Research
Malone Unlimited is grateful for the broader ecosystem organizations and their research on equitable small business growth. The following are some of the papers we learned from and incorporated in designing our solutions for the South.
Ecosystem Learnings
Small Business Landscape
Small Business Capital: A Place-Based Approach
From Accelerator for America and International Economic Development Council
“In the absence of a growing, inclusive local economy that generates sufficient resources to meet community needs, place-based philanthropies are often called upon to fill the void by supporting health, human services, food access, and other critical resources. “
This paper discusses the need for capital and ecosystem support for small business growth. It shares models for partnership and examples from St. Louis and Atlanta.
Also check out Equitable Entrepreneurial Equitable Entrepreneurial Ecosystems: Lessons from the Field
Sizing the Impact Investment Market 2024
From GINN
“In 2024, impact investing is well-positioned to capitalize on this momentum as the urgency for action on social and environmental problems is mounting. The current pace of capital allocation towards the sustainable development goals is far from sufficient to mitigate the worst effects of climate change and global inequality, but we can reverse this trend by engaging more investors, more capital and working together in new ways.”
Community Based Lending using a Racial Equity Lens approach
From California Small Business Coalition for Racial Justice
“The New Cs of Credit” – an alternative
system to evaluate creditworthiness with a racial justice lens based on character, commitment, conditions and capacity.”
Of the 128 businesses funded using this new underwriting criteria, 75% were BIPOC-owned, 56% women-owned with a default rate of 2%.
Behind the Scenes: Building a Character-based Lending Fund
From Common Future
“Can lending be different? Do people need fancy training to spot credit-worthy businesses and make loans that perform? I don’t know, but I’d bet on the answer.”
Behind the Scenes: Building a Character-based Lending Fund
From The Inclusive Capital Collective
This paper discussed the commonly used 5 C framework for lending, who it benefits and who it excludes. It invites us to reexamine how we lend to make capital access more inclusive to benefit the communities we live in.
Exponential Value: A Study on Societal Value of Women-Led Businesses
From EY
“Integrating profits and purpose matters to women.”
This paper discusses “Women-owned businesses that secure funding show better
returns on investment (ROI) and tend to be in business longer than those owned or founded by men. What’s more: they purposefully develop goods and offer services that seek to make life better for everyday people.But year after year,
and decade after decade, the world is losing out on the full lift of that potential. Why?”
Women’s Small Business Ownership and Entrepreneurship Report
From U.S. Senate Committee on Small Business & Entrepreneurship
“Women in particular have been the driving force behind America’s economic rebound from the COVID-19 pandemic, creating about half of new businesses for the third year in a row.3 Women of
color, specifically Black women, have had a tremendous impact on the post-pandemic
economy with the number of Black-women-owned employer businesses increasing to
around 18 percent from 2017-2020, compared to a 9 percent increase in the number of
women-owned businesses.”
Despite impressive statistics, women continue to face challenges with access to capital, childcare access and affordability and mentorship opportunities.
From Crisis to Opportunity: Financing for Underserved Small Business since COVID-19
From FinRegLab
“Female business owners also face higher rates of denial when applying for funding, even when financial factors are accounted for.”