Transcript 0:00 North Carolina stands at a fork in the road in 2025. 0:04 The state has racked up quite a few accolades for its business environment, ranking as CNBC's top state for business two years running and Forbes' fifth best state to start a business. 0:16 But a deeper look at various studies surveying the state of North Carolina and businesses across the country reveal a complex reality, especially for Black entrepreneurs. 0:26 Despite North Carolina's desirable business environment, including an impressive 77% business survival rate, Black entrepreneurs face significant challenges. 0:38 While Black residents make up 20.5% of North Carolina's population, they represent only 13% of self-sufficient entrepre-- and this is a study that I looked at from NC IDEA in their 2024 State of Entrepreneur Report, and I believe when they say self-sufficient entrepreneurs, what they mean is full-time business owners. 0:58 And this is a disparity that raises some really important questions. 1:01 Perhaps the most telling statistic that I came across is that 96% of Black-owned businesses in the United States are solo operations, functioning without any paid full-time employees other than the owner/operator. 1:17 That's insane. I mean, it feels like it may be easy to start a business, but then we quickly reach a peak threshold as a one-person band, and that limits our ability to grow and have upward mobility. 1:30 And when I say grow, I mean, one, starting the ability to hire help, which is very needed. If you're a one-person business, you only have so much time, and so you're capped once you reach your max. 1:41 A lot of that, I think, really does come down to access to capital. I think it, on some level, has to do with the type of businesses we start. 1:49 If you're a service-based business, that's not a typical business that gets a lot of venture capital, outside investment, and it really can be hard to access loans or grants, for that matter. 2:02 And again, access to capital is really crucial for sustainable business growth. And I could go on about that. 2:09 That's a whole topic by itself, but rather than getting into that today, I would just encourage you to check out my previous episodes with the founders of Cadence Cash and Corey Barber. 2:19 We did an incredible roundtable, and we did a solo episode with Charles Enneking, who is the founder of Cadence Cash. So really encourage you to check those out. 2:28 In this report, I really just wanna focus on what this looks like on the ground from my perspective, and I would love to hear your opinion as well. 2:36 The closing of BU Cafe in downtown Durham and the suspension of Fearless Fund's grant program for women were two very impactful events for me last year, both locally and nationally. 2:49 BU Cafe closed in large part due to the ongoing construction downtown, which limited parking options. 2:55 So for people who wanted to come by and they just weren't naturally walking downtown, that presented a barrier to access. 3:03 And as well, over the pandemic, the city of Durham implemented paid parking garages, which were typically free after 5:00. 3:10 And so when you limit people's primary mode of transportation but then don't give them other options, viable options like biking and public transit, which is the bus, that makes it hard not just for customers, but also for people working for you. 3:24 If they have to pay to go to work and they're not making that much above minimum wage or whatever, like part of your check is going just to get to work, like that can be really, really hard for people. 3:35 And so with that decreased foot traffic and the city of Durham kind of not really trying to help them out, uh, because it was reported that they did reach out to the city of Durham, them and other business owners who were kind of feeling that decrease in foot traffic and decrease in customers, it didn't really sound like they tried to help them out, and BU Cafe closed their flagship store in 2024. 3:56 They do still have the airport location and the Boxyard RTP location, but neither of those locations serve food. They're mainly coffee. So that is a huge loss, I feel like. 4:06 I celebrated two out of my five, well, now six birthdays in Durham at BU Cafe, and I would love to see them come back somewhere in Durham. But that loss, in general to me, was kind of like a punch to the gut, really. 4:20 And not too soon after that, sorry, the Fearless Fund was attacked in accordance with the lawsuits on affirmative action and DEI policies at the national level. 4:30 At the federal level, we're seeing open attacks on Black-owned businesses, which hurts the overall economic output of not just Black people, but all people in the United States. 4:41 And while this isn't the sole responsibility of local and national governments, they have made it clear they won't fight for the institutions and organizations that, quite frankly, fill the gap where they cannot, providing sustainable opportunities for Black-owned businesses at every level, from part-time to full-time business owners. 4:59 It's not all bad, but we could be doing a lot more. North Carolina is home to M&F Bank, one of the few remaining Black-owned banks in the country that maintains physical locations. 5:10 They still have their original location down on Parrish Street, which is Black Wall Street in Durham, and that's incredible to see, but I would love to see them be doing a lot more. 5:21 The state's culinary scene offers another glimpse of potential with 12 North Carolina chefs and restaurants, including four in Raleigh, earning James Beard Award nominations in 2024, and that was across all different types of cuisines and people, and it was just so beautiful, and it's always great to see North Carolina be represented on such a high stage, because it really is a reflection of the diversity of people and cultures here in this state. 