Formal aid in an informal sector: Institutional support for ethnic minority enterprise in local clothing and textiles industries

Abstract

Since the 1970s, advanced countries have gone through a distinct process of economic restructuring. In a number of countries manufacturing industries such as clothing and textiles have suffered a gradual decline. In the UK the problems of the industry have been exacerbated by price rises in raw materials, the ability of retail groups to shift their manufacturing base to cheaper offshore locations and increased importation from developing countries. Despite these setbacks, Asians originating in the Indian subcontinent and East Africa continue to establish small clothing enterprises. Large numbers of these operate on the fringes of the formal economy, maintained against a background of low profit margins and competition. This study centres on the ways in which aid and information agencies are tackling the problems of this often hidden sector in Birmingham, Manchester and Leicester. Qualitative interviews were undertaken with 24 individuals representing a variety of formal and voluntary agencies connected to business development. In addition case-study research was undertaken with five firms. The results highlight the slow progress being made in the area of networking between the various institutions and the clear gulf between government-backed support agencies and the majority of Asian-owned clothing and textile enterprises.