News — entrepreneurship

Most kids like to enjoy a bowl of cereal in the morning for breakfast. For one Black male entrepreneur, his love of the treat inspired him to develop his own brand of cereal dedicated to offering more representation of Black culture for youth.

Connecticut-based Nic King is the owner of Proud Puff Cereal, a vegan-friendly cereal featuring characters representing various aspects of African American culture. He came up with the idea in the middle of the night and said the idea behind the box design was to offer a positive representation of a Black family and household with his characters.

“I was sitting up in my bed and pulled out my phone and started scrolling in my phone seeing all these scenes from Minneapolis. And seeing a lot of companies talking about their initiatives involving Black creatives and going forward to help out the Black community,” King said in an interview with The Darien (CT) Times. 

 “The whole box has meaning, from the characters to a two-parent Black household, to the positive affirmations on the back of the box, as well as the facts on the side about iconic Black legends that helped shape our culture”

King revealed on his Instagram page that he has already received 1,000 pre-orders for his cereal and shared the company’s progress toward mass production. This brings the total to 4,000 since the new year began. He explained that he is looking for a larger crowdfunding platform to raise funds to grow his products and capital to produce large quantities for customers.

“In today’s climate, I believe a product like this is so important. We’ve been dealing with blatant racism, why Black Lives Matter Too, Diversity Inclusion, Systemic racism and so much more,” King writes on his website. “This cereal isn’t only for black people but rather it is a cereal owned by a black man. This is a cereal any and all families can enjoy as they start their morning on a journey to having a great day.”

South African-born entrepreneur Elon Musk has seen his fortune rise to $195 billion, making him the richest man on earth, according to Bloomberg Billionaires Index. Until Thursday, Amazon founder Jeff Bezos was the richest man in the world with a net worth of $185 billion.

The Space X and Tesla founder was pushed to the top spot after shares in Tesla rose by more than 6 percent on Thursday. Since the start of 2020, Tesla’s capitalization has grown from $80 billion in January 2020 to just over $760 billion as of Thursday, according to NBC News, while his personal fortune rose by more than $150 billion last year.

The new evaluation is more than eight times the combined values of the traditional “Big Three” U.S. automakers — GM, Ford and Fiat Chrysler, NBC added.

“How strange,” Musk tweeted Thursday. “Well, back to work …”

“Musk’s wealth surge over the past year marks the fastest rise to the top of the rich list in history — and is a dramatic financial turnaround for the famed entrepreneur, who just 18 months ago was in the headlines for Tesla’s rapid cash burn and his personal leverage against the company’s stock,” CNBC wrote. “Tesla’s rocketing share price — which has increased more than ninefold over the past year — along with his generous pay package have added more than $150 billion to his net worth.”

Musk started 2020 worth about $27 billion and was not among the top 50 richest list. However, he passed Warren Buffett to become the seventh-richest person in July. He gained more wealth than Bill Gates to become the second-richest person in November and has since gained more wealth over the past 12 months than Gates’ entire net worth of $132 billion, according to CNBC.

While Bloomberg’s Billionaire Index ranks Musk as the richest man in the world, Forbes’ Real-Time Billionaires lists Bezos ahead of him. Bezos tops Forbes’ list with $184 billion while Musk comes in second with $177.2 billion.

However, according to CNBC, Forbes evaluation did not include the value of Musk’s options, which he received as part of his pay package, to buy more than 33 million shares of Tesla.

Last year, Musk’s Space X launched two crewed missions to the International Space Station, the first of it in the U.S. since NASA retired its space shuttle fleet in 2011, according to space.com. In all, Space X launched 26 missions in 2020.

Dwight Neptune was studying electrical engineering when he picked up drone making as a hobby in high school. Little did he realize that his hobby would morph into establishing a drone company at the age of 18.

He is now the CEO of a drone startup, Beagle Drones. “I wanted to build something that people enjoy and saw FPV as the entryway to building really cool tech products,” he told CNBC.

Together with his friends, Neptune created a prototype of FPV drone off-the-shelf parts. They later sold it in May 2017 to test the market. It worked for him and his colleagues and that was how he created Beagle Drones.

He later dropped out of Mercer County Community College to work as full-time CEO of Beagle Drones. In October 2020, the company said it was on track to make $100,000 in sales that year. According to Neptune, he is working to raise $1 million at a $4 million valuation.

Neptune is envisaging some challenges in terms of raising funds to finance the company’s operation. His fear is well-grounded as multiple publications have pointed out the difficulties Black founders encounter in raising venture capital.

According to Harvard Business Review, Black founders received less than 1 percent of venture capital. Also, 81% of venture capital funds have no Black investors while 70% of VCs are White and only 3% are Black. 

