Investing in Neighborhood Entrepreneurs: Private Foundations as Community Development Venture Capitalists

Ross Gittell, Jeffrey Sohl and Phillip Thompson
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Ross Gittell: University of New Hampshire
Jeffrey Sohl: University of New Hampshire
Phillip Thompson: Columbia University

Journal of Entrepreneurial Finance, 1996, vol. 5, issue 2, 175-91

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.

Keywords: Entrepreneur; Foundations; Neighborhoods; Community Development (search for similar items in EconPapers)
JEL-codes: G24 L31 M13 (search for similar items in EconPapers)
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:pep:journl:v:5:y:1996:i:2:p:175-91

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