Monthly Archives: May 2013

The HBCU Endowment Feature – North Carolina Central University

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School Name: North Carolina Central University

Median Cost of Attendance: $23 495

Undergraduate Population: 6 416

Endowment Needed: $3 014 865 600

Analysis: North Carolina Central University needs an endowment of approximately $3 billion for all of its undergraduates to attend debt free. Its current endowment is estimated to be 0.7 percent of the needed amount. Located in Durham, NC which is steeped in rich African American economic history the university is one of the bigger undergraduate populations amongst HBCUs. It also boast being one of only four HBCUs to have a law school. A law school which carries much prestige in the state of North Carolina often pulling in law students from the two prestigious HWCUs located nearby. Inexplicably, it finds itself the only one of the four HBCUs with a law school not located in the top ten HBCU endowments. The school should be commended for digging deeper into its endowment coffers a few years ago to help a number of cash-strapped students. This will turn out to be either a great long-term move assuming one (preferably many) go on to become high quality donors back to the university. Otherwise, it will set the endowment back almost $500 000 over the next decade and $1.4 million over the next 20 years in potential added principal.  North Carolina Central University is taking a risk that not many colleges or universities – HBCU or not – seem to be willing to take and that is do whatever it takes to reduce its students debt load and increase its alumni population. A contrarian approach that could shape the university in the coming generation. It ultimately still must fix the issue of producing so many law graduates and the breakdown in its lack of high quality donors from the group. An HBCU endowment with an enormous amount of potential that has only scratched the surface.

As always it should be noted that endowments provide a myriad of subsidies to the university for everything from scholarship, faculty & administration salaries, research, and much more.

HBCU Money™ Business Book Featuere – Who Rules America? Challenges to Corporate and Class Dominance

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Drawing from a power elite perspective and the latest empirical data, this classic text is an invaluable tool for teaching students about how power operates in U.S. society. Domhoff argues that the owners and top-level managers in large income-producing properties are far and away the dominant figures in the U.S. Their corporations, banks, and agribusinesses come together as a corporate community that dominates the federal government in Washington and their real estate, construction, and land development companies form growth coalitions that dominate most local governments. By providing empirical evidence for his argument, Domhoff encourages students to think critically about the power structure in American society and its implications for our democracy.

HBCU Money™ Dozen Links 5/6 – 5/10

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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week. HBCU Politics™ our sibling publication will be taking over the political and government happenings so be sure to visit them at http://www.hbcupolitics.com for their release if you miss it.

Research

CSI meets marine science l California Sea Grant http://ow.ly/kUPtG

Tuesday, May 14, to unveil the new Louisiana Seafood Certification Program l Louisiana Sea Grant http://ow.ly/kUQhC

Summary for our Hydraulic Fracturing Study Analytical Chemical Methods Technical Workshop l EPA Research http://ow.ly/kUQDX

Hay preference study in horses l Kentucky Equine Research http://ow.ly/kslgF

Carbon dioxide in the atmosphere reaches 400 ppm for the first time in at least 800,000 years l Argonne http://goo.gl/lr5Xe

7 African countries improved enabling environment & attracted $3.5bn of investment commitments l Grow Africa http://ow.ly/kURvV

Federal Reserve, Central Banks, & Financial Departments

Are online classes are the future of higher education? l Richmond Fed http://ow.ly/kUwNU

See map of failed banks across the U.S. since 2007 l St. Louis Fed http://bit.ly/Jhff2n

In 2013, historically high farm incomes are projected to keep U.S. farm debt & leverage low l Kansas City Fed http://ow.ly/kRMzZ

Non-judges can now hear foreclosure cases in Florida l Housing Wire http://goo.gl/fb/KfWsZ

Working paper: House prices, home equity and entrepreneurships l European Central Bank http://bit.ly/10g2Oty

Speech by Chairman Bernanke on monitoring the financial system l San Francisco Fed http://ht.ly/kUfeT

