Category Archives: Business

Gaines & Johnson: A Different World Of A Lesson In HBCUpreneurship & Leadership

By William A. Foster, IV

A man must eat a peck of salt with his friend before he knows him. – Miguel de Cervantes

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Recently Lou Meyers, the man who played Vernon Gaines on A Different World, passed away. As such it made me take some time and reflect on his character from the show. Awhile back I wrote that the characters Dwayne Wayne and Ron Johnson missed a golden opportunity to build a technology company together and instead Ron and Mr. Gaines would open what would be the “typical” show of African American ownership – a club. However, upon reflection even I must admit I missed a golden lesson about something even I experienced while I attended multiple HBCUs and something I believe to be very unique to HBCU culture.

Relationships matter. There is something amazing about the relationship at HBCUs with the students and groundskeepers, janitors, secretaries, cafeteria workers, and others who quietly make the college or university run also commonly referred to as staff. They are as integral and as invested often times in our students’ success as anyone. These unsung heroes provide the little things to HBCU students through their matriculation and was embodied by Mr. Gaines’ character on A Different World. Mr. Gaines was constantly providing words of encouragement and priceless wisdom to all that came through The Pit’s doors. He showed by example hard work and leadership to students who worked under his apprenticeship. They learned lessons from him that no classroom or schoolbook could teach. Oft times providing some of those lessons to faculty as well.

In the case of Ron and Mr. Gaines even I missed something vitally important. Mr. Gaines gave much of his life savings to obtain the club with Ron. It was a huge risk for him personally but what an amazing moment. We so often talk about how we lack access to resources especially financial ones and other expertise but it is often because we are not thinking outside of the box. Many times the resources are right under our nose. Ron and Mr. Gaines partnership was a match made in heaven. Ron was the consummate promoter, a risk taker, and full of youthful arrogance while Mr. Gaines was the steady hand of experience and wisdom along with being an operations guru making sure any ship under his care was going to be run efficiently and on time. Working at an HBCU he also could run anything on a tight budget squeezing every ounce of value out of every dollar. Ron came from a family that probably could have allowed him to bankroll it by himself but odds are he would have failed going alone. His weaknesses were Mr. Gaines strengths and vice versa. But it was years of relationship building between Mr. Gaines watching Ron mature from an immature freshman with promise to a driven young man that allowed their partnership to form in the first place. You see the “ivory” walls that exist between students and staff that exist at many colleges just do not exist at HBCUs and nor should they. Many of our students have parents and family who work in these type of jobs so they have a respect for the work that is tirelessly being done. It allows a wholistic development and humility for our students to be taught by everyone on the campus because everyone has something to offer to our students.

What eventually would come of the Gaines & Johnson partnership? That one club turned into a major food & events management and development company eventually going public on the Ghana Stock Exchange. They would continue to open clubs and eventually find their way into opening casinos, hotels, and restaurants using Hillman architecture, business, engineering, and hospitality graduates. The food & events management division would have the culture of The Pit. Run on a tight ship and on time. Its reputation throughout the industry would be unheralded. They would eventually secure contracts with multiple professional sports organizations and would be lead company managing the Super Bowl. Their development company would ultimately land a development deal in Tokyo, Japan for a major hotel and restaurant with the assistance of fellow alum and Senior Vice President Dwayne Wayne at Kenishewa who uses his influence to secure them favor.

This is the beauty you see on HBCU campuses. That our students and staff most often come from communities and families that allow them to relate to each other and see in each other the reminder of today and promise of tomorrow. Dr. Carter G. Woodson said in Miseducation of the Negro, African Americans would come from a family whose mother had been a maid washing clothing, they would go off to colleges and instead of them coming back and starting a chain of cleaners would rather become highbrow and go off to work in some company as still nothing more than fancy labor with a nice title. Missing an opportunity to truly build on the knowledge of the generation before and create ownership for the family and community. Most often because we were taught that only the “educated” have value instead of understanding that value is in the knowledge whatever it maybe and whomever it maybe coming from.

It is the unique relationship that often times HBCU staff see in the students the optimism for their own families. Something tangible which is why more than any other college or university I have visited during graduation, it is at HBCUs I most often see staff there and afterwards in pictures with students or students going to say those last goodbyes to the cafeteria worker who made sure they ate during finals. Or in the case of Mr. Gaines and Ron building on the expertise and knowledge of both even if it came via different sources. You see in that way on HBCU campuses there are opportunities everywhere and with everyone. There are lessons to be gained and leadership to be viewed from everywhere and everyone. There is much to be gained from the Mr. Gaines’ of HBCU campuses and as such their knowledge, value, and leadership must be respected and valued as much as any on our campuses. Lou Meyers you will be missed but the immortality of Mr. Gaines and all that his character embodied will live on.

