Dissertation

Accessing Capital for African American Small Business Ownership: A Qualitative Case Study

Whitehorn, Deborah Ann

2023

Overview

Accessing capital has been an ongoing economic issue for African American communities. The problem addressed in this study was how lending and credit practices by financial institutions prevent African Americans from acquiring small businesses. The purpose of this qualitative case study was to examine the experiences of African American business owners and entrepreneurs when applying for business financing to start a small business. The conceptual framework for this study was critical race theory. In this case study, 15 African American small business owners and entrepreneurs participated in the study, which included a demographic questionnaire as well as a semi-structured interview with open-ended questions. This investigation delved into the experiences of the African American business owners when obtaining capital for small business ventures. The information was coded and analyzed through Qualtrics and NVivo software. The research uncovered that participants used savings and personal funding to start and maintain their businesses because they were denied, were afraid of rejection and did not apply, or were offered high interest rates loans and lines of credit with low funding amounts. The research and findings determined that changes were needed in the laws and legislation to counter the systemic economic disparities in financial institutions that has been legitimized by social norms that continue to affect African Americans’ upward mobility and entrepreneurial opportunities. Recommendations for future research included additional studies that include a larger sample size as well as examining the economic and financial differences when determining funding between races. Empirical evidence was used throughout the research with government data and studies which showed that historical issues and financial institutions continue to impede financial mobility and sustainability for African American small businesses owners and entrepreneurs.

• Publisher: ProQuest Dissertations & Theses
• Subject: African American Studies / Business administration / Economics / Social structure
• ISBN: 9798381439618