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.
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