Colorism in Crowdfunded Microlending
Entrepreneurship research has identified that racial discrimination influences access to capital but it has not examined the role of colorism- a form of bias based on skin colour, irrespective of race. We leverage theory on colorism and stereotypes to develop arguments concerning how entrepreneurs' skin color might influence microloan funding and how this effect might differ on the basis of gender. We then examine how the tone of entrepreneurs' microlending narratives moderates the colorism-funding relationship. Broadly, our theorization and associated findings advance research on bias and discrimination against entrepreneurs of color, drawing attention to the setting-driven complexity of colorism.
Thomas Allison
Thomas H. Allison is an Associate Professor in the Department of Entrepreneurship and Innovation of the Neeley School of Business at TCU and an editor of Entrepreneurship Theory and Practice. An entrepreneur before earning his PhD from the University of Oklahoma, his research centers on entrepreneurial finance; novel forms of entrepreneurial resource acquisition, including crowdfunding; and the effects of narrative and rhetoric on investment decisions. His work has been published in Academy of Management Journal, Entrepreneurship Theory and Practice, Family Business Review, Journal of Business Venturing, Leadership Quarterly, Strategic Entrepreneurship Journal. He is a member of the Journal of Business Venturing Board of Review.