Minority Entrepreneurship and Access to Finance

43 Pages Posted: 7 Jul 2021

See all articles by Elizabeth Berger

Elizabeth Berger

University of Houston; Cornell University

John H. Y. Edwards

Tulane University

Yang Wang

Tulane University - Tulane University

Date Written: January 12, 2020

Abstract

We explore whether financial access explains persistent gender and racial imbalance in entrepreneurship. The 1979 NLSY overlaps with bank deregulation events between 1971 and 2001, permitting a difference in differences analysis of the propensity for young people to attempt entrepreneurship. We find that the movement away from local finance supported new entry by African American men into entrepreneurship, but not by women of any race. We show that financial access is an important determinant of the propensity of young adults to become entrepreneurs and provide new evidence about a mechanism through which the demographic gap in entrepreneurship might be closed.

Keywords: Finance, Entrepreneurship, Credit Access, Inequality, Financial Discrimination, Gender, Race

JEL Classification: G00, G21, J15, J16

Suggested Citation

Berger, Elizabeth and Edwards, John H. Y. and Wang, Yang, Minority Entrepreneurship and Access to Finance (January 12, 2020). Available at SSRN: https://ssrn.com/abstract=3518018 or http://dx.doi.org/10.2139/ssrn.3518018

Elizabeth Berger (Contact Author)

University of Houston ( email )

Houston, TX 77204
United States

Cornell University ( email )

Ithaca, NY 14853
United States

John H. Y. Edwards

Tulane University ( email )

6823 St Charles Ave
New Orleans, LA 70118
United States
5048628357 (Phone)
5048655869 (Fax)

Yang Wang

Tulane University - Tulane University ( email )

1440 Canal St.
NEW ORLEANS, LA 70112

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
35
Abstract Views
223
PlumX Metrics