arbiter
JournalsAccount

The Role of Community Development Financial Institutions in Supporting Inclusive Economic Development

Evan Johnson et al.

Economic Development Quarterly2025https://doi.org/10.1177/08912424251323208article
ABDC B
Weight
0.37

Abstract

While prior scholarship examines the relationship between community development financial institutions (CDFIs) and economic development, little is known about their effectiveness and impact on cultivating inclusive urban entrepreneurship. The authors contend that greater attention directed toward young firms’ persistent needs for early resource acquisition, coupled with increased emphasis on the activity among business owners from minoritized groups, can extend the extant literature in a more inclusive manner. To do so, the authors trace the diffusion of CDFIs across the United States between 2013 and 2021 to examine their association with underrepresented minority-owned and/or young firms. One finding is that the presence of CDFIs bolsters the share of minoritized firms at the city level. Further, the authors find that this positive relationship holds for young firms owned by minoritized groups. The empirical results are contextualized with a case study of a nonprofit community bank seeking CDFI certification. This example highlights the importance of providing business assistance and financial capital to urban entrepreneurs.

1 citation

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1177/08912424251323208

Or copy a formatted citation

@article{evan2025,
  title        = {{The Role of Community Development Financial Institutions in Supporting Inclusive Economic Development}},
  author       = {Evan Johnson et al.},
  journal      = {Economic Development Quarterly},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1177/08912424251323208},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The Role of Community Development Financial Institutions in Supporting Inclusive Economic Development

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.