Investing in Neighborhood Entrepreneurs: Private Foundations as Community Development Venture Capitalists
AbstractEntrepreneurs in low-income and minority neighborhoods encounter numerous problems in securing capital. To address this capital gap this paper considers a new role for private foundations as community development venture capitalists (CDVCs). It is suggested that through grant making and program-related investments, foundations may assume an equity stake in neighborhood-based entrepreneurs and acting as CDVCs apply lessons from the value-added component of private equity financing, including drawing on their expertise, professional contacts and financial resources to contribute to entrepreneurial efforts in the inner city.
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Bibliographic InfoArticle provided by Pepperdine University, Graziadio School of Business and Management in its journal Journal of Entrepreneurial and Small Business Finance.
Volume (Year): 5 (1996)
Issue (Month): 2 (Summer)
Entrepreneur ; Foundations; Neighborhoods; Community Development;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Freear, John & Sohl, Jeffrey E. & Wetzel, William Jr., 1994. "Angels and non-angels: Are there differences?," Journal of Business Venturing, Elsevier, vol. 9(2), pages 109-123, March.
- Ehrlich, Sanford B. & De Noble, Alex F. & Moore, Tracy & Weaver, Richard R., 1994. "After the cash arrives: A comparative study of venture capital and private investor involvement in entrepreneurial firms," Journal of Business Venturing, Elsevier, vol. 9(1), pages 67-82, January.
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