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Minority entrepreneurs in bankruptcy

Data from this empirical research study, based on bankruptcy petitioners from the United States Bankruptcy Court in the Central District of California, however, do not support the hypothesis that minority entrepreneurs are overrepresented in the bankruptcy population. The data suggest that the challenges faced by minority entrepreneurs in the general population are mirrored by minority entrepreneurs in the bankruptcy sample. Minority entrepreneurs in the bankruptcy sample reported the same inferior human capital they report in the general population. Similar to the circumstances outside of bankruptcy, minority entrepreneurs in the bankruptcy sample were financially more fragile than their non-minority counterparts, with substantially lower levels of income and assets. Lastly, just as minority entrepreneurs outside of bankruptcy have less access to debt, they reported less debt in bankruptcy as well.

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