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City of South Bend Disparity Study 2020 <br />Table 5-7: Business Earnings Differentials for Selected Groups Relative to White <br />Men <br />All Industries <br />Demographic <br />Black <br />-54.0% <br />Latino <br />-59.1% <br />Native American <br />-572.0%* <br />Asian/Pacific Islander <br />3.5% <br />Other <br />55.3% <br />White Women <br />-77,9%*** <br />Source: CHA calculations from the American Community Survey <br />*** Indicates statistical significance at the 0.001 level <br />* Indicates statistical significance at the 0.05 level <br />D. Evidence of Disparities in Access to Business Capital <br />Capital is the lifeblood of any business. Participants in the anecdotal data collec- <br />tion universally agreed to this fundamental fact. The interviews with business <br />owners conducted as part of this Study confirmed that small firms, especially <br />minority- and woman -owned firms, had difficulties obtaining needed working cap- <br />ital to perform on City contracts and subcontracts, as well as expand the capacities <br />of their firms. As discussed above, discrimination may even prevent firms from <br />forming in the first place. <br />There is an extensive body of scholarly work on the relationship between personal <br />wealth and successful entrepreneurship. There is a general consensus that dispari- <br />ties in personal wealth translate into disparities in business creation and owner- <br />ship.151 These results strongly suggest that MBEs do not enjoy full and fair access <br />to the credit necessary to perform on City prime contracts and associated subcon- <br />tractors. <br />151. See, e.g., Evans, David S. and Jovanovic, Boyan, "An Estimated Model of Entrepreneurial Choice under Liquidity Con- <br />straints," Journal of Political Economy, (1989); Evans, David S. and Leighton, Linda "Some empirical aspects of entrepre- <br />neurship," American Economic Review, (1989). <br />0 2020 Colette Holt & Associates, All Rights Reserved. 81 <br />