Trump’s anti-immigrant rhetoric disrupted crowdfunding for minority entrepreneurs. According to research by William Kerr, as public anxiety about immigration increases, it becomes more difficult for black, Asian, and Hispanic inventors to raise funds for new ideas on Kickstarter. What can platforms do to combat bias in corporate finance?
What does the immigration scare have to do with crowdfunding for new ideas on Kickstarter?
For black, Asian, and Hispanic entrepreneurs, such rhetoric can undermine fundraising efforts, making new ideas, says Harvard Business School professor William Kerr. even less likely to materialize. In a new paper, Kerr and colleagues explain how discrimination affects fundraising and how crowdfunding sites, entrepreneurs, and investors can act. Minority business founders often face a fundraising disadvantage compared to their white counterparts, but that gap triples during a time of public anxiety about immigration to the United States.
“WHEN WE ARE MOST worrisome, WE SEE THIS FUNDURE.”
Banks have consistently turned down loan applications from Black, Asian, and Hispanic small business owners at a higher rate than whites, according to Federal Reserve data. , which could potentially lead to some alternative funding sources, like Kickstarter and other crowdfunding sites. The decline in support seen in Kerr’s study was nationwide, occurring in cities like Seattle and New York, known as progressive strongholds, as well as more conservative localities. Trump’s Anti-Immigrant Rhetoric Disrupted.
Anxiety
“When anxiety is greatest, we see funding shortages,” says Kerr, D’Arbeloff Professor of Business Administration. He co-authored the paper with John (Jianqui) Bai, associate professor of finance at Northeastern University, and Chi Wan and Alptug Yorulmaz, associate professor and graduate research assistant at UMass Boston, respectively. Measuring Fear in the Trump Era. The paper takes a close look at two different datasets. The first is the Migration Fear Index, which calculates the number of articles that include at least two terms relevant to the immigration debate, such as “migrant, refugee, refugee” and “human trafficking”. “, as well as “anxiety, panic, bomb, crime, terror, anxiety, concern” and “violence”.
Kerr and his associates then compared the quarterly volatility of the Migration Fear Index from 2009 to 2021 with the fundraising effort of minority entrepreneurs on Kickstarter, which raised $7.3 billion for popular projects such as opening restaurants and publishing comic books.
“YOU CAN COMPARISON IN THE SAME YEAR AND FIND THE CONNECTION BETWEEN MARRIAGE TRAINING AND THE BIGGEST DIFFERENCE IN MONEY BREAKING FOR MINORITY CREATORS.
The Fear Index soars when former President Donald Trump, with his anti-immigrant rhetoric, launched his first campaign in 2015 and continued to speak out against immigrants throughout his first year in office. . Research shows that in general, minority entrepreneurs are less likely to hit their fundraising goals during times of high immigration anxiety 바카라사이트.