Funding Representation: An analysis of credit availability for minority owned businesses

Level of Education of Students Involved

Undergraduate

Faculty Sponsor

James Old

College

Arts and Sciences

Discipline(s)

Political Science

Presentation Type

Oral Presentation

Symposium Date

Spring 4-28-2023

Abstract

In the business world, a line of credit can be the deciding factor in a company's operation or closure. According to the Small Business Association, “small business credit cards account for $430 billion in spending, or about 1 in every 6 dollars spent on general purpose cards”, so clearly small time entrepreneurs, who specialize in taking monetary risks for profit, rely heavily on the ability to make purchases now and pay them off later. And in our modern world of start-ups, “mom and pop shops”, and online businesses, more and more people are looking to break into this scene. This includes marginalized and minority groups, those who traditionally have been denied or restricted from access to credit. In 2020, “an estimated 140,918 U.S. firms with majority Black or African American ownership, up 14% from 124,004 in 2017…” (Pew Research), while nearly “one in four new businesses is Hispanic owned” (SBA). My essay ventures to answer the question as to what policies have been enacted to work against these institutional blockades to credit access, how they've negatively and positively affected the longevity of minority owned businesses, and what changes can still be made to assist those who want to become self sufficient and make a more equitable field in the business world for all. My research pulls from numerous sources, including governmental journals, academic databases, and social action organizations dedicated to this very field.

Biographical Information about Author(s)

Myles is a senior Music and Political Science double major. While Myles hopes to pursue a career in Music Direction, he has a fervent passion for political science and political research. His interest in the given topic stems from a previous research project conducted his sophomore year regarding Latinx/Hispanic owned businesses and federal assistance programs. Having gained a bit of perspective on those programs, he hoped to expand this research to credit policies across the board, especially as minority owned businesses have begun making up a larger part of our economy.

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