Abstract
Entrepreneurs in low-income and minority neighborhoods encounter numerous problems in securing capital. To address this capital gap this paper considers a new role for private foundations as community development venture capitalists (CDVCs). It is suggested that through grant making and program-related investments, foundations may assume an equity stake in neighborhood-based entrepreneurs and acting as CDVCs apply lessons from the value-added component of private equity financing, including drawing on their expertise, professional contacts and financial resources to contribute to entrepreneurial efforts in the inner city.
JEL Codes
G24, M13, L31
Keywords
Entrepreneur , Foundations, Neighborhoods, Community Development
Recommended Citation
Gittell, Ross; Sohl, Jeffrey; and Thompson, Phillip
(1996)
"Investing in Neighborhood Entrepreneurs: Private Foundations as Community Development Venture Capitalists,"
Journal of Entrepreneurial and Small Business Finance:
Vol. 5:
Iss.
2, pp. 175-191.
DOI: https://doi.org/10.57229/2373-1761.1189
Available at:
https://digitalcommons.pepperdine.edu/jef/vol5/iss2/6
