Minority-owned businesses receive less external debt and equity

03/30/2010 | Small Business Trends

Minority-owned businesses are less likely to be financed through external debt and equity than white-owned businesses, according to the Kauffman Firm Survey. White-owned businesses start with much higher capitalization and raise more cash as the business grows, the study found. Why this happens is unclear, but the study found no evidence that being minority-owned influences external debt and equity invested.

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