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Article
Publication date: 10 May 2011

Jana Bruder, Doris Neuberger and Solvig Räthke‐Döppner

The theory of small business finance predicts that ethnic minority‐owned businesses are more likely to be credit constrained in the start‐up process than are native‐owned…

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Abstract

Purpose

The theory of small business finance predicts that ethnic minority‐owned businesses are more likely to be credit constrained in the start‐up process than are native‐owned businesses. In Germany, empirical evidence for this issue is scarce because of missing data. This paper aims to address these issues.

Design/methodology/approach

The paper reviews previous studies and uses data from a survey of ethnic and native entrepreneurs in Germany that include detailed information about start‐up financing. The hypotheses were tested for differences in financial constraints using univariate analyses and apply multivariate regression models to identify the causes of credit constraints in start‐up financing.

Findings

The data provide evidence that entrepreneurs with an immigration background (“ethnic entrepreneurs”), defined as German residents who hold foreign citizenship or who were born outside Germany, are significantly more likely to be denied credit or to be awarded smaller loans than requested than are native entrepreneurs. However, the underlying reasons for this effect may be differences in risk factors and financial relationships, rather than ethnicity.

Research limitations/implications

The dataset consists of 234 observations. The results refer to the sample and might not be representative of ethnic minority start‐ups in general.

Practical implications

Apart from the risk factors observed in the study, communication problems and lack of information about possible sources of external financing may be relevant. Better communications between financial institutions and ethnic minority businesses may help to reduce the financing gap vis‐à‐vis native entrepreneurs.

Originality/value

This is the first examination of the financial constraints of ethnic entrepreneurship in Germany using univariate and multivariate analyses. Previous evidence has been limited to observations about possible discrimination against ethnic minorities and has not tested the significance of observed differences in access to credit.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 17 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 June 2003

Barbara F.H. Allen

Discusses collection building of contemporary German belles‐lettres and introduces 20 contemporary German‐language writers of the younger generation, presenting their…

Abstract

Discusses collection building of contemporary German belles‐lettres and introduces 20 contemporary German‐language writers of the younger generation, presenting their bio‐bibliographies. Librarians who are not already collecting these authors might consider expanding their German literature collections by adding some of the works listed.

Details

Collection Building, vol. 22 no. 2
Type: Research Article
ISSN: 0160-4953

Keywords

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