5:47 While North Carolina has a relatively friendly cost of living, I've seen the cost of housing rise substantially since I moved here in 2019. 5:55 While 65% of its population is of working age, the state consistently ranks among the worst for working families. 6:04 This dichotomy is tied to limited worker protections under right-to-work laws High childcare costs that strain family budgets, and the absence of paid maternity leave policies. 6:15 So while there are a ton of new potential business owners, new and current business owners alike have to factor in that a significant portion of their income will go towards childcare, and that's in addition to the rising cost of housing and business operations expenses that are simply unavoidable. 6:32 From what I can tell, there's a lot of trauma around the history of Black entrepreneurship in North Carolina. Wilmington has been burned down. 6:40 Durham's Black Wall Street is a remnant of what was a hub for Black businesses across the South back in the day, and Charlotte has about 5% of its total businesses owned by Black residents, despite them making up almost 35% of the city's population. 6:57 And Charlotte, for people who are not familiar, is one of the biggest metropolises in North Carolina. 7:02 The NC Mutual building sold not too long ago, and that building was home to one of the most influential Black-owned insurance companies of its time. 7:10 I think a lot of the healing, growth, and sustainability around Black businesses in North Carolina is tied directly to infrastructure investments, both financial and physical. 7:21 We've got to reconnect neighborhoods through more biking, cycling, walking, and bus transit, and invest in resources available to those neighborhoods. 7:30 North Carolina's ability to maintain its business-friendly reputation is going to depend on its ability to create more inclusive opportunities for Black entrepreneurs and better conditions for working families. 7:42 Google, Apple, and Nike are headed to The Triangle, and there's probably a new startup out of Wilmington being funded with venture capital right now as I'm talking. 7:51 The challenge lies not just in maintaining North Carolina's attractive business environment, but in ensuring that this prosperity reaches all communities equitably, particularly those historically underserved in the entrepreneurial space. 8:05 To create a more supportive environment for Black entrepreneurs with families, North Carolina and other southern states would have to subsidize childcare programs for small business owners, and I say this as a fully childless adult. 8:19 I do not care if my taxes go toward taking care of kids. North Carolina has done a lot with some targeted grant programs specifically for Black-owned businesses. NC IDEA has been a part of that. 8:30 Uh, the Carolina Small Business Development Center has been a part of that. But I think they're gonna have to do a lot more, and local municipalities and regional hubs are gonna have to also chip in. 8:41 Co-working spaces have been really near and dear to me as a small business owner, and I think co-working spaces with integrated childcare facilities might be the next move. 8:51 I've said it once, and I'll say it again, improving public transit to business districts and business hubs, that's gonna be crucial, and really putting them also in Black neighborhoods, putting business incubators in Black neighborhoods. 9:03 I know that there have been some attempts to do that, and they didn't maybe last very long, um, but I hope that Black people who are starting these initiatives and Black entrepreneurs who really wanna do good continue not to be discouraged and continue to try and work with their local governments to make it happen because, quite frankly, it's not just up to them. 9:21 It really should be the entire community supporting them because they are filling a gap where many local governments and state governments cannot. 9:29 And last but not least, and I'm saying this as somebody from the South, I think we saw over the pandemic that internet access is not as widely accessible as we may think it is living in the city and, or in the suburbs, and so we really need internet access widely available across the state, especially in rural areas. 9:48 All these people that love coming online and saying, "Oh, all you need is a laptop." 9:52 No, all you need is a stable internet connection, [laughs] and a lot of people, unfortunately, don't have that, so we really do need that. 9:59 Digital access, digital health is so important, and it's imperative if we're going to not just make this accessible for people who live in the city, but for everybody across the state of North Carolina. 10:09 So that's just my quick rundown. Those are just my thoughts and opinions on the state of Black business in 2025. I think there are some incredible gaps in our ecosystem, 10:21 but there is a path forward to close those gaps, slowly but surely, with really intentional effort and conversations about what's needed for Black business owners. I would love to hear your thoughts. 10:33 Thank you so much for listening. I'll catch you guys tomorrow in the next episode. [upbeat music] If you've been getting value from Honey & Hustle, I need a quick favor. 10:44 Would you take 30 seconds right now to leave a review? Reviews help other people discover the show, and honestly, they help me know what's landing with you. 10:54 Whether it's this episode or one from a few months ago that stuck with you, just share what made it worth your time. You can leave a review wherever you're listening right now, and I appreciate it in advance. 11:05 See you in the next episode. [upbeat music]
