Three HBCU Cities Rank Among World Economic Forum’s Best Cities For Women Entrepreneurs


Everyone wants to thrive, but what makes some places better than others? According to the World Economic Forum, it is a mixture of technology, culture, capital, market, and good old fashioned talent. The study was limited to 50 cities globally and for women overall, so it should be noted that there of course will be limitations of what constitutes “best”. We will be providing some additional commentary as it relates to each city’s capacity for HBCU women.

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1. NEW YORK CITY

HBCU(s) in city: Medgar Evers College

City Analysis: The city that never sleeps certainly is hard to argue with in terms of the five pillars of entrepreneurship. In the Dell Women Entrepreneur Index it ranks number two in culture, number one in capital, number one in market, and number four in talent. No other city shows up in the top five of each pillar like New York, who shows up four times. However, it is not all sunshine when it comes to being an entrepreneur in the Big Apple. It is also listed as the city most expensive in the world to start a business, something that would obviously disproportionately impact African American women since African America is the poorest group by median net worth. Ultimately, there is no doubt though that New York City presents a breath of international opportunity in one of the world’s most global cities.

7. WASHINGTON D.C.

HBCU(s) in city: Howard University; University of D.C.

City Analysis: America’s capital affectionately known as Chocolate City. It shows up as number three in talent and number five in capital. The number seven city in the world for women entrepreneurs leads all states and territories with percentage of the population with a graduate degree which bodes well for a strong talent base. Some of the headwinds facing entrepreneurs in D.C. is their primary customer being Uncle Sam. With a culture of shrinking the federal government it would be of value for women entrepreneurs to focus on ways to help the government run more efficiently. The cost of living in Washington D.C. is also a barrier and having enough disposable income to actually get a business off the ground could be a real challenge in America’s third most expensive city by the cost of living index. However, where the heart of political power lies there is money nearby and if the right connections are made, then opportunities abound.

12. AUSTIN

HBCU(s) in city: Huston-Tillotson University

City Analysis: Austin has become the tech capital of the southern United States. The capital of Texas, also the economic bellwether of the south, it has seen a heralded growth over the last decade in terms of technology development. A large reason it shows up as number four in the world in the technology pillar for women entrepreneurs. This Texas city is more affordable than the previously mentioned cities, but not by much. The boom has led to massive gentrification in the African American neighborhoods there, so the feeling of community maybe hard to find for an HBCU woman in the city. Huston-Tillotson’s presence there while important is acutely dwarfed by the flagship of the state, University of Texas. Annually the city is home to the SXSW conference which brings even the big whigs from Silicon Valley and other tech giants from around the world. The city can be lonely culturally, but if one can navigate it opportunities for women entrepreneurs without forsaking poverty are available.

 

Federal Reserve’s 2015 Economic Household Well Being Report


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KEY FINDINGS

  • Sixty-nine percent of adults report that they are either “living comfortably” or “doing okay,” compared to 65 percent in 2014 and 62 percent in 2013. However, 31 percent, or approximately 76 million adults, are either “struggling to get by” or are “just getting by.”
  • Thirty-two percent of adults report that their income varies to some degree from month to month, and 43 percent report that their monthly expenses vary to some degree. Forty-two percent of those with volatile incomes or expenses say that they have struggled to pay their bills at times because of this volatility.
  • Forty-six percent of adults say they either could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money (47 percent in 2014).
  • Twenty-one percent of those who borrowed to attend a for-profit institution are behind on their loan payments. Among those who borrowed to attend a public or not-for-profit institution, 7 percent and 5 percent are behind on their payments, respectively.
  • Thirty-one percent of non-retired respondents report that they have no retirement savings or pen- 2 Economic Well-Being of U.S. Households, 2015 sion at all, including 27 percent of non-retired respondents age 60 or older.

FULL REPORT CLICK HERE.

HBCU Medical Schools Lead Gifts Of $1 Million Or More To HBCUs in 2015


If you have something to give, give it now. – Mark Bezos

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After only one donation of $1 million or more to HBCU in s 2013, in 2014 HBCUs landed an astounding nine, but the upward trend was not to continue. In 2015, HBCUs landed just four of the 530 donations that were of $1 million or more that found there way to American colleges and universities. That equates to 0.75 percent, while HBCUs constitute approximately three percent of the country’s higher education institutions. The nine donations in 2014 were a combined $20.5 million, while 2015’s foursome combined for $7 million.