“I’ve been with several VCs, angel funds, and nine times out of 10, I’m the only Black founder there,” Neptune told CNBC. “Our team is extremely diverse by default because our C-suite and our founding team is diverse, and it just attracts other people that want to work with a diverse group.”

Neptune dreams of becoming one of the household names in the tech space and one of the first Black founders to pull off a billion-dollar tech company. On its website, Beagle says it operates on the concept: “A one-stop shop for beginners to experience drone racing.” “It’s easy,” it says, adding: “We do all the hard work, so you don’t have to.” 

The New Jersey-based company which sells two different drones — priced at $130 and $400 — released its third drone, NOVA, on Kickstarter last November. NOVA is described as “a ready-to-fly, FPV drone equipped with a built-in 4k camera and lightweight cyberpunk shell design.” Its lightweight design makes it ideal for travel and for both indoor and outdoor flight.

The coronavirus pandemic not only disproportionally affected Black-owned businesses, but it has also delayed the opening of many companies led by Black people.

In the midst of all the uncertainties in the business world, particularly over concerns whether existing and new businesses could make a profit, three Kentucky brothers have defied all odds in a pandemic era to roll out their own distillery.

Known as Brough Brothers Distillery, it is the first and only Black-owned distillery in the state of Kentucky. It was founded by brothers Victor, Bryson, and Christian Yarbrough who were born and raised in Louisville, Kentucky. Their ambition was fueled by their desire to operate a Black-led distillery in a sector that has been widely dominated by Whites. Their distillery will provide job opportunities and economic growth for the community of Park Hill, a historically underserved area of Louisville’s West End, according to a press release announcing the commencement of operation of Brough Brothers Distillery.

“Brough Brothers has an opportunity to not only provide employment opportunities for our local community but also design an experience for locals and tourists in the heart of one of Kentucky’s cultural hubs,” Brough Brothers CEO Victor Yarbrough said. “At a time in history when there is much attention on Louisville, we are excited to represent positive change and hope for and on behalf of our city.”

Currently, Chris and Bryson serve as the company’s chief marketing officer and chief operating officer, respectively.

The Federal Alcohol and Tobacco Tax and Trade Bureau first approved Brough Brothers Distillery in August 2018 and was recognized by Kentucky’s Senate as the state’s first African American-owned distillery in August 2020. It was subsequently approved by the Kentucky Alcoholic Beverage Control Board in September.

Meanwhile, its bourbon shop will be open for business to bourbon enthusiasts by appointment only in spring 2021. So far, customers have praised the product for being one of the smoothest on the market.

“I hope people are able to come to the West End and see a rose in the concrete, and are able to see there’s beauty there, there’s people willing to improve the community there, and we would like to see other businesses come in, as well as tourists and other supporters, to not just support our business, but surrounding businesses in the area,” CEO Yarbrough said in an interview.

Brough Brothers currently has major distribution partnerships in five states, including KY, FL, TN, IN, and CO. It will expand its distribution to another 20 states in early 2021, the release said.

The world of work can sometimes be vulnerable to shocks and global events leading to job cuts or losses. For instance, the COVID-19 pandemic has affected the revenues of many companies, resulting in job cuts and dismissals.

Before the pandemic, hiring and firing was a normal occurrence in the world of work. Many adapted, nonetheless. Others found jobs elsewhere while others decided to open their own firm or become their own boss.

Such is the story of Patrick Glanville, who is very skilled in making chocolate. After years of going through the horrific experience of being dismissed, rehired and fired again, he felt he had had enough and wanted to be his own boss.

Glanville launched his own chocolate company, 3 Some chocolate, a chocolate brand that combines 3 flavors into 1, and offers it in a pack of 3. The company was created by his desire to utilize his skills as an artist and culinary artist, according to Blackbusiness.

Since he established the company in 2017 with his partner, Kristin Parker-Glanville, it has recorded more than 400,000 units sold with over 75, 000 customers dotted across the United States and beyond. It recently saw a spike in online sales, making over $130,000 in less than a month.

Born and raised in Southside Jamaica, Queens, Glanville learned the art of chocolate making from his grandmother at the age of 10. He became a certified chocolatier after studying at the Barry Callebaut Chocolate Academy in Lebbeke, Belgium alongside his partner, Kristin.

Kristin, born in Lower East Side of Manhattan, doubles as the CFO/Co-CEO of 3 Some Chocolates. She also has a background in business administration, operations and finance. Her job includes working to protect the company’s brand.

With his background in graphic design, management, and sales, Glanville created the design of the products as well as the website and recipes while being in charge of marketing.

