In our latest guest post we here from Ace Entrepreneurs founder Nadine Campbell on the power of networks in supporting diverse businesses to scale
The entrepreneurial landscape in the UK is becoming more diverse each year, with an increasing number of founders from underrepresented backgrounds stepping into the spotlight. In fact, over 810,000 new businesses were registered in 2023, and according to the Rose Review, the number of female-led businesses has grown by 18% in the past year alone.
However, the journey for many of these founders remains fraught with challenges, particularly when it comes to accessing the funding and networks necessary to scale.
The Challenge of Funding for Diverse Founders
One of the most pressing issues facing diverse founders is the access to capital. While bootstrapping is often the initial route, research has shown that many diverse businesses struggle at the 3.5-year mark. Data from Extend Ventures reveals that black female entrepreneurs are more likely to receive smaller rounds of funding, if any, and are at a significantly higher risk of business failure due to undercapitalisation. In fact, according to Extend Ventures only 0.24% of venture capital in the UK went to black female entrepreneurs between 2009 and 2019
For many businesses, the fine line between asking for too little and lacking the revenue traction to ask for more is a constant balancing act. According to a report by Cornerstone Partners, diverse founders tend to ask for smaller investment rounds compared to their peers, often underestimating the capital needed to scale effectively. This under-asking, while cautious, can sometimes hinder their growth prospects. On the flip side, without strong revenue performance or demonstrable traction, asking for more funding becomes a difficult proposition.
Creating Growth with Collaboration
So how can these founders navigate these barriers? One key solution lies in collaboration and the power of networks. By partnering with fellow founders, mentors, and investors, entrepreneurs can unlock new pathways to growth.
According to the UK ScaleUp Institute, 75% of high-growth companies attribute part of their success to strong professional networks. These connections enable founders to share knowledge, identify opportunities, and form strategic partnerships that can propel them forward.
Networking and collaboration are particularly vital for women of colour, who often face even steeper barriers when compared to their male counterparts. The Alison Rose Review highlights that women are less likely to scale their businesses due to challenges in accessing finance, with this effect even more pronounced for women from ethnic minority backgrounds. In a landscape where only 1% of venture capital goes to all-female teams , collaborative efforts to level the playing field become crucial.
How EIS and SEIS Can Help—If Utilised Correctly
Government schemes like the Enterprise Investment Scheme (EIS) and the Self-Employment Income Support Scheme (SEISS) offer a valuable lifeline for diverse founders, but they are often underutilised. Many founders, particularly those who are new to entrepreneurship, either don’t apply for these schemes or ask for too little, fearing they lack the credentials to secure larger sums.
However, knowing how to leverage these schemes properly can mean the difference between struggling through the bootstrapping phase and achieving sustainable growth. EIS, for example, offers investors tax reliefs, making it an attractive option for startups looking to raise capital. For founders, understanding the right timing and amount to request, based on their business model and growth stage, is key to moving beyond the initial bootstrapping phase and securing the capital needed for scalability.
The Balance Between Traction and Asking for Funding
One of the major obstacles founders face is knowing how much to ask for—and when. Asking for too little can leave a business undercapitalised, but asking for more without sufficient traction can deter investors. According to the British Business Bank, more than 60% of startups fail because they lack sufficient funding to sustain their growth.
Building traction early—whether through a strong customer base, repeatable revenue streams, or demonstrable market need—is critical to securing the right level of funding. Investors are more likely to back a business that has proven its product-market fit and shown a clear pathway to scaling. This is where events and networks become indispensable, as they provide opportunities to showcase growth, meet potential partners, and fine-tune business models with the support of experienced mentors.
The Importance of Events and Networking for Business Growth
For many founders, access to the right events and networks can mean the difference between success and failure. The British Venture Capital Association (BVCA) highlights that businesses with strong mentorship and advisory support are 33% more likely to secure investment in their early stages. By attending events where founders can meet investors, share their stories, and collaborate with industry leaders, they significantly increase their chances of scaling.
Nadine Campbell is the founder of Ace Entrepreneurs
ACE Fest, takes place in London on November 1st, providing founders with an opportunity to connect with potential investors, mentors, and partners. This event is designed to create an ecosystem where diverse businesses can flourish by leveraging the power of collaboration. ACE Fest offers a platform to make meaningful connections for founders seeking to scale and investors looking to support underrepresented talent
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