Black-owned businesses are booming.
Contributing over $206 billion annually to the economy and supporting 3.56 million American jobs, companies like Calendly, SheaMoisture, and Esusu Financial are among over 100 Black-owned startups that have achieved unicorn status with over $1 billion-plus valuations. Multi-million-dollar acquisitions like Compass Diversified’s purchase of The Honey Pot underscore the growing economic power of Black-owned companies. While headlines celebrate these successes—as they should—they remain exceptions rather than the norm. Despite the surge in Black entrepreneurship, significant funding gaps persist, with approximately 71% of Black-owned startups denied VC funding compared to only 12% of their white-owned counterparts.
Assessing success through the lens of oppressive historical context can skew perspective. Surpassing benchmarks set under discriminatory conditions is a flawed measure demanding broader evaluation. In comparison, only 1% of Black business owners are able to obtain loans during their founding year, compared to 7% of white business owners. Federal Reserve data shows that loan applications from Black business owners are rejected at more than twice the rate of their white peers, and even when they do secure loans, they face higher interest rates averaging 7.8% compared to 6.4% for their white counterparts. These funding disparities paint a troubling picture beneath the surface of celebrated Black business growth.
Recognizing these challenges, PNC Bank and Howard University joined forces to establish the Howard University & PNC National Center for Entrepreneurship. The groundbreaking initiative aims to bridge the funding gap and empower Black entrepreneurs through a variety of programs and resources. Leveraging the strengths of both institutions, PNC, one of the largest diversified financial services institutions, brings extensive financial resources and expertise, while Howard University, a prestigious HBCU, offers unparalleled academic excellence and a deep commitment to the Black community.
Howard University & PNC National Center for Entrepreneurship leaders Erin Horne McKinney, National Executive Director, and Dr. Johnny Graham, Associate & Regional Director delve deeper into what Black entrepreneurs need, how this initiative seeks to help them, and what attendees can expect from the upcoming “Black Commerce: The Future of Entrepreneurship” conference.
An Ecosystem for Black Entrepreneurs
The Howard University & PNC National Center for Entrepreneurship extends beyond Howard’s campus, leveraging a regional structure with four leading HBCUs: Morgan State University, Clark Atlanta University, Texas Southern University, and Howard University. “HBCUs are one of the greatest assets we have, not just as institutions but as large scale businesses with real estate in Black communities. There are a lot of different ways that can be leveraged. So we’re using our HBCUs as test grounds to pilot curriculum, programs, and resources for Black entrepreneurs, making sure that they’re culturally competent, and then sending it out across the country,” McKinney explained. This approach allows for effective coordination of programs and activities across all HBCUs, including educational programs, research strategies, and business outreach initiatives.
Unlike many corporate entities that made grand promises to address systemic inequities perpetuating the racial wealth gap, this commitment goes beyond mere post-2020 lip service. The PNC Foundation has backed its words with action, providing a five-year, $16.8 million grant to chip away at the funding gap from multiple angles. The investment supports scholarships, loan programs, and educational initiatives specifically designed to empower aspiring Black entrepreneurs.
“PNC made a bold move to create this innovative national entrepreneurial network across all HBCUs to support black entrepreneurship broadly,” McKinney told ESSENCE. Through this partnership, PNC and Howard University are poised to drive real change to empower the next generation of Black business leaders.
Building Ecosystems: Uniting HBCUs and Entrepreneurs for Success
In-person engagement is a fundamental element of the plan, as studies show entrepreneurs involved in networking events and mentorship programs are three times more likely to succeed. To bridge this gap, the Howard University and PNC National Center for Entrepreneurship prioritizes live interaction. The “Black Commerce: The Future of Entrepreneurship” conference directly addresses this issue.
What truly sets it apart is its unique ecosystem, bringing together HBCUs and a convergence of power players in the entrepreneurial sphere. “The design was purposeful,” says Dr. Johnny Graham, Associate Director of the Howard University and PNC National Center for Entrepreneurship. “We wanted to intentionally build something that helps grow local, regional, and national ecosystems,” he explained. “So, if you look at our registration for this year—you take a student from Morehouse attending their first-ever entrepreneurship event, and put them in the same room with an investor from Atlanta with venture capital funds. They’re connecting with a politician working on policy to benefit HBCUs and entrepreneurship. They’re sitting in workshops with a professor from Texas Southern or another HBCU – that’s the model. Having all the resources in the same space allows Black entrepreneurs to benefit from connections, additional learning, and best practices across all HBCUs.”
Black Commerce: The Future of Black Entrepreneurship
This second annual event takes place June 19th-22nd at the Gaylord National Resort and Convention Center in National Harbor, MD, fostering face-to-face interactions among Black entrepreneurs, investors, and mentors, creating a space for building meaningful relationships that pave the way for long-term success in overcoming funding and growth barriers. Kicking off with an opening Juneteenth Celebration and the launch of the Mecca marketplace, the event features conference panels and workshops running June 20 and June 21 and culminates in an awards gala closing out the festivities on Friday, June 21st.
Responding to last year’s enthusiastic reception, McKinney says, this year they’re extending the event: “To give people more time to network and hang out, we’re extending it through Saturday morning with Black Tech Saturdays, led by a group out of Detroit that travels around the country and hosts these huge, large-scale events. So, we have a lot happening, and so we’re super excited about it.”
With live performances by Grammy-nominated artists, including Eric Roberson, and esteemed panelists such as Bea Dixon, CEO and Co-Founder of The Honey Pot Company, Baron Davis, Founder, Investor, and Former NBA All-Star, and musician, host, and entrepreneur, Phonte Coleman, it’s sure to be a beautiful event, delivering a remarkable convergence of talent, expertise, and inspiration.
