Linkages between regional characteristics and small businesses viability

Abstract Our study identifies regional traits associated with small business viability, paying particular attention to bank lending minority-owned firms. Although creditworthy minority enterprises (MBEs) have less access financing than similar White-owned firms, they increased their nationwide employee numbers substantially since 2002, more so indeed The discouraged borrower incidence among MBEs, nonetheless, is quite high. Given limited financing, the dynamism displayed by these firms surprising. To link characteristics policies, local economic well-being measures and racial intolerance levels are used identify areas where banks participate in Community Reinvestment Act (CRA) agreements, a proxy for willingness disregard owner race firm geographic location when We find that prosperity positively linked CRA agreement presence, while legacy of institutionalized racism negatively linked. next explore whether presence agreements relatively fewer borrowers. borrowers from seeking drops significantly present locally.