Small business financing profiles: Visible minority entrepreneurs

Visible minority-owned small and medium-sized enterprises (SMEs) are similar in size to firms
owned by other entrepreneurs. They tend to be concentrated in the service and knowledge-based sectors and they play an
important role in several of Canada’s regional economies. Visible minority-owned SMEs exhibit similar debt-financing activity to other businesses. Their demand and approval for and terms of obtaining credit are similar to other firms. Their capital and
debt structures, however, indicate slightly higher than average usage of informal financing tools such as personal savings and
love money from friends or relatives, a pattern that may be more in line with the sector of operation of the firm than its owners’ characteristics.

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