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Research Article |

Examining the Relocation of Minority Businesses and Its Relationship with Gentrification and the Banking Industry

Gentrification involves the introduction of innovative business prospects. Bringing new and diverse residents to a community necessitates the emergence of novel businesses and the revitalization of existing ones, thereby fostering opportunities. To accomplish this, businesses old and new often need financial services from banking institutes. Banks provide small businesses with business-specific financial services that support small business owners in managing their money. Studies add that banks also provide business owners with checking account services, business credit, debit cards, merchant services, lines of credit, and business loans. When the right relationship exists, a business owner’s bank does more than hold their money. It serves as a vehicle to address immediate business needs and plan for the future. Banks are vital to the life and growth of small businesses. While banks have provided these services for new white-owned businesses entering gentrified communities, research has demonstrated that these offerings are altered when minority small businesses are engaged. The research has found that minority businesses experience various issues when seeking financial services from banking institutes. These issues include a higher percentage of loan denials as compared to their white counterparts and higher interest rates, to name a few. The research sought to gather data on these disparities, utilizing various studies from cities and states experiencing gentrification, linking this information with past and presenting banking practices towards minorities and their businesses. The research also sought to demonstrate the importance of minority businesses to their communities and the results when those minority businesses are denied financial services from banking institutes. Finally, the research demonstrates the tools and resources accessible to aid minority businesses in redeveloping and thriving as their communities undergo transformation during gentrification and in the subsequent phases.

Banking, Gentrification, Inequities, Minority Business, Lending Practices

APA Style

King, R. (2023). Examining the Relocation of Minority Businesses and Its Relationship with Gentrification and the Banking Industry. Science Journal of Business and Management, 11(4), 157-163. https://doi.org/10.11648/j.sjbm.20231104.13

ACS Style

King, R. Examining the Relocation of Minority Businesses and Its Relationship with Gentrification and the Banking Industry. Sci. J. Bus. Manag. 2023, 11(4), 157-163. doi: 10.11648/j.sjbm.20231104.13

AMA Style

King R. Examining the Relocation of Minority Businesses and Its Relationship with Gentrification and the Banking Industry. Sci J Bus Manag. 2023;11(4):157-163. doi: 10.11648/j.sjbm.20231104.13

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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