Black and White: Access to Capital Among Minority-Owned Start-ups

Autor:	Alicia Robb, David Robinson, Robert W. Fairlie
Rok vydání:	2022
Předmět:	White (horse) Strategy and Management Capital (economics) media_common.quotation_subject Demographic economics Confidentiality Business Management Science and Operations Research Start up Racism media_common
Zdroj:	Management Science. 68:2377-2400
ISSN:	1526-5501 0025-1909
Popis:	We used confidential and restricted-access data from the Kauffman Firm Survey and matched administrative data on credit scores to explore racial disparities in access to capital for new business ventures. The novel results on racial inequality in start-up financing indicate that Black-owned start-ups start smaller and stay smaller over the entire first eight years of their existence. Black start-ups face more difficulty in raising external capital, especially external debt. We find that disparities in creditworthiness constrain Black entrepreneurs, but perceptions of treatment by banks also hold them back. Black entrepreneurs apply for loans less often than White entrepreneurs largely because they expect to be denied credit, even when they have a good credit history and in settings where strong local banks favor new business development. This paper was accepted by David Simchi-Levi, finance.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::25d5fa2d5476b68c20444fd1b950fb23 https://doi.org/10.1287/mnsc.2021.3998 Zobrazit plný text záznamu