Empowering the Ummah: Fostering Islamic Entrepreneurship in the UK
Choosing the right Business Structure that works for you.
A Snapshot of Muslim Entrepreneurship in the UK
British Muslims make up roughly 3.1% of the adult population, yet research suggests they may represent a much higher proportion of all UK company directors—a reflection of the strong entrepreneurial drive within the community. In London alone, Muslim-owned businesses account for over 33% of all SMEs, showing how deeply embedded Muslim entrepreneurship already is in the national economy.
Despite this, there remains huge untapped potential.
According to the Muslim Council of the Britain, British Muslims contribute an estimated £70 billion annually to the UK economy, made up of:
£42 billion from the workforce
£25 billion from business ownership
£2.4 billion in charitable giving and voluntary services
This contribution can grow significantly with more support, infrastructure, and investment in Muslim-owned startups and enterprises.
The Case for More Businesses, Organisations & Think Tanks
While the numbers are impressive, challenges persist. British Muslims still face higher-than-average unemployment, with 68% living in areas with high joblessness. Entrepreneurship presents a key solution—not just for individual success but for wider social mobility and resilience.
We need more than just businesses—we need:
Community-driven organisations that offer support and mentorship
Islamic think tanks that advocate for our economic interests
Startups and halal enterprises that meet the needs of the Muslim market
Financial tools that align with Islamic principles and modern business needs
How to Start a Business in the UK
Starting your own business is more accessible than many think. Here's a quick guide to getting started:
Choose a Business Structure
Decide if you'll operate as a sole trader, a limited company, or a partnership. Most small businesses start as sole traders or limited companies for liability and tax benefits.Register with Companies House
If forming a limited company, you’ll need to register your business name and details at Companies House. It usually takes less than 24 hours and costs just £12 online.Register for Tax
You must register with HMRC for Self-Assessment (if you're a sole trader) or Corporation Tax (if you’re a limited company).Open a Business Bank Account
Keeping your personal and business finances separate is essential. This is where the right banking partner makes a big difference.
Why We Recommend Monzo Business Banking
One of the best modern options for Muslim entrepreneurs is Monzo Business Banking. It’s a fully digital bank that offers powerful tools for freelancers, sole traders, and small companies:
Free and paid plans available
Invoicing directly from your account
Smart tax pots to set aside money for HMRC
Instant payment notifications
Excellent mobile-first experience
Even more importantly, Monzo is transparent, ethical, and committed to inclusive banking—a great fit for entrepreneurs who want to run their businesses with integrity.
In addition, as a newer, digital-only bank, Monzo doesn't invest customer money in fossil fuels, arms, tobacco, or other controversial industries-unlike many traditional banks.
Whether you are starting with a small side hustle as a sole trader, or a fully fledged business as a limited company, choose a bank that is fast, efficient and easy to use.
Signing up for Monzo is easy. By clicking through our exclusive referral, Monzo are offering £50 reward for new Monzo Business customers and £10 for new Monzo Personal Banking customers.
You can sign up here:
https://join.monzo.com/c/0wx7tcd
The Future is Entrepreneurial
To uplift the Ummah in the UK, we must cultivate a strong culture of business, innovation, and self-reliance. From halal e-commerce stores to ethical fintech apps and social enterprises, the opportunities are vast.
Whether you're launching your first side hustle or scaling an existing business, know this: entrepreneurship isn't just a career path—it's a great way to serve your community and uphold our shared values.