Have you ever backed a restaurant project on Kickstarter? It’s more than just supporting a dream. It’s a vote of confidence in someone’s vision. But what happens when you add factors like race, social movements and perceived bias to the mix? A fascinating new study by Mao Clark, Koh, DeFranco and Back explores exactly that in the International Journal of Hospitality Management.
From 2010 to 2020, researchers analyzed nearly 2,700 restaurant crowdfunding campaigns and uncovered a troubling pattern. African American restaurateurs were dramatically less likely to succeed than their peers. In the decade preceding the rise of Black Lives Matter, their funding success lagged by over 70 percent.
Then everything changed in 2020. With the Black Lives Matter hashtags appearing on Kickstarter and a wave of public solidarity, the success rate for Black led restaurant projects nearly quadrupled. It wasn’t just louder voices. It was a signal that support could overcome hidden bias and shift behavior.
This isn’t just data. It’s a story about how collective awareness can reshape financial landscapes. Crowdfunding wasn’t a magic fix. It was a mirror revealing the depth of both disadvantage and resilience in Black entrepreneurship. It also highlights how platforms shape outcomes. When Kickstarter took a stand, it changed minds and wallets.
Imagine being a Black chef with a great concept but limited access to traditional loans. Now, suddenly, social momentum aligns with your campaign, helping bridge that gap. It’s not perfect or permanent, but it is powerful. And it shows how crowdfunding can be a channel not only for capital but for social change, especially when the tools themselves reflect collective values.
This research has clear lessons for founders, marketers and platform builders. Founders can build momentum by aligning with movements empowering creators of color. Platforms can boost equity by elevating inclusive messaging and partnerships. And policy makers might take cues from how nonprofit crowdfunding surges can catalyze real economic shifts.
Dive Deeper into the Research
Title: African American Restaurateurs’ Financing Behaviors: A Grounded Theory Approach
Authors: Xiaodan Mao Clark, Yoon Koh, Agnes DeFranco & Ki-Joon Back
International Journal of Hospitality Management, 2023
Read it via Elsevier – https://www.sciencedirect.com/science/article/pii/S0278431923000464?via%3Dihub