Does start-up financing differ for minority-owned businesses? Until recently, this has been a difficult question to examine because most data on small businesses looked at existing businesses of varying ages. But the development of the Kauffman Firm Survey (KFS) – an effort to track a sample of firms founded in 2004 over time – has allowed researchers to explore that question.
In
a paper prepared for the Minority Business Development Agency, and in
another report produced by the Kauffman Foundation, Alicia Robb of
the Kauffman Foundation and her colleagues Rob Fairlie of the University
of California Santa Cruz and David Robinson of Duke University examined
the KFS data and found that minority-owned new businesses are less
likely than White owned new businesses to be financed with external debt
and equity. But the reasons why have less to do with the businesses
being minority-owned than with differences between White and
minority-owned start-ups.
To read the full, original article click on this link: Minority Business Financing: Minority-Owned Start-ups Financing | Small Business Trends
Author: Scott Shane