Just like many Black startups, securing funds to expand the business is often difficult. According to the Harvard Business Review, Black founders receive less than 1 percent of venture capital. Black women founders represent less than 0.2% of companies that receive such funding. Also, 81% of venture capital fund have no Black investors while 70% of VCs are White and only 3% are Black.

To overcome funding challenges, Glanville and his partner launched a CrowdFunding campaign where many investors have come on board to join their chocolate journey. Glanville has, as of Saturday, raised $301,236 on Wefunder. 

Did you know that by the end of this year, more than 50 million people could experience food insecurity, according to Feeding America, the country’s largest hunger-relief organization? That’s one in six Americans and one in four children — nearly a 50 percent increase from 2019.

Giving in various capacities happens all year long, but there is something extra special about the holiday season. One thing about it, there is always a need that can be fulfilled in our communities.

Houston’s own FOREX mogul and network marketer, David Imonitie, along with his team of supporters, fed 1,000 families through his I Believe Foundation. Last week, they hosted a Turkey and Food Giveaway at Faith International Church and provided free meals, food, gifts, music, and loads of family fun.

The I Believe Foundation was established in 2013 and was created to facilitate transformative thinking for youth and young adults by enhancing their belief system. Belief is the bridge between where you are right now, and where you desire to be, says Imonitie. At the heart of the nonprofit is the notion that individuals can change their lives and current status with a positive outcome by raising awareness and creating belief in something greater than themselves.

The foundation’s signature event is its annual “Magic of Believing” gala that celebrates accomplishments and milestones while raising funds for the next year’s work and initiatives across the globe. The gala will take place on Jan. 10 in Houston and will be a magical night of giving and receiving. The foundation will support humanitarian efforts and global initiatives such as SARS in Africa; in addition it will provide grants and awards to other nonprofit organizations, 501(c)3 entities, churches, and ministries.

I Believe in Change is one of the foundation’s initiatives that increases awareness and currently is challenging others to make a change by impacting the community and tackling such issues as:

• Feeding the community
• Providing COVID-19 testing for those who can’t get access
• Engaging in police reform to institute change
• Providing youth education and literacy
• Offering healthcare in urban communities

Here’s a thought-provoking statistic: A whopping $290 billion would be created in Black wealth if the revenue gap between what Black-owned and white-owned businesses generate were equal.

That discovery came from building supportive ecosystems for Black-owned U.S. businesses, a fresh report from management consulting firm McKinsey & Co. reveals. The research showcases the hurdle Black entrepreneurs face and provides answers that the public, private, and social sectors can implement for equitable and positive business outcomes.

The report notes the right business ecosystems can mitigate or negate the effects of structural obstacles to the business building for Black business owners, adding $290 billion in business equity. The report released in late October found entrepreneurship and business ownership — particularly of community-based businesses— are crucial ways to develop community wealth for both business owners and their employees. Further, healthy Black-owned businesses could be an essential way for closing America’s racial wealth gap, which is projected to cost the economy $1 trillion to $1.5 trillion annually by 2028.

The COVID-19 crisis has further stressed Black-owned businesses and threatens to widen the racial wealth gap. This gap includes a $200 billion revenue opportunity that Black business owners are missing out on if they were to achieve revenue parity with white-owned businesses, translating to lost wealth and up to 850,000 jobs through 2021 due to increased liquidity constraints.

Asked what were among the report’s most stunning findings, McKinsey associate partner John-Paul Julien said “our report states that while nearly 20 percent of the 12.3 million women-owned businesses in the U.S. are owned by Black women, Black women experience significant economic and institutional barriers due to their race and gender.” For example, Black women are disproportionately shut out of venture capital funding, which can rapidly fuel business growth. Women of color receive less than 0.2 percent of VC funding, and at 4 percent of funded U.S. start-ups, Black women founders are underrepresented and underfunded. Indeed, the average Black woman-led start-up that received funding raised only $42,000.

The McKinsey report also offered some potential solutions to help create more economic parity for Black-owned businesses:

Apply policies that produce equitable outcomes

The public, private, and social sectors can help remove institutional barriers for Black-owned businesses and ensure laws, policies, and practices produce equitable opportunities and outcomes. For instance, procurement practices, especially at anchor institutions and large organizations, can evolve to be more inclusive of Black-owned businesses. Along with dedicating funds to procurement from Black-owned businesses, large organizations could simplify their minority-supplier certification processes to add new suppliers more quickly and dedicate funding to supplier-development programs that can help Black-owned suppliers better participate in supply chains.