The HBCUpreneur Corner – North Carolina A&T’s Asaad Thorne & Urban Argyle, LLC

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Name: Mr. Asaad Thorne

Alma Mater: North Carolina A&T State University

Business Name & Description: Urban Argyle, LLC. We use clothing as a innovative means to create socially conscious statements.

What year did you found your company? January of 2009

What was the most exciting and/or fearful moment during your HBCUpreneur career? The most exciting moments were my first time launching a blog and online store. Oh, and also seeing something I created on national television. The most fearful moments come ironically when I get closer to my goals. It’s scary sometimes when you’re about to get something you’ve been working for.

What made you want to start your own company? I wanted to start my own company because I wanted to create and develop something that was at one time just completely an idea. The fact that something as small as a thought can undoubtedly become a reality (no matter what) is crazy to me. To me, entrepreneurship is truly the strongest way to create anything there is you’d like to create.

Who was the most influential person/people for you during your time in college? The most influential people to me was a close friend who was also SGA President at the time who consistently broke barriers. Terrence J is a huge inspiration to me because our backgrounds are similar with high school, college, and NCA&T SGA. Lastly would be my two very close friends Adrianne Stevens (pictured below) and Alexandria Pierce. During a hard time they let me live with them and monopolize their laptops to actually create my business. They believed in me when I didn’t believe in myself and were the reason I could start a business eventhough I was a homeless student with no internet. They were murdered two years ago but I always make it a point when I feel tired or lazy to honor the faith they had in me.

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How do you handle complex problems? The worst thing you can do is shut down. I start with reminding myself that this situation is going to be here whether I choose to deal with it now or later. Then if it’s really bad I consider the worst way it could potentially turn out and accept it. Then, I think of the best potential way it could turn out and make it my reality. Then it’s just a matter of breaking it down to simpler parts until it starts to make sense.

What is something you wish you had known prior to starting your company? I wish that I’d known that there is no secret formula to running a business. Every “best” business practice can be challenged and proven to be a “worst” business practice. I spent a lot of time looking for the “secret” to entrepreneurship but it’s nothing more than staying committed to a purpose until it’s sought through. There is no way possible to know exactly the twists, turns, and opportunities that come your way so it’s best to make a couple broad, short-term goals and many, many, many small and basic short term goals as you go along.

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 that internships with alumni who are entrepreneurs would be genius. In the fashion industry, there are many unpaid interns who pay their dues as a means of respect to grow. If HBCUs could mirror this concept, alumni would have access to more resources in support and undergrads would get experience so both would grow. Experience is the only way to grow in entrepreneurship because it is more competitive than any other field.

How do you deal with rejection? I find another way. One of the first things you have to understand is that business is not a game and it’s not personal. It’s business. If you haven’t been rejected then you haven’t done anything. In fact entrepreneurship is all about finding a “way around the no’s”.

When you have down time how do you like to spend it? Trying to shut my brain down. It’s hard not to think or work on things sometimes but you also don’t want to burn out. It all depends on working styles. Sometimes I lock myself away for a little while, maybe a weekend and just work. But if I do I make sure to take a few days off after. Life would be great if I could spread my productivity a little more evenly but I haven’t mastered that yet.

What was your most memorable HBCU memory? I organized a commemorative march using clothing to fund raise for the International Civil Rights Museum in Greensboro, NC. Hundreds of people came and there was news coverage. That’s when I realized any idea is possible.

In leaving is there any advice you have for budding HBCUpreneurs? The best piece of advice I’ve been given by one of my mentors is to “Grow slowly”. Sometimes we want to do a million different things because we see the long term goal we want but growing extremely fast is almost always followed with falling completely fast. It takes time, dedication, and commitment to start to see lasting results. Think of it a seed planted. No matter if I water it 5 times a day or 50 times a day there’s still some growth that has to happen completely independent of my influence.

But most importantly, enjoy the small victories. Celebrate everything, it keeps the motivation going. Be able to say “Made a million dollars today!” with the same level of excitement as saying “Responded to an email! Woo!”

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Visit Urban Argyle’s flagship Proud Product at http://www.proudproduct.com or head straight to their store at http://proudhbcuproduct.bigcartel.com/  to see the latest offerings.

