Spinder Dhaliwal
The continued success of Asian entrepreneurs testifies to the staying power of the Asian business community. Asian wealth in the UK has become more diverse. It now crosses from first through to second and third generations. We see an emerging and evolving Asian business community and it’s worth noting the pace and direction. It spans manufacturing and services, entertainment and fashion, hotels and property, food and pharmaceuticals. Whilst programmes like the Apprentice and Dragon’s Den have popularised the brash go getting entrepreneur, in reality it is hard work, perseverance and true grit that has seen the Asian business community flourish in the UK.
But unlike Alan Sugar, Richard Branson or Duncan Bannatyne, a lot of the Asian owned businesses are more famous than their owners. For example, not many people associate ebookers.com with its founder Dinesh Dhamija or Vitabiotics with Dr Kartar Lalvani. Both key players in the community but perhaps less well recognised outside.
So how did it all start? The first generation Asians arrived in the UK in the late 1960s and early 1970s from India, Pakistan, Bangladesh, Sri Lanka, numbering about 1.5 million, together with some 50,000 who were expelled from Uganda in 1972 during Idi Amin’s rule. Success in business compensated, to some degree, for the initial lack of recognition from their new host country. The East African Asians, especially, tried to recapture some of the self-esteem they lost when they were forced to leave their businesses behind, only to realise that they had become an unexpected minority in the UK.
The first generation aimed primarily for economic comfort and security for the family whilst seizing the opportunities the UK presented. Some businesses were set up in order to keep the family members together and in employment and they enjoyed the status of being ‘business’ people, which carried some weight in the community. Corner shops became their stronghold.
The Asian entrepreneur was held up as a role model highlighting the ‘rags to riches’ story. They transformed the UK from an 8 hour working day to 24 hours seven days a week. Indian cuisine and restaurants became a key part of the British lifestyle. The restaurants are responsible for the success of many of the key players in Asian enterprise. Gulam Noon, for example, credits the restaurants for opening the doors for his range of Indian chilled and frozen foods to be found in Sainsbury’s and Waitrose amongst other stores. The same is true for the success of Karan Bilimoria and Cobra lager. However, in reality, a few high fliers mask a proliferation of firms concentrated in sectors with low barriers to entry, and a struggle for survival. Many of the corner shops so closely associated with Asians would not be financially viable if you costed in the true family labour costs. These shops are going into the hands of the next generation of immigrants as younger Asians opt out of working the same hours as their parents.
The Forbes World’s Richest list this year boasts several Indians in its top 10 and a many more with a net worth of over $5 billion. With Asian wealth in the UK playing such a prominent role in the economy in terms of job creation and innovation it’s no surprise Indians are doing so well. The contribution of the British Asian community to the resurgence of British industry is exemplified by the likes of Swraj Paul, Nat Puri and, Dinesh Dhamija amongst others.
There have been some significant changes in the composition of wealth creation. For example, there has been a shift in activities away from traditional manufacturing companies towards newer, higher-tech, higher value companies in industries like pharmaceuticals. The growth of Waymade healthcare headed by the Patel brothers Vijay and Bhikhu demonstrates this trend. Vijay recalls his very humble start, ‘when you only have a shirt on your back you have nothing to lose.’ Born into poverty in the Western highlands of Kenya, the brothers arrived in the UK with a work ethic and a determination to succeed. Waymade Healthcare now employs over 700 people. Mike Jatania, the CEO of Lornamead too has enjoyed tremendous success with his acquisition strategy.
If the results of these entrepreneurs were achieved in decades full of challenge and controversy, the past few years have been no different; sluggish economic growth, stock market uncertainty and question marks about the housing market provide the starkest of economic backdrops to this compendium of Asian success. Firoz Kassam of the London based Firoka Group of Companies made his fortune in the hotel trade in London, which includes the Holiday Inn in Kings Cross as a major part of his portfolio. In 1999 he bought Oxford United Football Club for £1. This meant taking over its debts estimated to be about £18m and built the now famous Kassam Stadium on the edge of Oxford. Surinder Arora is one of the top hoteliers in the country with the flagship Arora International at Heathrow. It was the first hotel in the UK purpose-built for airline crew. A sister hotel opened at Gatwick in 2002 and now his portfolio is nation wide.
The emergence of more Asian female entrepreneurs, many of whom are featured at awards ceremonies and on rich lists, illustrate the potential for achievement despite cultural, social and economic barriers. Increasingly we are seeing and hearing about women who have ‘made the grade’ and are pushing forward with new ideas. Perween Warsi of S&A Foods showed her determination in getting her Asian food range on the shelves of the major supermarket chain Asda. However, there is still a paucity of women identified but this masks the true involvement of female entrepreneurship in Asian enterprise. Women play a pivotal role in the business but are rarely given the limelight. This is changing and no doubt we’ll hear more of these silent contributors in years to come.
The next generation of Asian entrepreneurs may lack the ‘fire in their belly’ which drove their fathers and may be too quick to purchase their first Mercedes but they still have much to offer. There is a greater degree of complexity for the younger generations.Whilst they are more integrated, more educated and more IT literate, they lack the family backing and access to subsidised family labour that the first generation enjoyed. They are gaining competitive advantage by capitalising on their linguistic skills, cultural knowledge and business contacts both here and overseas. Entry into business is out of choice, not the last resort. Shami Ahmed, head of the Legendary Joe Bloggs illustrates success despite his controversial image. He has had clashes with Elizabeth Emanual and Moss brothers amongst others but has built up and placed the clothing business initiated by his father at the cutting edge of the designer fashion world.
Asian wealth stimulates growth in industries and places that would struggle without the engine of Asian entrepreneurship. Asian wealth is diversifying. Asian wealth is modernising. Asian wealth crosses the generational divide. If you want modern and traditional management practices, if you want a new generation of entrepreneurs and wealth creators, this community will provide them
It is, no doubt, a community built on the principles of family, thrift and hard work but it is also a community of people who are not afraid to embrace change, who create the wealth on which the economy is built and who make major contributions to the society in which they have prospered. Asian entrepreneurs illustrate globalisation as a positive force where these businesses draw on both India and the UK and beyond for their success. Ebookers, Caparo and Cobra illustrate this so beautifully.
Asian wealth represents solid foundations, good business practice, commitment to community, openness to change and a massive contribution to society. They provide excellent role models for other migrant groups and everyone can learn from the Asian Phenomenon.
Dr Spinder Dhaliwal, University of Surrey, author of Making a Fortune – Learning from the Asian Phenomenon
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