Provide equitable access to capital

To help overcome economic barriers, Black-owned small businesses (SMBs) need direct investment or equity contributions, including grants, subsidies, loans, and revenue-participation agreements. Direct investment is especially key during COVID-19. McKinsey’s analysis suggests that an additional $7.6 billion to $15.4 billion in liquidity for Black-owned SMBs in the 2020-21 time frame — less than 3 percent of the $659 billion authorized under the Paycheck Protection Program — could preserve 460,000 to 815,000 jobs, for an average of $9,325 to $33,478 per job. Funding sources are also needed for Black entrepreneurs starting up or expanding. Banks, conventional and social impact investors, foundations, and public programs could make more capital available to Black-owned businesses. Possible programs include ones that make extending capital to Black-owned businesses less risky through measures such as guaranteeing funds and programs that help entrepreneurs from marginalized backgrounds acquire more capabilities.

Build business capabilities and facilitate knowledge sharing

To conquer market barriers, Black-owned SMBs need support for building capabilities and sharing a greater amount of knowledge. The private and social sectors — particularly anchor institutions — could provide resources. That could include offering help with reskilling and upskilling Black-owned businesses’ workers to make Black-owned SMBs nimbler. Many Black-owned businesses lack the resources to hire service providers that can help them digitize their businesses, but private-sector and social-sector organizations can provide free technology services and managerial assistance.

Expand opportunities for mentorship and sponsorship

Representation and participation in networking, mentorship, and sponsorship programs can help Black entrepreneurs overcome some sociocultural barriers. Private companies should take the lead by building more inclusive teams. Further, managers at every level should consciously develop — and sponsor the careers of — more Black leaders to counteract the effects of structural bias. Indeed, only about 3 percent of current Fortune 100 company CEOs are Black, and fewer than 4 percent of those oversee departments’ profit and loss functions. Those that tend to accelerate career progression for Blacks. Moreover, unconscious bias can affect mentorship and sponsorship, because humans tend to gravitate toward mentoring people they view as similar to themselves.

Community programs can help Black entrepreneurs connect with role models and commercial networks that can help Black prospective entrepreneurs pursue business ownership with more confidence and support. For instance, the private and social sectors could facilitate networking and partnerships between established businesses and compatible start-ups.

An investment in more business ecosystems that provide Black business owners equitable access to resources and opportunities can unlock part of the $1 trillion to $1.5 trillion in annual GDP that would come from closing the racial wealth gap, the report surmises. It adds, more importantly, by making social and economic institutions supportive of a wider swath of people, stakeholders can rectify the mistrust that has developed between Black entrepreneurs and institutions.

William Michael Cunningham, an economist who runs Creative Investment Research, had mixed reactions to some of the findings in the McKinsey report. He told via email a statement in the report that “Black Americans have never had an equal ability to reap the benefits of business ownership” is correct. But Cunningham maintains that Black businesses have continued to survive and innovate in what must be considered one of the most hostile environments for Black people on earth.

“The system of white supremacy that relies on the theft of resources from Black people has severed to limit the ability of Black business owners to fully reap the benefit from their labors.”

Cunningham added the report errs in several ways. For example, he says, Black-owned businesses don’t earn lower revenues and are overrepresented in low-growth, low-revenue industries such as food service and accommodations because they want to perform poorly.

“A reluctance to use Black-owned firms outside of these industries leads to overrepresentation,” Cunningham says. “They are limited to those fields. One policy prescription is to put into place a set of government policies to eliminate these barriers.”

Black business owners will get a hefty $20 million venture capital funding commitment courtesy of Northwestern Mutual Future Ventures.

The venture capital arm of Milwaukee-based life insurance and financial services giant Northwestern Mutual will invest the money in startup companies founded by Black entrepreneurs. Plans also call for the launch of the Northwestern Mutual Black Founder Accelerator, a new startup accelerator powered by nationally ranked startup accelerator gener8tor.

The company reports the new initiatives are part of its ongoing commitment to fostering diversity and inclusion and driving equity through innovation.  On the venture capital front, the funding is needed. Northwestern Mutual reports Black founders receive less than one percent of venture capital funding annually. It added Northwestern Mutual and gener8tor are committed to investing in and supporting Black entrepreneurs to help close this funding gap and advance their companies.

“At Northwestern Mutual we’re dedicated to supporting and promoting diversity not just within our company, but within our communities and the businesses we partner with nationwide,” John Grogan, chief product and innovation officer, Northwestern Mutual stated in a news release. 

“Allocating $20 million is only the beginning – we will continue to invest in and provide opportunities for Black founders and are committed to providing access to capital and resources to help them grow their businesses.”

