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

• 成果类型: Article
• 署名作者: Fairlie, Robert; Robb, Alicia; Robinson, David T.
• 署名单位: University of California System; University of California Santa Cruz; National Bureau of Economic Research; University of Colorado System; University of Colorado Boulder; Duke University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.3998
• 发表日期: 2022
• 页码: 2377-2400
• 关键词: access to capital; entrepreneurs; minorities; Start-ups; financing; racial inequality

摘要

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