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October 01, 2003
Credit Patterns of Small Business
The SBA has released a study on the credit patterns of small business. 80% of small businesses reported using credit of some sort for their businesses. 56% of credit outstanding was through banks. This stresses the importance of understanding how to secure a loan and how to manage a banking relationship.
An interesting finding is that women and minority entrepreneurs were more likely to fund their businesses with credit cards. This is a high risk strategy, as this creates a high rate of interest and personal exposure to any failure. It is an important policy question to examine why the pattern of borrowing is different for these groups.
Posted October 1, 2003 07:05 PM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