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Why Not Africa? A Land Of Opportunity For African Americans

By Cordie Aziz

Africa, for the longest time, was thought of as a place where savages and wild beasts roamed endless plains and jungles. However, as time has advanced so has Africa and its image. Now boasting some of the fastest growing economies in the world, countries like Mozambique, Tanzania and Kenya are outpacing many developed countries. Other African countries, like Ghana, are now considered middle class countries, illustrating to the world that many African countries are ready to start competing intenationally.

So in the midst of all of this development and economic growth you have to ask yourself why aren’t more African- Americans following the trends of investing in Africa. Is it lack of knowledge of the opportunities, is it the fear of moving into an unknown continent or is it just lack of interest?

If you had a chance to read the job analysis featured on HBCU Money last week, you saw that overall blacks are still losing jobs in the American economy. They, in fact, still boast the highest unemployment rate of all the races, despite their educational level. So, at what point, will African Americans decide to do something different? What will it take for African Americans to not only see the potential in Mother Africa, but to help actualize it as well?

From cell phone apps to grocery and dry cleaning services, every part of the African market is expanding. Each day new opportunities are created and all the market needs is the right person to fill the gap. So why continue to waste your time fighting for crumbs and you can have a whole pie?

If you are young and have a few thousand dollars accessible to you, I would strongly recommend looking into investing overseas. Yes, you will have to do your research and find the right opportunity for you. But once you do, it will be a decision that you will never regret.

So now that you have some basic information, tell me what is stopping you from looking at investments in Africa?

Cordie Aziz, is a former Congressional staffer who moved to Ghana after losing her job in 2011. She currently is the owner of a cell phone rental company in Ghana and has the blog brokEntrepreneur.wordpress.com

Follow her on twitter @brokenEntrepren

Spelman College & Regions Bank – A Failure To Disclose

In your area of responsibility, if you do not control events, you are at the mercy of events. — Harland Svare

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Let me say that it took me some time to even bring myself to write this article. I have always had a certain affection for Spelman College and the work they do there. Primarily because I have always appreciated their unapologetic approach to building a stronger African America and not caving to some of the newer and less Afrocentric strategies I see popping up at other HBCUs these days. My visits to the campus many years ago visiting friends there or in recent years to buy my daughter a shirt from their bookstore were always pleasant. Perhaps because more than any other HBCU campus I have visited it always gave me the nostalgia feeling of the television show A Different World, it does not hurt that there is a building with Bill and Camille Cosby’s name on it either to that point. However, when it was announced that Spelman College and five other HBCUs (Alabama A&M University, Alabama State University, Florida A&M University, Jackson State University, and Tennessee State University) I felt both a sense of frustration and skepticism. The latter as I wondered just why and how Regions Bank was chosen for this “financial partnership” and also because the relationship between European American owned companies and HBCUs has tended to be in my opinion a very one-sided affair.

Regions Bank, a wholly owned subsidiary of the publicly traded Regions Financial Corporation, is headquartered in Birmingham, Alabama. Birmingham has a myriad of advantages going for it as it certainly serves as a fairly central geographic point of HBCUs in the deep south. Birmingham is also emerging as something of a poor man’s Houston in terms of its economy with an affordable cost of living, growing healthcare center anchored by the University of Alabama System, and an emerging banking industry. Regions Bank is the tenth largest U.S. based bank and fourth largest bank headquartered in the South behind Bank of America, Sun Trust, and BB&T. It is largely considered a regional bank meaning that its operations are largely confined to the southeastern United States, which is where the majority of HBCUs are located, but given that Sun Trust and BB&T are also regional banks and both are larger than Regions Bank it continued to make me question why they were chosen. Especially given the bank spent much of 2011 with swirling speculation that it was a takeover target and as its share price sank rather unceremoniously. Both typically a sign of a bank not on the most solid of financial ground.

Traditionally, HBCUs and African American organizations have been institutional customers Bank of America. An almost comical situation given Bank of America’s history of redlining in the African American community. Banking at its simplest form works by a bank collecting deposits and in turn making loans with those deposits. Banks are the ultimate form of the old business acronym OPM (Other People’s Money) to make money. The bigger the deposit base a bank has the more loans it can make. Loans are a bank’s assets and its deposits are a bank’s liabilities. They are also risk movers in the sense that their job is to disperse the economic and financial risk of the community they are owned by onto other communities. By doing so they are able to keep the cost of capital to the community they are owned by at a lower interest rate than what the demand of capital commands. As it were African Americans have been depositing our money in European American owned banks and then being loaned our own money at disproportionately toxic interest rates in the form of subprime loans even when our credit approves us for traditional mortgages which are at lower interest rates. This happens because most African Americans, even the college educated among us, tend to lack financial IQ. For bankers their interest as it relates to their bonuses and commissions is tied to getting the customer into higher risk loans. The more complex (or dangerous) the product is usually the higher the commission that comes along with it.  Given subprime loans pay higher interest rates than a traditional mortgage if you can lead a sheep (see customer) to slaughter without any resistance rarely do you pass up the opportunity.

