[Journal:] Journal of Entrepreneurial and Small Business Finance [ISSN:] 1057-2287 [Volume:] 5 [Year:] 1996 [Issue:] 2 [Pages:] 175-191
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.
Entrepreneur Foundations Neighborhoods Community Development