Revised City of South Bend Disparity Study Report

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City of South Bend Disparity Study 2020 Minority entrepreneurs face challenges (including lower family wealth and dif- ficulty penetrating financial markets and networks) directly related to race that limit their ability to secure financing for their businesses. 157 3. Federal Reserve Board Small Business Credit Surveys The Development Office of the 12 Reserve Banks of the Federal Reserve Sys- tem have conducted Small Business Credit Surveys ("SBCS") to develop data on small business performance and financing needs, decisions, and outcomes. These surveys conclude that minority and female entrepreneurs face signifi- cant barriers to accessing commercial credit. a. 2016 Small Business Credit Survey The 2016 Small Business Credit Survey obtained 7,916 responses from employer firms with race/ethnicity information and 4,365 non -employer firms in the 50 states and the District of Columbia. Results were reported with four race/ethnicity categories: White, Black or African American, His- panic, and Asian or Pacific Islandec158It also reported results from woman - owned small employer firms, defined as firms where 51 percent or more of the business is owned by women, that compared the experiences of these firms with men -owned small employer firms. The 2016 Report on Minority -Owned Businesses The Report on Minority -Owned Businesses provided results for White-, Black- or African American-, Hispanic-, and Asian- or Pacific Islander - owned firms. Demographics The SBCS revealed that Black-, Asian-, and Hispanic -owned firms tended to be younger and smaller in terms of revenue size, and they were concentrated in different industries. Black -owned firms were con- centrated most in the healthcare and education industry sectors (24 percent). Asian -owned firms were most concentrated in professional services and real estate (28 percent). Hispanic -owned firms were most concentrated in non -manufacturing goods production and associated services industry, including building trades and construction (27 per- cent). White -owned firms were more evenly distributed across several industries but operated most commonly in the professional industry 157. Fairlie, R.W. and Robb, A., Race and Entrepreneurial Success: Black-, Asian- and White -Owned Businesses in the United States, (Cambridge: MIT Press, 2008). 158. When the respondent sample size by race for a survey proved too small, results were communicated in terms of minority vis -6 -vis non -minority firms. 84 © 2020 Colette Holt & Associates, All Rights Reserved.