All of this leads me to the “financial partnership” of Regions Bank with the six HBCUs. The “financial partnership” is described in Journals of Black in Higher Education as “Under the program, the bank will help establish a financial education curriculum at the partnering institutions. Regions Financial will mentor students and recruit students and graduates for employment and internship positions. An executive lecture series will be established with business schools at participating partner institutions.” The cynic in me has a hard time believing in individual altruism but my time in business school and in industry leaves me with quite a bit of resolve in saying that there is no corporate altruism. Companies build up goodwill, ironically goodwill is quantified by companies and listed on corporate balance sheets as an asset,  to bring in customers plain and simple. I have no problem with this method of advertisement under the guise of community outreach but it speaks to our financial naivety that we do not realize this goodwill is just a move in an ongoing chess game. A different method/strategy intended to still accomplish the same ending. Partnerships usually imply a two-way street. At least the last time I checked the definition. So what is the partnership? We see what Regions Bank is providing and it is pretty clear what they are hoping to get in return. The customers in the form of students, professors, and even the universities themselves (if they are not already customers). They will take our deposits and give us loans and African American ownership in Regions Bank is negligible at best – an institutional development fail on our part.

So why did I single out Spelman College? In a game of “which of these things do not belong” Spelman sticks out like a sore thumb. Three of the six are members of the SWAC, which just happens to be headquartered in Birmingham. Five of the six are public universities which made Spelman’s presence even more peculiar to me. Why would an HBCU with the 2nd largest endowment, at approximately $326 million, more than the other five HBCU endowments combined and a private institution which in itself presents very different financial needs, enter into this cohort? The simple answer is to follow the money. When examining Regions Financial Corporation institutional ownership via NASDAQ, I saw the usual suspects before coming to the seventh largest institutional investor AJO, LP. I had researched this company before or at least I thought I had but could not remember so I decided to check out the company website. Heading to the profile of the managing principal of the company is a man named Ted Aronson. Mr. Aronson founded AJO, LP in 1984 and the company currently has $19.5 billion of assets under management. He also as it turns out is a trustee at Spelman College and chair of its investment committee which decides largely how Spelman will invest its endowment. An endowment portfolio that is the lowest performing of the top ten HBCU endowments. The average return among the top ten largest HBCU endowments is 17.5 percent while Spelman’s endowment portfolio came in at 10.7 percent last year. It would be hard not to believe that the chair of your investment committee does not have you invested in a bank where his company is the seventh largest investor and has $160 million at stake. Just how invested the school is in Regions Financial Corporation is hard to say but with the bank seeing an almost 40 percent decline in its share price in 2011 it is not hard to potentially connect the dots of Spelman’s endowment portfolio under performance.

It continues to bewilder me why HBCUs and African American organizations seem to conduct themselves outside of the institutional development chain. It should be noted that the United Negro College Fund also has a partnership with Regions Bank. The same effort that was put into forming this “financial partnership” with a bank we do not own could have been put into forming the HBCU Credit Union and offered all of the same services plus massive employment creation (Regions Bank has over 25,000 employees) for African America not just a few internship positions and – all under our ownership. The Regions Bank board of directors has two African Americans, of which only one attended an HBCU, and the bank’s senior management has no African Americans. So we have little to no control of the power positions within the bank and more importantly very negligible ownership of the bank. For some reason this movie seems familiar and I am sure the ending will be as well.

From 500 To 1: The Death Of The African-American Owned Hospital

By William A. Foster, IV

The health of nations is more important than the wealth of nations. – Will Durant

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Pictured Above: Provident Hospital and Training School, Chicago, Illinois, 1896. Provident Hospital, the first African American-owned and operated hospital in America, was established in Chicago in 1891 by Dr. Daniel Hale Williams, an African American surgeon.

The idea that someone else will care for you, your family, or your community better than you seems to be the purveying attitude of African America in almost every facet of our strategy today. This is of course assuming you believe we have an institutional strategy of our own to begin with. Instead of building and competing for power and control we seem content on waiting for others to share their spoils with us because it is the “right” thing to do only to be “shocked” when others idea of right and our idea of right do not acquiesce.