Northwestern Mutual Future Ventures claims it is focused on advancing the company’s investment strategy of engaging startups whose technologies have the potential to transform how people experience financial security. It declares investment criteria for the $20 million Black founder funding allocation is aligned with the fund’s key strategic areas of focus:

• Building for consumers’ changing financial preferences
• Reimagining the client experience
• The digital health revolution
• Transformational analytics and technologies

“Innovative thinking is required to drive breakthrough solutions to close the racial equity gap, and by supporting Black founders through Northwestern Mutual Future Ventures and the new accelerator program in partnership with gener8tor, we can make a difference to close this funding gap,” stated Abim Kolawole, vice president, digital innovation, Northwestern Mutual. “Our company’s Sustained Action for Racial Equity task force, which launched earlier this year, is looking at racism and inequality from every perspective. These initiatives will drive change and create impact within our company and communities.”

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Co.

Further, The Northwestern Mutual Black Founder Accelerator is gener8tor’s first accelerator exclusively focused on advancing Black founders. The 12-week accelerator will run up to two cohorts of five companies a year and startups must be aligned to Northwestern Mutual Future Ventures’ investment areas of focus. The first cohort will begin in early 2021.

After extensively researching the domestic and international cigar industry, the owners of Emperors Cut Cigars discovered an interesting finding: With the explosive growth of African American smokers there was a niche for them to enter the space with a quality cigar and attract customers.

They were convinced with the right product they could compete in the general marketplace domestically. Understanding that the sales cycle would be longer, they, nonetheless, were confident that they would capture both mind and market share. Three years after its launch, Emperors Cut Cigars (EC) is steadily making headway into America’s fruitful cigar business that generates over $9 billion in annual revenue.

Like other U.S. businesses feeling the sting of COVID-19, Emperors Cut turned to online and social media channels to help boost sales.

In January 2020, the business planned for 30% of its revenue to come from online, says Darnell Streat, managing partner and founder of The Emperors Group L.L.C., owner of EC. But two months later, normal revenue from cigar lounges and events went to zero in seven days due to COVID-19. That forced the business to rely on its online platform for 100% of revenue for March and April.

“Looking back this was a blessing for our online business model,” Streat says. “COVID-19 forced us to revamp our website and find new ways to market to our customers. We had to embrace social media and execute more in the digital marketing space as a replacement to our normal face-to-face marketing approach.”

To do that, the firm aggressively started marketing its products on social media. That included creating digital content for Zoom happy hours and partnering with spirit companies like Uncle Nearest and Remi Martin. The business also benefited from the nation’s rising racial tensions that gave Blacks a greater desire to support local businesses. Streat says customers started promoting his company to other African Americans cigar enthusiasts. He pointed out that people also put lists together of African American cigar companies and denounced a few majority companies that didn’t support people of color.

“Little by little, more orders started coming in online along with a new awareness for our cigar products. Our customer service and open approach with our customers were starting to pay dividends in customer loyalty and increased sales.”

Now, EC has new growth plans and aims to puff up sales by expanding online and globally.

“As we move into the fourth quarter, we are exploring ways to develop markets in Europe, Africa, and Canada, Co-owner Greg Willis says. “We have a small number of international customers that we would like to continue to grow in a structured manner.”

He claims American products still have a level of mystique and interest in other parts of the world as luxury items. As well, Willis says in those targeted countries English is a dominant spoken language. “We think this positions us well to introduce, market, and sell our cigars to smokers in those areas.”

Streat says EC hopes to achieve annual sales exceeding $3 million by 2025, with most of the growth coming from international expansion.

The company’s business model thus far is apparently working. EC reports 2020 monthly revenue is growing 43% over the 2019 year to date. For all this year, the business is projecting revenue of $250,000, up from around $175,000 in 2019 and $75,000 in 2018. It plans to focus on driving growth in Q4 2020 from these buckets: direct to consumer (online), retail shops and lounges, and big-box retailers.

The company reports it is on pace to sell over 50,000 cigars this year

Overall, observers say the cigar business is profitable. Though smoking is tied to health risks and subject to laws that ban smoking in public places, cigars are chic with people from multiple backgrounds. The business is alluring to entrepreneurs because it includes an established market with people who already smoke cigars as well as many prospective buyers. While it can be challenging to penetrate the market, insiders report operators in the business can achieve success if they target a strong core of customers.

Still, trying to upscale EC has not been a cakewalk for Streat, Willis, and their five partners since they started the Houston-based company. Streat says capital acquisition to grow in key areas such as procure inventory, product development, backend technology innovation, and marketing remains the biggest hurdles to overcome. Other hindrances include conquering federal and local government regulations that suppress smoking indoors, most outdoor venues, and any place not deemed a smoking establishment or zone. Brand recognition is another obstacle but Streat says the firm has been effective at leveraging social media, podcasts, and word of mouth to extend the brand where the cigars are sold.

