The Real Reason Minority-Owned Businesses Aren't Getting Funded [Forbes]
Morgan Stanley (MS)
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Source: Forbes
Photo credit: Getty Getty A new report released by Morgan Stanley today found that the majority of investors and bank loan officers do not think there is a funding imbalance for women and minority-owned businesses (WMBEs) in the United States. Specifically, 80 percent of respondents believe that WMBEs get the amount of capital that they deserve to run and grow their businesses. However, this belief does not align with the reality of the investments being made. In fact, investments in WMBEs are 80 percent lower than the median investment in businesses overall. This means that investors have a large blind spot when it comes to how they are investing in these businesses. But why is that? Investors Are Less Exposed to Minority-Owned Businesses and Don’t Seek to Diversify Candidates Over 40 percent of investors said that they “very frequently” review businesses led by men. Thirty-six percent of investors said the same about businesses led by non-minori
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