While personal and family savings are the primary source of startup capital across all U.S. demographics, the Kauffman report goes further to examine how specific ethnic groups rely on various financing sources. A larger proportion of Asian-owned businesses rely on personal and family funds than any other demographic. To the contrary, a greater percentage of white entrepreneurs rely on business loans from banks than any other group, and a greater percentage of black entrepreneurs rely on personal credit cards than any other group.

After launching, the majority of startups surveyed claim they didn’t seek additional funds — but that doesn’t mean they didn’t need them. Many avoided further financing because they did not want to accrue debt and thought their business would not be approved by lenders. Of these businesses who avoided subsequent funding, whites and American Indians were more likely to have debt worries, while native Hawaiians and blacks were most deterred by anticipated rejection from lenders.