HBCUs, SBDC Centers, and Black Opportunity Entrepreneurship Across US States

Abstract

This chapter analyzes government and HBCU action on improving rates of black entrepreneurship in the United States. Small Business Development Centers help citizens and residents become better entrepreneurs and successful business owners, and are located throughout the United States with some being located on HBCU campuses. This study responds to a 25-year declining trend noticed by Fairlie and Desai (2021) in the numbers of Americans, including black Americans, who are becoming entrepreneurs out of necessity as opposed to in response to discovering an entrepreneurial opportunity. Using regression analysis, the study analyzes data sample size of more than 45,000 entrepreneurs across 50 states and in Washington, DC in the Kauffman Early-Stage Entrepreneurship (KESE) dataset. Findings indicate that SBDCs located at HBCUs correspond to drastic increases in black opportunity entrepreneurship as opposed to necessity entrepreneurship in comparison to white and non-white minorities. Implications and suggestions are provided to HBCUs, PBIs, and government policymakers.