Critical Connections: The Importance of Community-Based Organizations and Social Capital to Credit Access for Low-Wealth Entrepreneurs. (May 2014)

• Record Type: Journal Article
• Authors: Casey, Colleen
• Is Part Of: Urban affairs review. Volume 50:Number 3(2014:May)
• Page Start: 366
• Page End: 390
• Publication Date: 2014-05
• Subjects: social capital -- entrepreneurship -- credit access; City planning -- Periodicals; Aménagement urbain; Développement urbain; Planification urbaine; Politique urbaine; Recherche; Sociologie urbaine; Urbanisme; Ville; États-Unis; Périodique électronique (Descripteur de forme); Ressource Internet (Descripteur de forme); 307.76
• DOI: 10.1177/1078087413508915
• Languages: English
• ISSNs: 1078-0874

Abstract

This article studies the relationship between linking social capital and credit access for low-wealth entrepreneurs. I argue that the support provided by community-based organizations facilitates critical linkages to credit access for low-wealth entrepreneurs. Data on nascent firms engaging in start-up efforts in the United States in 2005 from the Panel Survey of Entrepreneurial Dynamics II (PSED II) are used to test the effects of government, bank, and community-based organization supports. The results suggest that government support has a positive effect for entrepreneurs overall. However, among low-wealth entrepreneurs, support provided by community-based organizations significantly increases access to credit for start-up activities.