Tag Archives: HBCU

The HBCU Endowment Feature – Elizabeth City State University

Ecsu_seal

School Name: Elizabeth City State University

Median Cost of Attendance: $18 786

Undergraduate Population: 2 760

Endowment Needed: $1 036 972 320

Analysis: Elizabeth City State University needs approximately a $1 billion endowment for all of its undergraduates to attend debt free. The university is located in the northeast part of North Carolina. In a state with an abundance of higher education institutions it can be extremely difficult to standout. It also does not help that ECSU is not on the HBCU “corridor” of I-85/I-95 going through the states of North Carolina and Virginia. The northeast part of North Carolina is a more isolated geography of the state. As in most cases like this there is a bit of the gift and the curse attached to such a reality. By being isolated it can have an intimate advantage in recruitment in the northeast part of North Carolina and very rural parts of southeastern Virginia. The disadvantage of course is beyond those areas it will have a difficult time not being in the HBCU corridor, and therefore will have a hard time getting students outside of its most intimate regions. A cause for concern given the drop in enrollment the school has seen lately. As noted with public university endowments, the size of the alumni base is a mixture of student body size and graduation rates. This formula plays an integral role in the health of the endowment. A declining student body size is a danger to the long term financial stability of a college’s endowment primarily because historically only 10-15 percent of alumni give back nationally. The number is even smaller among HBCUs. Currently, Elizabeth City State University is reported to have a $4.5 million endowment or equal to 0.45 percent of its needed endowment. A serious red flag for long-term stability which lends to some of the issues of the school’s current financial issues. The school has an opportunity to reduce itself down to a healthier size that could allow it could to obtain the financial health it needs to potentially grow at a more steadied pace. It also much find a way to infuse itself along the state’s coastline African American population. The real question is will that be enough. Ideally, ECSU needs to have a student body at least triple its current size if it wants to seriously expand its alumni base within the coming decade.  It is clear they are going to have to pick up the pace of their endowment and capital campaigning to survive tomorrow, otherwise we could be seeing some of the turmoil in Virginia spillover into North Carolina with Elizabeth City State University potentially being the first casualty.

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.

The HBCU Endowment Feature – Delaware State University

210px-Delaware_State_University_seal

School Name: Delaware State University

Median Cost of Attendance: $16 460

Undergraduate Population: 3 744

Endowment Needed: $1 232 524 800

Analysis: Delaware State University needs approximately a $1.2 billion endowment for all of its undergraduates to attend debt free. The school is located in Dover, DE and is the only HBCU in the state. Although the states demographics lend to over 20 percent of the population being African American, it should be noted that the state itself has less than 1 million citizens. This means DSU must rely heavily on recruiting from outside of its state borders to build its population. Delaware is surrounded by Maryland, Pennsylvania, and New Jersey. The latter presenting a prime opportunity since it does not actually have an HBCU located within its borders. Delaware State University because of this could become more integrated with that reality and offer “in-state” tuition to those citizens in New Jersey. Especially, given the presence of cities like Newark, New Jersey which have a strong African American population and have the potential for sound social and economic ties to Delaware State University. The state of Delaware itself is the legal “home” to more than 50 percent of U.S. public companies and two-thirds of Fortune 500 companies. Being a prominent state of where companies set up their legal home suggest a revenue opportunity is available to Delaware State University and its alumni to create programs and services to existing companies and forming companies. With an endowment just over $20 million the university is sitting in an economic hub of sorts and access to the New Jersey population could easily make a run into the top ten HBCU endowments. It does face increasing dangers of trying to become too ethnically diverse and could lose its HBCU appeal. This red flag is primarily because of the unknown data as of yet as to just how committed non-African American alumni are as donors to their HBCUs. There is much to like about the direction of the endowment situation at Delaware State University but there are some concerns for a school in a state with limited in-state population unless it becomes more creative in recruitment.

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.

The HBCU Endowment Feature – South Carolina State University

200px-SC_State_Univ_Logo.svg

School Name: South Carolina State University

Median Cost of Attendance: $21 700

Undergraduate Population: 3 744

Endowment Needed: $1 624 896 000

Analysis: South Carolina State University needs approximately $1.6 billion for all of its undergraduates to attend debt free. The university is located just over 2 hours from Charlotte, NC and almost 4 hours from Atlanta, GA. Currently, it has approximately 0.3 percent of the endowment needed. There might not be a more “famous” board of trustees in HBCU nation over the past few years – some would prefer the word infamy. The board has lacked vision and cohesion for a number of years which has recently resulted in a significant turnover of the board. This occurring while new leadership was being brought in to head the day to day operations and lay out a new vision of the university. That amount of turmoil can make even the most loyal alum or friendly donor wary of giving. The new leadership must hit the ground running and create a concise, clear, and present vision that the school and its alumni can buy into both for morale and giving. South Carolina State University has produced 6 HBCU presidents from its womb so its DNA is something to behold. As the only public HBCU in the state of South Carolina with an African American population roughly 1.5 million, the university should and could be double if not triple its current size. Given that endowments and donations is largely a numbers a game, when you have a monopoly like South Carolina State University has you must exploit it. Also being the only public HBCU in the state means it is the only one with the ability to scale a graduate program to size and could use that moving advantage to pipeline the other 5 private HBCUs into its graduate programs where it could indeed produce more high quality donors. South Carolina State University is truly a diamond in the rough but showing what happens with poor leadership from boards and administrations that can hold back if not almost dismantle a storied institution. This storied institution has all the ingredients – leadership to be determined – to have unimaginable success. We will see what fate its future holds sooner rather than later.