Plus, EC is competing in an industry reportedly long prevailed over by whites and Latinos who have shut out or restricted Black cigar brands or enterprises from their establishments. But Willis counters that has not been the case from his firm’s perspective. He agrees the industry is competitive but added EC has not experienced any hostility.  In fact, he says his firm has been welcomed by industry colleagues.

“The sales cycle is a bit slower with predominantly owned and patronized white cigar shops but we understand cigar placement in a humidor is akin to prime real estate, and competitive. So, owners need to know they can turn quickly the inventory they invest in. This is not an unreasonable approach, so we operate accordingly within the sales process.”

Some empowering news for EC is there is a growing number of Black Americans finding pleasure from enjoying a stogie or stick in their leisure time. Black adults accounted for nearly 36% of cigarillo smokers, 24% of non-premium cigar smokers, and 5.3% to-15.7%, respectively, of smokers of premium and filtered cigars, a 2017 report by the Society for Research on Nicotine and Tobacco shows.

To help capture a larger share of those smokers, EC has a physical sales presence in Atlanta, Miami, Florida, Houston, Washington, D.C., and Norfolk, Virginia. The business reports it is now in 19 states and 95 lounges and retail outlets, up briskly from 10 states and 40 retail outlets at this time last year.

Interestingly, like some other Black-owned businesses in various sectors, the cigar company has benefitted from COVID-19. Willis says cigar smokers love the pleasure derived from smoking a good cigar. “COVID-19 may have had an impact on their lives but it did not diminish their desire to enjoy a good smoke.”

Further, he pointed out there was a deep feeling within the Black cigar smoker community because of the murder of George Floyd and the prominence of the Black Lives Matter movement. He said many began to seek out Emperor Cut Cigars and other Black-owned cigar brands, adding that it has been good for business.

“Upon reflection, it is true our fight for mind share and brand awareness among Black cigar smokers became easier as a result of these unfortunate events,” Willis says. “Still, there is a lot of runway ahead of us to curate business within the Black cigar smoking community. It remains one of our biggest opportunities.”

The economic fallout from the COVID-19 pandemic has been devastating for U.S. small businesses, with many experiencing dramatic declines in revenues and cash liquidity following the government-mandated closures that began in March. The effects of the economic downturn have been especially severe for Black-owned businesses— many of which entered this crisis undercapitalized.

As a step toward helping black-owned businesses recover and move forward, a coalition of four business advocacy groups — the National Minority Supplier Development Council, US Black Chambers, National Urban League and Black Enterprise — have partnered with JPMorgan Chase to launch Advancing Black Entrepreneurs by Chase for Business. Together with Chase Business Banking, these organizations have developed an educational curriculum designed specifically for eligible black entrepreneurs on key topics that are vital to business growth and sustainability.

Kamal Grant, owner of the Atlanta-based Sublime Doughnuts and a Chase for Business client, shared his insights about why it is critical for Black entrepreneurs to have relationships with banks and the importance of new programs like Advancing Black Entrepreneurs.

“I am excited to be a part of this program. It is a tough environment for Black entrepreneurs, and it is great to see Chase have this curriculum to develop the in’s and out’s of a well-oiled business,” Grant says. “Seeing a program like this can help us address the important issues and bring people together to have positive discussions. It’s important to learn how to grow your wealth and build on that.”

Black-owned businesses experienced a 26% decline in cash balances in March compared to the prior year, according to the JPMorgan Chase Institute, and could require more recovery assistance than others due to severe revenue shocks in recent months.

Participating entrepreneurs also receive instruction on how to reimagine their businesses if necessary— with insights into how to build more flexibility into supply chains, develop an online presence, revisit staffing models, and a primer on accounting best practices for new grants or loans they may have recently received. In addition, the course will provide insights into how to manage banking relationships in this environment.

“Black entrepreneurs play a vital role in the economic health of black communities, and it is critical that we equip them with the necessary tools and insights at this time,” says Adrienne Trimble, president and chief executive officer of the National Minority Supplier Development Council. “We’re looking forward to working with the coalition and Chase Business Banking to position black-owned businesses for success and prepare them for life after the crisis.”

Changing business models

As many retail bakeries are learning, a new business model is needed to capture and sustain business growth. Slowly but surely, sales are picking back up this year, and sales of donuts – which Grant calls a “natural takeout food” – are building, thanks to a budding delivery business for the bakery.

“People started coming out and taking donuts home for their families, and a lot of people in Atlanta started supporting Black businesses,” Grant explains. “Atlanta showed up, and that’s been really good for us. Sublime is needed in this new world order.”

Sublime Doughnuts is nearing 12 years in business as one of the most innovative donut shops in the country. The retailer operates two locations in Atlanta, in addition to two locations inside the Mercedes-Benz Stadium, home to the Atlanta Falcons of the National Football League.

