Financing Patterns of Minority-Owned Small Business

  • Howard E. Van Auken Iowa State University
  • Hayward Horton Iowa State University

Abstract

This study examines the initial, seasonal, and refinancing characteristics of 67 minority business owners. The results are compared to the financial characteristics of women-owned and mixed ownership small firms. Minority-owned firms are found to rely primarily on equity to finance initial operations. Minority business owners' initial debt was commonly obtained through Small Business Administration (SBA)guaranteed loans and government grants. A very large percent of the minority business owners who acquired debt were required to provide numerous supporting documents. The results indicate that minority firms that experienced difficulty in obtaining initial capital continue to experience financial problems relating to operations.

Published
Jun 10, 2015
How to Cite
VAN AUKEN, Howard E.; HORTON, Hayward. Financing Patterns of Minority-Owned Small Business. Journal of Small Business Strategy, [S.l.], v. 5, n. 2, p. 31-44, june 2015. ISSN 2380-1751. Available at: <http://libjournals.mtsu.edu/index.php/jsbs/article/view/298>. Date accessed: 24 sep. 2017.
Section
Articles