Category FAQs Search : Start-up Businesses
Question: African American women entrepreneurs' experience obtaining financial capital for business start-up by Gaines, Ola M.Capella University
Answer: This qualitative research study used in-depth interviews with 20 African American women small-business owners from a wide range of sectors, education levels, and business and entrepreneur ages to understand African American women entrepreneurs’ experiences in attempting to procure financial capital for their small-business start-up phase, including their experiences and perspectives on the use of social capital and internal and external financing to obtain capital, and their challenges, advantages, and learnings in procuring this crucial resource. Embarking from the viewpoint that African American entrepreneurs are typically disadvantaged and trail all other groups of entrepreneurs, the study design was informed by an integration of the literatures of small businesses/entrepreneurship, education, leadership, and economics. The study’s findings revealed that these African American women entrepreneurs attempted to obtain bank and agency loans and the process progressed to using internal funds. They were motivated to obtain external capital, but in turn attempted to alleviate related challenges and use internal (personal and/or families’ and friends’) funds. Gender, ethnicity, and work/life balance constraints compounded their experiences. These African American women entrepreneurs placed strong emphasis on the support of self-empowerment and spirituality to cope with and manage the impact of these challenges. This study provides a detailed focus on the challenges, perspectives, and experiences as African American women start their own businesses. Further study in this area could contribute to a domain of more prepared and empowered women and minority entrepreneurs. Future studies may also expand upon recommendations provided to banks and their loan officers, agency loan administrators, and policy makers to enhance their efforts to help women and minority entrepreneurs.
(Source: Pustaka Negeri Sarawak, 30 Mar 2020)