Yearly Archives: 2013

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!

African America’s April Unemployment Report -13.2%

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Overall Unemployment: 7.5% (7.6%)

African America Unemployment: 13.2% (13.3%)

Latino America Unemployment: 9.0% (9.2%)

European America Unemployment: 6.7% (6.7%)

Asian America Unemployment: 5.1% (5.0%)

Analysis: The overall unemployment rate is down. African and Latino America were the only communities to see a decline in their rates. An extremely rare occurrence. European America was unchanged and Asian America saw a slight uptick. African America continues to be the only group with double digit unemployment.

African American Male Unemployment: 12.6% (12.7%)

African American Female Unemployment: 11.6% (12.2%)

African American Teenage Unemployment: 40.5% (33.8%)

African American Male Participation: 67.4% (68.1%)

African American Female Participation: 62.3% (61.3%)

African American Teenage Participation: 27.5% (27.6%)

*Previous month in parentheses.

Analysis: Men and women groups saw declines in their unemployment rates. The teenage group saw almost a 20 percent rise in their unemployment rate from last month. Participation rates saw a promising rise for women while men saw a weighty drop. The African American teenage participation rate remain fairly unchanged.

Conclusion: America overall added only 165 000 jobs in the month of April. African America netted 99 000 new jobs. African American men and teenagers loss 51 000 and 49 000 new jobs, respectively. Thankfully, African American women experienced a net of 199 000 jobs. For the third month in a row African America has seen an overall increase in employment. African American women by far the most important economic group in African America is experiencing its highest employment in the past 5 months. African American men are still above their 5 months low but starting to trend downward in their employment numbers. The participation rate for men has reached its 5 month low while the women has reached its second highest participation rate over the past 5 months. The teenage group’s employment continues to be erratic, unstable, and appears to be trending downward. The group (women) that is the most economically important is also the most economically burdened carrying much of African America’s fate on its shoulders and once again appears to be finding that weight trending upward. Overall, participation is at its second highest rate in the past 5 months. Whether that can be maintained while bringing the men and teenage groups back into the fold to spread the economic burden is yet to be seen. The sequester while taking its toll has not been as negatively impactful as originally thought given African America’s dependency on public sector employment. While things do seem to be getting better or at the very least not getting worse, in order for African America to even reach a 9.9 percent unemployment rate it would need to add 600 000 jobs.

The HBCU Endowment Feature – Bethune-Cookman University

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School Name: Bethune-Cookman University

Median Cost of Attendance: $22 958

Undergraduate Population: 3 527

Endowment Needed: $1 594 062 880

Analysis: Bethune-Cookman University needs approximately a $1.6 billion endowment for all of its undergraduates to attend debt free annually. The flagship private HBCU in Florida and the 7th ranked HBCU endowment in 2011 and 2012. An HBCU with one of the most storied histories via its founder Mary McLeod Bethune. Its current endowment is 2.6 percent of the needed endowment. Bethune-Cookman even with its prestige is sometimes forgotten in the whole of HBCU conversations and at times Mary McLeod Bethune’s ghost seems to lord a heavier presence than the institution she founded. Despite this, the school continues to produce quality graduates and has the 3rd lowest reported student loan debt per graduate in the MEAC. A vitally important factor in graduates being able to achieve wealth more quickly upon graduation and thereby being able to become qualified donors sooner. Unfortunately, Bethune-Cookman has a limited graduate school which is highly problematic for a flagship private school and should be an area the school looks to for an expansion. This is a primary limitation of the school producing more high quality donors long-term and could become problematic. However, if Bethune-Cookman has proven anything over the course of its history, it has proven to be a stable ship amongst HBCUs never wavering too far off course of its intended mission. It also must look to triple its undergraduate population over the next decade in order to increase the size of its alumni population. An issue facing almost every HBCU with Bethune-Cookman University not being exempt. A marketing campaign centered around its geography would not hurt the school’s ability to increase enrollment. Being located in Daytona Beach is an ideal setting to sell to high school graduates, transfer students, and graduate students. The school is on the cusp of becoming a $50 million endowment but would need to come up with an outside of the box capital campaign over the next decade to encroach on the $100 million endowment club. There certainly is not a steadier HBCU in Florida than Bethune-Cookman University at the moment and if it can continue to promote that stability it will undoubtedly payoff in the long run allowing it to maintain its place in the HBCU echelon.

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.