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

The HBCU Money™ Weekly Market Watch

Our Money Matters /\ May 10, 2013

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $5.40 (0.00% UNCH)

Radio One (ROIA) $2.10 (10.32% UP)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  193.33 (1.45% UP)

Botswana Stock Exchange (BSE)  8 745.59 (0.00% UNCH)

Ghana Stock Exchange (GSE)  1 830.48 (52.58% UP)*

Nairobi Stock Exchange (NSE)  122.52 (N/A)

Johannesburg Stock Exchange (JSE) 40 232.05 (0.26% DN)

International Stock Exchanges

New York Stock Exchange (NYSE) 9 411.78 (0.03% UP)

London Stock Exchange (LSE)  3 490.01 (0.46% UP)

Tokyo Stock Exchange (TOPIX)  1 210.60 (2.43% UP)

Commodities

Gold 1 436.70 (2.17% DN)

Oil 94.54 (1.92% DN)

*Ghana Stock Exchange shows current year to date movement. All others daily.

All quotes reported as of 2:00 PM Eastern Time Zone

The HBCUpreneur Corner – Prairie View A&M University’s Alysha Sample & Pearluxe

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Name: Alysha Sample

Alma Mater: Prairie View A&M University

Business Name & Description: Pearluxe / We specialize in custom made accessories & clothing that accentuate any ensemble and appeal to the chic urbanite.

What year did you found your company? 2011

What was the most exciting and/or fearful moment during your HBCUpreneur career? My most exciting moment would have to be making my first sale. It was an exhilarating experience to know that someone admired my creativity and wanted to have a custom piece made by me.

What made you want to start your own company? I started my own company because I simply wanted to be my own boss. I’ve always known that a regular 8-5 job was just not for me because I like to be on my own schedule. Since graduation, I have learned this even more. Starting Pearluxe, gave me an opportunity to do something that I love, and nothing warms my heart more that being able to share my designs and creations with the world.

Who was the most influential person/people for you during your time in college? I would have to say the most influential person to me during my time in college was my mother, Lisa Sample. She is such an inspiration. No matter what she was there with me every step of the way and I greatly appreciate her for all that she has done and continues to do.

How do you handle complex problems? I handle complex problems by identifying the root of the issue so I can have a clear view of what the problem is. Once that is established, I face it head on and begin actively working to resolve it. I never dwell on problems because they are only temporary and once addressed they will no longer have power over you.

What is something you wish you had known prior to starting your company? I wish I would have know more about the financial side of owning a business especially when it comes to the matters of the state, such as taxes. I learned a valuable lesson early on in my business and educated myself so that I wouldn’t be faced with any similar issues moving forward.

What do you believe HBCUs can do to spur more innovation and entrepreneurship while their students are in school either as undergraduate or graduate students? I believe more one-on-one meetings and fairs with entrepreneurs would be very valuable. As a Political Science major in college, I felt that those opportunities were primarily reserved for Business majors. I also believe that school wide entrepreneurship initiatives and endeavors would be quite beneficial because I don’t believe that a person will find true happiness in their career until they are doing something that they absolutely love.

How do you deal with rejection? Dealing with rejection is something that I’ve had to deal with a few times since I started my company. You have to have a tough skin. There will be obstacles on the path to success but you will definitely become a better person and business owner because of it.

When you have down time, how do you like to spend it? I like to spend my downtime traveling, exploring new places, spending time with family and friends, reading, and watching movies.

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What was your most memorable HBCU memory? I would have to say the year I traveled with my school to the 2009 SWAC Championship in Birmingham, AL where we WON. That was one of the best weekends of my college career because the school spirit was so high. It was such an honor to be able to enjoy that moment with my friends and classmates.

In leaving is there any advice you have for budding HBCUpreneurs? Please research the market that you would like enter and see exactly where your type of business would fit into it. You will also need determine how your business with stand out among the competition. Once that is done, make it happen. Time waits for no man so create your opportunity and watch yourself prosper. You will definitely be glad that you did!