Leading this year’s donors was Hammerin’ Hank Aaron with a donation of $3 million to the Morehouse School of Medicine. The baseball legend’s donation according to the press release by the school, “will be used to expand the Hugh Gloster Medical Education building and create the Billye Suber Aaron Student Pavilion.” However, the wealthiest donor among the group was billionaire Bill Gross, co-founder of the PIMCO investment firm with $1.5 trillion in assets under management, and his wife. Their donation was second among the group with a $2 million gift to Charles Drew University of Medicine & Science. HBCU medical schools are leaders within the HBCU research community constituting three of the top ten HBCU research institutions. These donations should only strengthen that resolve.

With African American owned banks seeing a huge engagement in 2016, it is possible that this may translate to institutional investments for HBCUs if the seeds of current sentiment are nurtured by leadership. This is an opportunity that HBCUs simply can not afford to miss, both financially and socially. Especially considering the higher education arms race for donors and the top four HWCU/PWI donations totaling $950 million in 2015. Building relationships with African American athletes and entertainers as donors as well as looking abroad in the African Diaspora would greatly increase the possibility of landing more of the eight and nine figure donations that are desperately needed.

The growth in the number of $1 million or more donations is a positive if it continues, but the amounts as well need to see dramatic increases as well for us to make sure our institutions are viable for generations to come.

1. Hank Aaron – $3 Million
Recipient: Morehouse School of Medicine
Source of Wealth: Transportation

2. William H. & Sue Gross – $2 Million
Recipient: Charles Drew University of Medicine & Science
Source of Wealth: Finance, Investments

3. Charles Barkley – $1 Million                                                                     Recipient: Morehouse College
Source of Wealth: Entertainment

4. Jimmie Edwards – $1 Million                                                                          Recipient: Dillard University
Source of Wealth: Chemicals

Source: The Center for Philanthropy

Unemployment Rate By HBCU State – June 2016


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STATES WITH RISING UNEMPLOYMENT: 7

STATES WITH DECLINING UNEMPLOYMENT: 12

STATES WITH UNCHANGED UNEMPLOYMENT: 5

LOWEST: VIRGINIA – 3.7%

HIGHEST – ILLINOIS & LOUISIANA – 6.2%

STATE – UNEMPLOYMENT RATE (PREVIOUS)*

ALABAMA –  6.0% (6.1%)

ARKANSAS – 3.8% (3.8%)

CALIFORNIA – 5.4% (5.2%)

DELAWARE – 4.2% (4.1%)

DISTRICT OF COLUMBIA – 6.0% (6.1%)

FLORIDA – 4.7% (4.7%)

GEORGIA – 5.1% (5.3%)

ILLINOIS – 6.2% (6.4%)

KENTUCKY – 5.0% (5.1%)

LOUISIANA – 6.2% (6.3%)

MARYLAND – 4.3% (4.5%)

MASSACHUSETTS – 4.2% (4.2%)

MICHIGAN – 4.6% (4.7%)

MISSISSIPPI – 5.9% (5.8%)

MISSOURI –  4.5% (4.3%)

NEW YORK – 4.7% (4.7%)

NORTH CAROLINA – 4.9% (5.1%)

OHIO – 5.0% (5.1%)

OKLAHOMA – 4.8% (4.7%)

PENNSYLVANIA – 5.6% (5.5%)

SOUTH CAROLINA – 5.4% (5.6%)

TENNESSEE – 4.1% (4.1%)

TEXAS – 4.5% (4.4%)

VIRGINIA – 3.7% (3.8%)

*Previous month in parentheses.

HBCU Money™ Business Book Feature – The Foundation: A Great American Secret


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Private foundations have been the dynamo of social change since their invention at the beginning of the last century. Yet just over 10 percent of the public knows they even exist; and for those who are aware of them, as well as even those who seek grants from them, their internal workings remain a complete mystery. Joel Fleishman knows the sector like few others, and in this groundbreaking book he explains both the history of foundations—with their fledgling beginnings in the era of the robber barons seeking social respectability—through to the present day. This book shows how, why foundations matters, and how the future of foundations can provide a vital spur to the engine of the American, and the world’s, economy—if they are properly established and run.