The ethnic and gender structure of investment boards is directly connected to the investment decisions they make, particularly on the subject of funding companies directed by people of color or women business owners, in keeping with a new research released by the U.S. Small Business Administration.

Maria Contreras-Sweet, SBA Administrator emphasized the significance of the findings, stating in a press release, “I’ve made it a priority as SBA Administrator to make sure that businesses owned by women and minority owned businesses are able to reach their full potential. I understand some of these obstacles personally.

Regrettably, startup businesses owned by women and minorities frequently experience an even more overwhelming challenge evaluating the capital they need to develop and grow. This research substantiates that challenge however it also suggests that we can develop opportunity and increase our general financial strength by means of making sure more women and minority owned businesses are in a position to make major funding decisions.”

SBA Association With LinkedIn

Maria Contreras-Sweet also introduced a brand new public-private partnership with LinkedIn and some other organizations referred to as Open Network for Board Diversity. This partnership will work to amplify the presence of minority owned businesses on high growth small business advisory boards, boards of directors, and increase diversity in small business leadership, especially for the ones supported by Small Business Investment Companies. This new partnership is intended to build diversity on corporate and investment forums and filling the investment gap for minorities and women business owners.

Almost 450 million members and even over 2 million businesses using its service, LinkedIn is able to provide a platform to organize companies and leaders devoted to increasing access for various candidates to join boards, consistent with press statement. Active members of the institution are expected to get assistance from exposure to SBICs and member institutions as well as statistics and insights shared by other members of the group. As a community-led initiative, partner corporations are to assist curate related content and encourage participation.

Ethnic and Gender Funding Structures

The intention of the research was to find answers to difficult questions on the subject of lending patterns to women and minority-owned businesses and ROI for SBICs. The research was carried out by John Paglia, professor of finance at Pepperdine Graziadio School of Business and Management; and David Robinson, professor of finance at Duke University Fuqua School of Business, senior research strategist on the Duke Innovation & Entrepreneurship Initiative, and advisory board member for the Private Equity Research Consortium.

Paglia stated in a press statement that “there is still a lot more to do; however this research indicates that women and minorities at small business investment firms play an imperative role in covering a business lending gap to women and minority-owned small businesses”. Figuring out these associations at the investment firm level facilitates to fill that gap, and we are privileged to lend our expertise in private capital and finance to this vital effort to promote diversity in small business financing.”

Small Business Financing News │ Merchant Advisors | blog
SBA Associates With Silicon Valley To Close The Investment Gap For Minority Businesses
SBA Associates With Silicon Valley To Close The Investment Gap For Minority Businesses
Looking for funding to fund your small business? The road ahead is full of twists and turns because it does require a lot of time and research to locate the best funding program that suits your business. Due to theRead more
According to a study by SBA, the ethnic & gender structure of investment board is directly connected to the investment decisions particularly for minorities
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