TY  - BOOK
AU  - Fairlie,Robert W.
AU  - Robb,Alicia
AU  - Robinson,David T.
ED  - National Bureau of Economic Research.
TI  - Black and White: Access to Capital among Minority-Owned Startups 
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - November 2020; Hardcopy version available to institutional subscribers
N2  - We use 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 startup financing indicate that black-owned startups start smaller and stay smaller over the entire first eight years of their existence. Black startups face more difficulty in raising external capital, especially external debt. We find that disparities in credit-worthiness constrain black entreprenuers, 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 banks favor new business development
UR  - https://www.nber.org/papers/w28154
UR  - http://dx.doi.org/10.3386/w28154
ER  -