Abstract
This article examines the financing patterns of minority-owned businesses. It first reviews findings from the previous literature on financing constraints and related constraints faced by minority firms. Next it conducts an extensive empirical analysis of the barriers to financing faced by minority-owned firms using data from three sources: the Survey of Business Owners (SBO), the Kauffman Firm Survey (KFS), and the Survey of Small Business Finances (SSBF). These are the most commonly used and respected sources of data on the financing of minority-owned businesses. The analysis explores the potential barriers to financing among minority-owned firms from the earliest stages of business creation to the financing of successful older firms. The goal is to provide a comprehensive analysis of the use of financial capital among minority-owned firms and the causes of constraints in financing.
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