Transcript 0:00 At the 2024 Startup Champions Network event in the Shenandoah Valley of Virginia, I was really surprised by this statistic. 0:07 The success of student entrepreneurs depends largely on the entrepreneurial ecosystem in their community. 0:13 So how can colleges cultivate sustainable and supportive relationships between local small business owners and students? I particularly wanna look at HBCUs and their role in growing the pipeline of Black business owners. 0:28 Historically, Black colleges and universities have long served as catalysts for Black excellence and economic empowerment. Their role in fostering Black entrepreneurship extends far beyond the classroom. 0:41 HBCUs play a crucial role in developing the next generation of Black business owners through specialized entrepreneurship programs and courses, mentorship opportunities with successful Black business owners, access to seed funding and business plan competitions, and networking events with industry leaders who reflect their experiences. 1:01 Now, I didn't attend an HBCU, but I was pleasantly surprised at the student entrepreneurship initiatives I found when I began writing this episode, and these are in no particular order, so please don't come for me in the comments. 1:15 Florida A&M has a small business development center that partners with Black-owned businesses to provide internships and mentor opportunities for students interested in starting their own business. 1:27 Hampton University has a center for entrepreneurial studies that connects students with successful alumni entrepreneurs, provide guidance and real-world business insights. 1:37 North Carolina's own A&T has an entrepreneurship living learning community which creates a residential environment where student entrepreneurs can collaborate, share ideas, and develop business plans together. 1:51 Prairie View A&M's community development program works closely with Black-owned businesses to provide student counseling services and technical support. 2:01 These programs demonstrate how HBCUs can create meaningful connections between students and local business communities, fostering practical entrepreneurship experience and community development. 2:12 Fostering entrepreneurial mindsets in students through business incubators, accelerator programs, student-run businesses on campus, internship programs with Black-owned businesses, and innovation labs and maker spaces can truly accelerate what students feel can be possible after graduation, whether or not they decide to start their own company. 2:33 For those that want to start their own businesses, there are many HBCUs that have created support systems that nurture student entrepreneurs from idea conception to business launch. 2:43 Howard University, Morehouse College, Morgan State University, and Spelman College all have areas on campus that are dedicated to helping students go from idea to launch, whether that's through startup competitions, mentorship programs, access to venture capital networks, or access to maker spaces. 3:03 I've even had the pleasure of speaking at Savannah State University with their arts administration class for people who want to learn the business of creativity, so they have a special place in my heart. 3:14 Support systems can vary in size and scope, but the overall mission remains the same. 3:20 Whether they're creating partnerships with local chambers of commerce or providing opportunities to collaborate with venture capital firms and angel investors, these institutions are creating robust networks that support both student entrepreneurs and established business owners. 3:35 The goal is to build sustainable ecosystems where knowledge, resources, and opportunities flow freely between academic and business communities. 3:43 I've always been a little skeptical about getting a degree in entrepreneurship or business because nothing can replace the real-world experience of trying to build a business from scratch, and from what I can tell, many universities don't hire people who are active business owners. 3:58 They mainly hire people who've gotten a degree by studying businesses. But I do think universities are trying to bridge the gap between academic learning and practical business development experiences. 4:10 So why am I focusing on HBUs specifically, and what does the relationship between historically Black colleges and Black entrepreneurship mean for communities? 4:20 Looking at the data, HBCUs have an incredibly outsized impact on Black entrepreneurship and professional development. 4:27 While HBCUs represent only about 3% of America's colleges and universities, they produce almost 20% of all Black college graduates. 4:37 HBCUs have produced about 40% of all Black members of Congress and 40% of all Black engineers. 4:45 According to the United Negro College Fund, HBCUs graduate nearly 50% of Black faculty at all US colleges and universities and create 134,000 jobs in their local and regional communities. 5:00 HBCU graduates account for roughly 25% of Black business owners with bachelor's degrees. What's not represented in these numbers? 5:08 The huge opportunity gap for HBCUs, when well-funded, to be the largest driver of Black-owned business creation. 5:17 HBCUs play an unfulfilled role in creating pathways to business ownership and professional success in the Black community, with seven times less endowment funding than predominantly white institutions. 5:29 Despite representing a small percentage of higher education institutions, they consistently produce a disproportionate share of Black professionals and entrepreneurs. 5:39 The lack of investment in HBCUs is a topic I'm far from the first to bring up. 5:44 But when the numbers show the return on investment is $1.44 for every dollar invested into an HBCU and that rural and urban communities alike surrounding these colleges have higher job growth, it begs the question of how we frame this conversation. 6:01 How can we still pour eons of money into startups that raise venture capital when 75% of them fail? 6:09 I may be asking for a fundamentally different way that investors view interest and returns, but I think a model exists that we can expand upon. 6:18 Pooled endowments, such as the one initiated by the United Negro College Fund that's seeking to raise $370 million, 6:26 provide investors with a safer strategy for getting a return while increasing their potential impact on an HBCU. 6:34 I would love to see more HBCUs working together to increase their earning potential and hiring more risk management staff to make this option more appealing. 6:43 I will always proclaim that there's more room for storytelling about the continued good that HBCUs do for students and their surrounding communities, and this may be an effort that gets placed on alumni networks, but with so many HBCU graduates being loud and proud about their love for their alma maters, I don't think this will be too hard to accomplish. 7:01 There's a huge gap for Black entrepreneurial ecosystem development, and I'm presenting a huge goal. 7:07 But I think we have to start somewhere in creating a culture of transparency and financial support that favors institutions that are creating an incredible impact with seemingly smaller resources than their counterparts. 7:20 These are just my thoughts and opinions. I would love to hear what you think the first step should look like. 7:26 If you made it this far in the episode, please take a moment to leave me a review and tell me how I'm doing at this podcast thing. 7:32 I'm a little over halfway through this monthly challenge, and trust me, it's been a challenge, but I'm excited to see how I feel on day 28. I'll catch you in the next episode. 7:42 [outro music] If you've been getting value from Honey and Hustle, I need a quick favor. Would you take 30 seconds right now to leave a review? 7:52 Reviews help other people discover the show, and honestly, they help me know what's landing with you. Whether it's this episode or one from a few months ago that stuck with you, just share what made it worth your time. 8:05 You can leave a review wherever you're listening right now, and I appreciate it in advance. See you in the next episode. [outro music]