As the creative mind behind Sublime Brands’ distinctive doughnut and bakeshop concept, Grant demonstrates a love for baking and bringing smiles to customers’ faces that can only be described as awe-inspiring. “I realized at a very young age that sweets make people happy, and that’s what I wanted to do with my life,” he says.

When an executive from Dunkin Donuts visited Grant’s high school foodservice class and discussed his trips to the doughnut research and development lab to taste the experimental treats, it sounded pretty sweet. After graduating, Grant joined the Navy and used his enlistment as an opportunity to pursue his dream of becoming a world-class baker. Serving as a baker among the E4 – 3rd Class Petty Officers on the USS John Young, Grant’s cinnamon rolls quickly gained the praise of his shipmates.

In addition to an opportunity to bake, his travels with the Navy also exposed him to international culinary treats and exotic flavor and texture combinations. Singapore’s ice cream sandwiches made with multi-colored bread and sweet red bean soup, Australia’s malt chocolate beverages and Dubai’s shawarma and rosewater forever changed Grant’s approach to baking.

“While traveling around the world in the Navy, I learned that pastries weren’t just about baking; they also represented culinary art,” says Grant.

This newfound artistic appreciation led him to enroll in the Culinary Institute of America, where he focused on high-end desserts, plate presentation, classical techniques and the flavors and textures of award-winning chefs. During his time at the Institute, Grant interned with renowned pastry chef Keegan Gerhard at the Windsor Court Hotel in New Orleans. Upon graduating, he refined his skills at the American Institute of Baking, where he focused on the science behind baking. Grant put these skills to use at his first job as a supervisor at the Flowers Baking Company, learning the value of “high volume, high quality” production.

Before long, Grant’s desire to create led him to notice a rental sign for an empty shop in Atlanta that would soon become his culinary vision, known since 2008 as Sublime Doughnuts.

“At Sublime, we present flavors and textures from around the world on a doughnut canvas,” he says with a smile.

Entrepreneurship in Africa is now front and center of development efforts after spending years as the poor cousin of corporate employment.

Global multinationals are now paying attention to what was once a sub-culture of people trying to forge their own path in alternative economic enterprises and activities.

Many people in the mainstream economy used to confuse entrepreneurship with the informal sector, seeing people without a corporate job as low on the business ladder; as workers eking out a small living in markets or a corner of their homes.

But in a decade, the narrative has changed. Being an entrepreneur is now cool. They are viewed as dynamic and adventurous, open to taking risks. They are no longer shunned by the workplace, but sought after as the number of success stories grows and big money chases small enterprises with good ideas.

There are a number of reasons for this. Technology is the biggest one. Many entrepreneurs with good ideas can now realize them through the development of creative apps, software and platforms that can link thousands of people to each other in ways that improve lives and productivity.

Africans are using technology to bridge age-old development gaps and increase efficiencies in almost every sector. Technology has become a driving force to improve and disrupt the functions of the dysfunctional state, with social entrepreneurs creating the tools to improve their communities.

Demographics is also a driver. African leaders have realized that small enterprises have a big role to play in addressing the intractable, and worsening, problem of unemployment, particularly among the youth. In many African countries, people below the age of 25 represent more than 50% of the population, and they need hope.

In an interconnected and modernizing continent, governments can no longer ignore joblessness and rely on the resilience of their people to get by. Technology has not only given people tools to work; it has also given them the tools to make themselves heard.

The growing revolution has attracted the attention of big corporations. Record amounts of money have been earmarked for entrepreneurial endeavor and companies are competing for visibility in supporting this trend. EY, IBM and others have long held entrepreneurship competitions and awards ceremonies and many more have mushroomed over time. Funding is more readily available for promising startups and good ideas.

The gap between corporations and startups is closing. It is no longer the case that a big business will not give a small, energetic company or businessperson the time of day. More and more smart executives are seeing the value in exploring ideas and options that they once eschewed because the company was not of sufficient size or had no visibility in the marketplace.

Fintech leads the way

Fintech has been a clear leader in this regard, unsurprising given the market gaps on a continent with an underdeveloped financial sector and one where more than 60% of the adult population is unbanked. In closing those gaps, they are pushing multinational companies out of their comfort zone.

A new wave of smart partnerships and investment is emerging between established businesses and new entrepreneurs.

For example, Nigerian fintech startups in the payment space, Flutterwave and Paystack, have, between them, attracted investment from the likes of Visa, Tencent, and Mastercard. Flutterwave secured partnerships with Alipay and US payment company FIS.

Nigeria’s official statistics show that the volume of digital payments in this formerly cash-driven economy grew nearly 500% in 2019.

