Black-owned businesses are booming.
Companies like Calendly, SheaMoisture, and Esusu Financial contribute more than $206 billion annually to the economy, support 3.56 million American jobs, and are among the more than 100 Black-owned startups that have become unicorns, valued at over $1 billion. Multi-million dollar acquisitions like Compass Diversified’s purchase of The Honey Pot highlight the growing economic power of Black-owned businesses. While headlines celebrate these successes,As a matter of coursed — they remain the exception, not the norm. Despite the surge in Black entrepreneurs, a significant funding gap still exists, with roughly 71% of Black-owned startups being denied VC funding compared to just 12% of white-owned startups.
Evaluating success through an oppressive historical context can distort perspective. Surpassing benchmarks set under discriminatory conditions is a flawed measure that requires a broader assessment. By comparison, only 1% of Black business owners were able to obtain a loan in their founding year, compared to 7% of White business owners. According to Federal Reserve data, Black business owners’ loan applications are rejected at more than twice the rate of Whites, and when they do receive financing, they face higher interest rates, 7.8% on average, compared to 6.4% for Whites. These financing disparities paint a disturbing picture behind the celebrated growth of Black businesses.
Recognizing these challenges, PNC Bank and Howard University joined forces to create the Howard University & PNC National Entrepreneurship Center, a groundbreaking initiative aimed at closing the funding gap and supporting Black entrepreneurs through a variety of programs and resources. Leveraging the strengths of both institutions, PNC, one of the largest diversified financial services institutions, brings significant capital and expertise, while Howard University, a prestigious HBCU, offers unmatched academic excellence and deep commitment to the Black community.
Leaders from Howard University and the PNC National Entrepreneurship Center, Erin Horne McKinney (national executive director) and Dr. Johnny Graham (associate regional director), will dive deeper into what Black entrepreneurs need, how the initiative seeks to support them, and what attendees can expect from the upcoming Black Commerce: The Future of Entrepreneurship conference.
An Ecosystem for Black Entrepreneurs
The Howard University-PNC National Entrepreneurship Center extends beyond the Howard University campus to leverage a regional structure with four major HBCUs: Morgan State University, Clark Atlanta University, Texas Southern University, and Howard University. “HBCUs are one of the biggest assets we have, not just as institutions, but as large businesses with real estate in the Black community. There are a lot of ways we can leverage that. So we use HBCUs as testing grounds to pilot curriculum, programs, and resources for Black entrepreneurs, make sure they’re culturally appropriate, and then we take that across the country,” McKinney explained. This approach allows us to effectively coordinate programs and activities across all HBCUs, including educational programs, research strategies, and business outreach initiatives.
Unlike many companies that have made grandiose promises to address the structural inequalities that perpetuate the racial wealth gap, this pledge goes beyond mere lip service to 2020 and beyond. The PNC Foundation is backing up its words with action, providing $16.8 million in grants over five years to chip away at the funding gap from multiple angles. The investment will support scholarships, loan programs and education initiatives designed specifically to support aspiring Black entrepreneurs.
“PNC has taken the bold step of creating this innovative national entrepreneurial network across all HBCUs to broadly support Black entrepreneurship,” McKinney told ESSENCE. Through this partnership, PNC and Howard University are poised to drive real change that will empower the next generation of Black business leaders.
Building an Ecosystem: Bringing HBCUs and Entrepreneurs Together for Success
In-person interactions are a fundamental part of the plan. Studies show that entrepreneurs who participate in networking events and mentoring programs are three times more likely to be successful. To close this gap, Howard University and the PNC National Entrepreneurship Center are prioritizing in-person interactions. The “Black Commerce: The Future of Entrepreneurship” conference will address this issue directly.
What really stands out is the unique ecosystem that brings together HBCUs and the leading figures in the entrepreneurial world. “This design was purposeful,” says Dr. Johnny Graham, associate director of Howard University and the PNC National Entrepreneurship Center. “We wanted to be intentional about building something that would help grow the local, regional, and national ecosystem,” he explains. “If you look at the enrollment this year, you’re seeing Morehouse students attend entrepreneurship events for the first time, sitting in the same room as investors from Atlanta with venture capital funds. They’re connecting with politicians who are working on policies that benefit HBCUs and entrepreneurship, and they’re participating in workshops with professors from Texas Southern University and other HBCUs. This is the model. All the resources are in the same space, so Black entrepreneurs can benefit from the connections, additional learnings, and best practices of all HBCUs.”
Black Commerce: The Future of Black Entrepreneurs
The second annual event will take place June 19-22 at the Gaylord National Resort & Convention Center in National Harbor, Maryland, and will foster face-to-face interaction between Black entrepreneurs, investors and mentors, creating a space to build meaningful relationships that overcome funding and growth barriers and pave the way for long-term success. The event kicks off with the opening Juneteenth Celebration and launch of the Mecca Marketplace, features conference panels and workshops on June 20 and June 21, and concludes with an awards ceremony on Friday, June 21.
In response to last year’s enthusiastic response, McKinney says they’re extending the event this year, “so that people have more time to network and socialize, we’re extending it into Saturday morning with Black Tech Saturdays, which is led by a group in Detroit that travels around the country and hosts these big, massive events. We have a lot of events planned, so we’re really excited about it.”
Featuring live performances by Grammy-nominated artists including Eric Roberson and notable panelists such as Honeypot Company CEO and Co-Founder Bea Dixon, founder, investor and former NBA All-Star Baron Davis, and musician, host and entrepreneur Phonte Coleman, the event promises to be a fantastic mix of talent, expertise and inspiration.