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.

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

pearluxe logo-1

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.

sample

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!

The HBCUpreneur Corner – Morgan State’s Jarrett Carter, Sr. & Carter Media Enterprises

carterlogo

Name: Jarrett Carter Sr.

Alma Mater: Morgan State University, Class of 2003

Business Name & Description: Carter Media Enterprises, a new media development and consulting company with focus on coverage of African-American news and lifestyle.

What year did you found your company? 2008

What was the most exciting and/or fearful moment during your HBCUpreneur career? One of the most exciting highlights of my career thus far was the chance to give the keynote address to Hampton University’s Greer-Dawson-Wilson Student Leadership program. To take a stage at one of the nation’s most prestigious HBCUs headed by perhaps the greatest black college president in history, and to speak to students who will soon become esteemed leaders in a wide range of fields is something I will never forget. And I will be forever grateful to Hampton University for such a honor.

jcarter

What made you want to start your own company? Understanding that media was changing in a way that would give more black people a chance to have media leverage and credibility, I thought that I would bring a unique perspective to some underrepresented elements of our culture, and so I started a series of blogs focusing on HBCU news and issues, black images in mass media, and hip-hop culture from an artistic perspective. (StereotypeSquad.com and RapReservoir.com, respectively.)

Who was the most influential person/people for you during your time in college? Morgan gave me so many great role models. Among my professors was Frank Dexter Brown, the creator of YSB Magazine, Dr. Ruthe Sheffey, one of the world’s leading experts on William Shakespeare and Zora Neale Hurston, Dr. Michael Bayton, a brilliant scholar and professor of American literature, and Dr. Burney Hollis, my Dean Emeritus of the MSU College of Liberal Arts who to this day remains a source of humor, insight and inspiration as a Morgan Man. All of these people taught me, but also inspired me to think as a creator and observer, and not just as a student.

How do you handle complex problems? I talk to my wife constantly. She really is my best friend, my harshest critic, and the love of my life. Between her perspective and mine, we are frequently able to hash out solutions for difficult problems. I’m also blessed to have great mentors and friends, whom I can depend on to talk critical issues in my life, or even to have discourse on cultural problems and issues. Many times, the discourse is a good way to exercise the brain in such a way that complex personal problems often reveal simple answers.

What is something you wish you had known prior to starting your company? I wish I had established a larger network of media industry contacts and officials at schools. Hampton President William Harvey once told me that the key to running a college is to run it as a business with educational objectives. I set out to tell stories and to improve perceptions about HBCUs, but if I could do it over again, I would have managed my company to operate as a media brand with outreach objectives from Day One.

What do you believe HBCUs and colleges of the African Diaspora can do to spur more innovation and entrepreneurship with their students and the local community? – I think that if colleges and universities mandated for the major courses to examine ownership and business building, our students would have a different outlook on what it means to be a professional, a community member and philanthropist. They would approach work from what they could own one day, and not what company is most prestigious to work for. In turn, I think our alumni and supporters would buy into this concept enough to support by giving money and expertise.

How do you deal with rejection? When I first got started, not well. I would buy into the stereotype that black people were hesitant to support their own. But three years in, I understand that when you don’t have a lot of resources, and you are a great idea with low-level executions, our people are much more likely to invest in a personality and vision than they are an actual product. Paul Quinn President Michael Sorrell once told me that there’s no such thing as ‘no,’ only ‘not yet.’ I have found this to be true at a professional and personal level, if you invest a lot of time analyzing your vision and personality, and working to make those things come to the front of every approach you make in business or in life.

When you have down time how do you like to spend it? I’m a very simple guy, so I love being with my wife and two sons. Watching sports, playing video games, and reading are the ways I get away to think about new ideas, or to just take my mind off of overwhelming topics, requests or development strategies. I’ve learned that you have to incorporate time off to let your mind, body and spirit recover from fully investing in your calling. If you don’t, you can’t appreciate the work that you’re called to do, or the fact that you are called to do it.

What was your most memorable HBCU memory? Strangely enough, graduating from a PWI with my master’s in communication management. The five years it took me to finish that degree – a year and a half to do course requirements and three years to assemble a non-racist, supportive thesis committee, were the toughest times I ever encountered. Finishing the program made me realize several things – one, how much tougher it must have been for our forbearers to seek and endure integration in the throes of civil rights. Two, how spoiled I was by the HBCU experience of having faculty push and support you beyond the classroom. Three, how much harder I need to work for HBCUs to get fair representation in the media, so that they won’t have to endure potential scenarios of isolation, racism or discrimination at a PWI as they work towards college degrees.

In leaving is there any advice you have for budding HBCUpreneurs? – College is a professional development and networking haven. You are there to learn about an industry, and to find your place within it. If you aren’t a business major, take some business courses for electives, and learn all that you can through volunteering and internship about how to do a job and manage a product. Before you leave, make sure that you have incorporated an LLC, and even if you don’t know what product or service you can offer, create a business idea that can evolve into a business plan. In a down economoy, it is the person with the most creativity, the most innovation, and the one who finds a need to fill that will become wealthy, and will be able to give back to our people to build more entrepreneurship in our communities.