For example, firms owned by blacks tend to be smaller (whether measured by assets, sales, or employment), newer, and more likely to be located in an urban area than their nonminority counterparts. Black-owned businesses also tend to be owned by younger individuals with fewer years of experience and poorer credit histories.
Finally, black-owned businesses are more likely to be sole proprietorships and in the services industry. Other differences between other minority-owned firms and white-owned firms have been identified, but they tend to be less pronounced. Clearly, many factors are considered in credit decisions.