Department
Economics, Finance and Accounting
Award
1st Empirical Faculty
Classification
Faculty/Staff
Description
We investigate how gender and minority status affect the likelihood that small business owners are discouraged from seeking credit. Our analysis utilizes a nationwide survey of small businesses conducted by the Federal Reserve. The results indicate that female and minority owners are about 6.5% and 9.1% more likely to be discouraged from seeking credit at a bank than for their male and white/non-Hispanic counterparts. Our findings complement previous studies on discrimination in lending and illustrate a negative drag on the U.S. economy.
Why Are Small Business Owners Discouraged From Borrowing?
We investigate how gender and minority status affect the likelihood that small business owners are discouraged from seeking credit. Our analysis utilizes a nationwide survey of small businesses conducted by the Federal Reserve. The results indicate that female and minority owners are about 6.5% and 9.1% more likely to be discouraged from seeking credit at a bank than for their male and white/non-Hispanic counterparts. Our findings complement previous studies on discrimination in lending and illustrate a negative drag on the U.S. economy.
