8.6% 6.1% 4.1% 2.2% 0.5% 46.6%

Imperial College of Science,

Technology and Medicine 45.6% 0.9% 5.1% 0.2% 13.4% 4.0% 1.0% 11.1% 4.4% 3.1% 2.5% 0.8% 45.0%

The University of Nottingham 23.4% 0.5% 1.9% 0.3% 10.5% 1.0% 0.3% 3.2% 1.7% 3.1% 0.9% 0.7% 73.6%

The University of Oxford 19.0% 0.1% 1.0% 0.2% 6.3% 0.6% 0.3% 5.2% 1.5% 3.2% 0.6% 0.3% 73.0%

The University of Warwick 18.2% 0.3% 1.9% 0.4% 7.6% 1.0% 0.2% 2.8% 1.7% 1.8% 0.4% 1.2% 74.2%

The University of

Southampton 17.7% 0.4% 2.5% 0.3% 4.0% 0.8% 0.7% 3.7% 1.3% 3.0% 0.9% 0.4% 80.6%

The University of Birmingham 17.6% 0.6% 1.3% 0.2% 7.9% 2.4% 0.2% 1.8% 0.7% 2.0% 0.4% 0.8% 73.3%

The University of Sheffield 17.4% 0.5% 1.6% 0.1% 5.9% 1.9% 0.2% 2.5% 1.1% 2.2% 1.3% 0.5% 80.2%

The University of Manchester 16.6% 0.3% 1.5% 0.0% 5.5% 2.5% 0.4% 2.5% 0.9% 2.4% 0.6% 0.9% 63.7%

The University of Cambridge 15.0% 0.1% 0.7% 0.0% 3.1% 0.4% 0.4% 5.2% 2.4% 2.2% 0.6% 0.2% 75.9%

The University of Bristol 13.0% 0.4% 1.0% 0.0% 3.1% 0.5% 0.2% 2.3% 1.5% 3.5% 0.4% 0.2% 84.0%

The University of Leeds 11.8% 0.5% 0.9% 0.1% 2.9% 1.4% 0.2% 1.8% 0.7% 2.9% 0.5% 0.4% 84.3%

The University of Liverpool 10.5% 0.2% 1.5% 0.2% 1.6% 1.0% 0.5% 2.0% 0.8% 1.8% 0.9% 0.2% 88.6%

The University of Glasgow 10.1% 0.0% 0.9% 0.0% 1.3% 2.7% 0.0% 2.3% 0.8% 1.6% 0.6% 0.2% 89.5%

The University of Edinburgh 10.0% 0.2% 0.6% 0.1% 1.5% 1.4% 0.2% 3.1% 0.8% 1.9% 0.2% 0.2% 86.9%

Cardiff University 9.7% 0.2% 0.9% 0.0% 2.6% 0.6% 0.7% 1.9% 0.4% 2.2% 0.3% 0.3% 88.3%

The University of Newcastle-

upon-Tyne 9.0% 0.2% 1.0% 0.1% 1.8% 1.0% 0.5% 1.7% 0.4% 2.1% 0.3% 0.3% 90.0%

The Queen's University of

Belfast 1.3% 0.0% 0.2% 0.0% 0.1% 0.0% 0.0% 0.5% 0.0% 0.3% 0.1% 0.0% 93.7%

Russell Group Universities 18.0% 0.3% 1.6% 0.1% 6.2% 1.6% 0.5% 3.2% 1.5% 2.3% 0.7% 9.6% 75.9%

All UK Universities 23.7% 1.6% 4.7% 0.5% 6.0% 3.2% 1.1% 1.8% 1.6% 2.1% 1.1% 100% 71.0%



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KEY FACTS

Ethnic Minorities in Business

Black, Asian and minority ethnic (BAME) led businesses are vital to the UK economy. There are an estimated 310,000 ethnic minority SMEs in the UK, contributing an estimated £20 billion to the UK economy per year – approximately 5% of total SME Gross Value Add (GVA) (£398bn in 2006)2.

They make up around 7% of all SMEs in the UK, representing an increasingly diverse range of sectors3.

Other critical characteristics include:

BAME groups have an overall self-employment rate (7%) similar to British and other white groups (8%). However, there is a wide variation between different ethnic groups. Black Africans (4%) and Bangladeshis (5%) have lower self-employment rates than Pakistani (11%), Indian (7%) and Chinese (9%) individuals4.

There are higher aspirations to start-up in business amongst ethnic minority groups, especially Black African (35%) and Black Caribbean (18%) groups (compared with 10% for White British Counterparts), but ‘conversion’ to start- ups remains very low5.

In the last four years the BAME self-employed population has risen by 37%. This is a steeper rise than that of the white self-employed population, which grew by 3% over the same period6.

The number of working age self-employed ethnic minority women had gone up by 48% between the second quarter of 2005 and the second quarter of 20097.

Source: BIS - The Government’s Response to the Ethnic Minority Business Task Force,

3rd November 2009

2 BIS Enterprise Directorate Analytical Unit estimates

3 BIS Annual Small Business Survey, average 2005/6 to 2007/8

4 BIS Analysis of ONS Labour Force Survey data 2008, rate out of all adults, UK

5 BIS Household Survey of Entrepreneurship 2007

6 BIS Analysis of ONS Labour Force Survey data 2005-2009

7 BIS analysis of ONS Labour Force Survey, 2005 to 2009.

Documents

Race for Opportunity Ethnic Minorities in the Business Sector