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Financing Patterns of Minority-Owned Small Business
Journal of Small Business Strategy
  • Howard E. Van Auken, Iowa State University
  • Hayward Horton, Iowa State University
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This study examines the initial, seasonal, and refinancing characteristics of 67 minority business owners. The results are compared to the financial characteristics of women-owned and mixed ownership small firms. Minority-owned firms are found to rely primarily on equity to finance initial operations. Minority business owners' initial debt was commonly obtained through Small Business Administration (SBA)guaranteed loans and government grants. A very large percent of the minority business owners who acquired debt were required to provide numerous supporting documents. The results indicate that minority firms that experienced difficulty in obtaining initial capital continue to experience financial problems relating to operations.

This article is from Journal of Small Business Strategy 5 (1994): 31.

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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Van Auken et al
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Howard E. Van Auken and Hayward Horton. "Financing Patterns of Minority-Owned Small Business" Journal of Small Business Strategy Vol. 5 Iss. 2 (1994) p. 31 - 44
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