In 2018, sub-Saharan Africa was one of the fastest-growing zones for Fintech, with investment nearly quadrupling to $357m. Startups in Kenya, Nigeria and South Africa accounted for the largest share, according to The Mobile Economy, Sub-Saharan Africa 2019 report by the GSMA.

Given the intractable problems in Africa’s health sector caused by underdevelopment and government neglect, entrepreneurs are mushrooming here too.

Why Should White Guys Have All the Fun? is celebrating its 25th anniversary. The book is about Reginald F. Lewis, the legendary entrepreneur who rocked Wall Street when his firm, TLC Group, acquired Beatrice International Foods for $985 million. The purchase in 1987 helped Lewis build the first Black-owned business to exceed the billion-dollar revenue mark. At the time it was the was the largest-ever offshore leveraged buyout. It was gigantic as TLC Beatrice International Holdings Inc. became the nation’s largest snack food, beverage, and grocery store conglomerate with a global presence.

And now, an audio version of the classic book was just released. Written by Lewis and co-author Blair S. Wall, the book was a New York Times best seller. The extraordinary exploits on the life and times of the astute, courageous, and bodacious Lewis still serve today as a source of inspiration to generations of Black entrepreneurs, including those in finance, technology, entertainment, and other fields.

Before his death in 1993, Lewis helped Black Americans gain access to financing for Blacks on Wall Street. His landmark endeavors encouraged Blacks to overcome barriers like race to become business owners, corporate executives, and major growth contributors to America’s economy. Lewis’ accomplishments remain momentous though they occurred over a quarter century ago. They shine like a beacon for African Americans to keep striving for, and potentially exceed, his success in their own business pursuits. The trailblazing work by Lewis is perhaps even more amazing in that it shows how a Black man pulled off acquiring a major international company with 64 companies in 31 countries. The name of Lewis became a sign of hope. That was especially true in the Black community as many African Americans were compelled to believe that if Lewis could score such a feat, then others could possibly play in the game as well.

Lewis left an enduring mark on business history. His actions permeated with many top Black business leaders, including the likes of real estate mogul Don Peebles and BET founder Bob Johnson.

“Reggie was not afraid of going beyond what Black business was, which was privately owned companies run by family members to be passed on to family members,” Johnson told Black Enterprise eight years ago. “He got access to public capital, which gives you leverage in deal making.” Johnson is founder and chairman of The RLJ Cos., a portfolio of companies with holdings in many industries.

Also a philanthropist, Lewis donated millions of dollars to empower and help others. The Reginald F. Lewis International Law Center was the first building at Harvard University named after an African American. The Reginald F. Lewis Foundation, whose chairman is Loida Lewis, Reginald’s wife, is among the largest African American private foundations in the world. As of December 2019, the foundation had given $30 million in grants since starting, according to its website.

Black Enterprise connected with Black entrepreneurs by email to reflect on this: How did Lewis inspire them in business and how can future generations build on his legacy?

Reginald F. Lewis As Role Model

IMB Partners CEO Tarrus Richardson recalls that in July 1987, there was an article on “Mr. Lewis buying McCall Patterns for $27 million and selling it for $90 million. He had invested only $1 million and made $63 million. I was 17 years old. After reading the article I looked at my mom and said, ‘now that looks like a good job’ and from that time on I committed to getting a job in the leveraged buyout business.”

Richardson added, “You can’t be what you can’t see. Once I had the visual of a Black man making that kind of money buying and selling companies, it made it easier for me to believe I too could do it.”

Today, Richardson is founder and CEO of IMB Partners. The Bethesda, Maryland-based firm is a 100% Black private equity holding company (similar to TLC Beatrice) that makes control acquisitions and partners with management teams to grow lower middle-market companies serving government agencies and electric and gas utilities. IMB Partners has revenue of over $500 million, five portfolio companies, and more than 300 employees. It ranked No. 42 on BLACK ENTERPRISE’S Top 100 list, an annual ranking of the nation’s top Black-owned businesses.

When he started imbpartners.com in 2010, Richardson says, Loida was one of his earliest investors and has invested in all of IMB’s deals. Richardson says while his company has not made a 90-to-1 return, the company is making 5-to-1 returns on its investments and its goal is to get to over $1 billion in revenue in the next five years.

Outside of business, Richardson says he helped Christina Lewis, Reginald’s daughter, found All Star Code as its founding board chair. He reports he was the lead funder for the 2018 PBS documentary on Reginald Lewis that was a dream of Loida and the family. “I am incredibly grateful for the inspiration and role modeling both in business and in life Mr. Lewis and his family have played in my life since I was a teenager and continues to play in so many others.”