Funding Representation: An analysis of credit availability for minority owned businesses
Level of Education of Students Involved
Arts and Sciences
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.
Mattsey, Myles, "Funding Representation: An analysis of credit availability for minority owned businesses" (2023). Symposium on Undergraduate Research and Creative Expression (SOURCE). 1152.