The history of African America and health has always been a precarious one. A people descended from the medical genius, Imhotep, known as the “father of medicine” who performed the earliest known surgery to the inspiring story of Dr. Ben Carson in present times. Healing sanctuaries and temples to the goddess Sekhmet are known to be the earliest “hospitals” to date. Fast forward a few thousand years to America and African Americans in Detroit alone owned and operated 18 hospitals of their own between 1917 to 1991. The confines within their own hospitals and medical ecosystem would seemingly be the only place where safety existed. From colonial times to present time, as noted in Medical Apartheid by Harriet Washington, when African Americans went outside of their own medical ecosystem we were and are subject to some of the most brutal medical experiments and abuses known in medical history. In an interview with Democracy Now, Ms. Washington is quoted giving examples of these abuses from past to present, “James Marion Sims was a very important surgeon from Alabama, and all of his medical experimentation took place with slaves. He took the skulls of young children, young black children — only black children — and he opened their heads and moved around the bones of the skull to see what would happen. He bought, or otherwise acquired, a group of black women who he housed in a laboratory, and over the period of five years and approximately forty surgeries on one slave alone, he sought to cure a devastating complication of childbirth called vesicovaginal fistula.” Ironically, as it were, Dr. Sims would go on to become president of the American Medical Association. Ms. Washington then goes on to present times stating “It’s black boys who have been singled out for these very dangerous experiments, such as a fenfluramine experiment that took place right here in New York City between 1992 and 1997. A lot of the abuse in African Americans has dissipated, but that kind of research is being conducted in Africa, where the people are in the same situation. They don’t have rights. They don’t have access to medical care otherwise, and Africa is being treated as a laboratory for the West by Western researchers.” Despite this obvious and consistent pattern of behavior we continue to seek to dismantle our own medical ecosystem.

It is no secret that the health of the African American community has always been in peril. Arguably today, more so than it has ever been in our history in this country. To some, the issues of medicine are a one size fits all prescription for any human anywhere. It is true we all have the same anatomy certainly but historical diet from our ancestry, environment, stress from the Middle Passage, slavery, and socioeconomic burdens that culminated after desegregation have taken its toll and many other factors create unique factors in the African American health dynamic. In fact, every group  based on their historical geography and diet has unique health features in their present health makeup. As such what is conducive to one group will not necessarily work for another. The variables at play do not provide for blanket medical solutions or care. Biological diversity exist in every species be it cats (lions, cheetahs, tigers) or humans. Yet, our desire to ignore these realities for the sake of creating a racial or ancestral Utopia has created a boom in our health risk with no seemingly end in sight. The numbers bear out a bleak picture of African American health today. African American life expectancy is 4.3 years less than the average American and 4.8 years less than European Americans. We currently have the highest age-adjusted death rate among all populations. The infant mortality rate in America for all is 6.8 per 1000 births yet for African America it is 13.2 per 1000 births. Approximately 20 percent of all African Americans are uninsured versus a national average of 15.9 percent. We are going extinct and do not even realize it.

Nathaniel Wesley Jr.’s book “Black Hospitals in America: History, Contributions and Demise” points out that at our apex there were 500 African American owned and controlled hospitals. Today, Howard University in Washington D.C. is the last one standing. In 1983 as Dillard University was selling its hospital Flint-Goodridge their president at the time, Dr. Samuel Dubois Cook stated that its demise was a result of “tragic mismanagement, social change that desegregated hospitals, financial irregularities, the fact that 90 percent of the patients were on Medicare or Medicaid and the loss of broad community support”. It would be hard not to assume that these were the underlying cause of the majority of most African American owned hospitals since as we know fervently believe that our proverbial ice could not possibly be as cold as the ice in other communities.

Rethinking the role of hospitals in general is needed given the rapid rise of healthcare cost but especially so in the African American community where the ability to afford private healthcare is almost impossible given our lack of wealth. While Asian and European America’s median net worth both approach $100,000 the African American median net worth is close to $2,000 and dropping according to the Economic Policy institute. Hospitals in our communities should be fashioned as health and wellness focused on preventive care, nutrition, and alternative medicines more unique to our biology. HBCUs themselves while not all needing to build hospitals should all be investing in community clinics that are connected regionally with an African American owned hospital. The pre-med and business programs should create more courses on the development of these facilities. Its impact on both wealth creation and health improvement would do wonders for African America as a whole.

It could be said that for all the benefits of the Affordable Healthcare Act proposed by President Obama, our longer term interest in building a medical ecosystem focused on the needs and issues that face the African American and African Diaspora community would go much farther in improving our health as a people. After all if health is wealth and wealth is created by ownership then we must once again build and own the ecosystem that is the DNA of our blood, sweat, and tears.