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Low-Wealth Minority Enterprises and Access to Financial Resources for Start-Up Activities

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  • Colleen Casey

Abstract

The role new start-ups may play in the economic recovery has been thrust into the political limelight, with a number of policy makers and advocates calling for network interventions to stimulate and foster an environment conducive to their growth and development. However, the design and implementation of these policies may have differential effects for low-wealth minority enterprises. In this article, the author draws on social resource theory to conceptualize the effects of social networks on access to financial resources. The findings suggest that disparities do exist among low-wealth minority enterprises in the amount of social resources they possess as well as in the formal financial resources obtained. Low-wealth minority enterprises that do obtain a higher level of formal financial resources have upward connections to those that possess greater social resources. The research has implications for the design and implementation of policies geared toward low-wealth minority entrepreneurs.

Suggested Citation

  • Colleen Casey, 2012. "Low-Wealth Minority Enterprises and Access to Financial Resources for Start-Up Activities," Economic Development Quarterly, , vol. 26(3), pages 252-266, August.
    • Handle: RePEc:sae:ecdequ:v:26:y:2012:i:3:p:252-266
    DOI: 10.1177/0891242412452446
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    References listed on IDEAS

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    Cited by:

    1. Janet Hammer & Gary Pivo, 2017. "The Triple Bottom Line and Sustainable Economic Development Theory and Practice," Economic Development Quarterly, , vol. 31(1), pages 25-36, February.
    2. Zhang, Yanlong & Zhou, Xiaoyu & Lei, Wei, 2017. "Social Capital and Its Contingent Value in Poverty Reduction: Evidence from Western China," World Development, Elsevier, vol. 93(C), pages 350-361.
    3. Zhang, Yanlong, 2015. "The contingent value of social resources: Entrepreneurs' use of debt-financing sources in Western China," Journal of Business Venturing, Elsevier, vol. 30(3), pages 390-406.

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