Habitat for Neighborhood Business (HNB) is helping take minority-owned businesses to a new level of excellence. Since 2018, program director Gladys Smith has helped mentor, locate resources, and secure funds for Black and brown business owners in St. Louis city.
That year, the HNB decided to put more traction behind the program and hired a full-time director for the mostly volunteer-based program. When Smith joined the team there were only four entrepreneurs. Today, the program is working with 50 entrepreneurs.
St. Louis has a total of 51,852 businesses, of that number 3,112 are Black-owned. That means that only 6% of businesses in St. Louis are Black-owned. Meanwhile, the Black population is 18%.
“At one point we were the best-kept secret in St. Louis, and we are invested in minority-owned businesses in the city of St. Louis,” said Smith.
Smith says HNB meets their mentees where they are professionally. The program helps members connect to local experts that can assist in guiding them on their entrepreneurial journey.
Everything the program offers is free of charge to the entrepreneurs, and they can be a part of HNB for as long as they want. The program accepts minority-owned businesses that are either established, struggling, or new. Smith says it doesn’t matter as they are willing to extend a helping hand.
HNB has open enrollment, and the only incentive is the business has to be in the city of St. Louis.
The Saint Louis University (SLU) program has been a part of the Chaifetz School of Business school since 2006, and was founded by alum Doug Brown. While traveling across the country for work he noticed the lack of minority-owned businesses in Black and brown communities.
Brown noticed the many disadvantages these communities because of a lack of businesses that reflected the community they were in. He made a vow to himself that once he retired he would start a program to help increase the number of successful Black and brown businesses. He wanted to address the lack of economic reciprocity, and the wealth gap between communities of color compared to the white communities by helping Black and brown people become their own bosses.
According to data from the Lending Tree, the U.S. Black population is 12.8%, but only 2.4% of U.S. businesses are Black-owned. Moreover, 86.5% of U.S. businesses are owned by someone white, even though white people account for a lower percentage of the U.S. population which is 72%.
A 2021 analysis from theBrookings Institutionestimates that roughly 96% of Black-owned businesses are sole proprietorships. A sole proprietor is an unincorporated business with a single owner. It can be difficult for sole proprietors to raise capital, especially for Black business owners.
The report also shows St. Louis has a total of 51,852 businesses, of that number 3,112 are Black-owned. That means that only 6% of businesses in St. Louis are Black-owned. Meanwhile, the Black population is 18%.
Brown decided to collaborate with his former SLU alum, current SLU colleagues, and the SLU administration to help bring HNB to fruition.
For the last 16 years, HNB has been a major source of resources for many minority-owned local businesses. HNB has perfected its mentor program by creating the Mentoring Forum. Ten entrepreneurs are placed in a group and partnered with an expert. The Mentoring Forum meets monthly to network, receive advice, and create mock business plans to develop their skills.
Smith said, “We are here to help these businesses not only survive but thrive.”
“We are here to help support their business and business needs.”
Travious Brooks owner of Brooks Family Entertainment has been a member of HNB since 2015 and says HNB has given him so much, connecting him to vital members of community, and local experts that would have been out of his reach had it not been for Smith and HNB.
“It’s been truly a blessing,” said Brooks.
“Majority of my education regarding how to own and operate a business has come from HNB.”
There have been times when Brooks called Smith in the middle of the night with questions and concerns about his family-owned business and says that she has been willing to help him through his confusion.
He credits HNB with helping him through a lot of fires that he has experienced as a Black male business owner. Brooks said, “If those blocks weren’t there, there wouldn’t be a need for HNB.”
A 2021 analysis from the Brookings Institution estimates that roughly 96% of Black-owned businesses are sole proprietorships. A sole proprietor is an unincorporated business with a single owner. It can be difficult for sole proprietors to raise capital, especially for Black business owners.
Brooks helps coach and mentor new members of the organization. He wants to be what HNB has been for him.
HNB gives members access to Quickbooks and partners them with business school graduate students as consultants for their business ventures. Members receive guidance in marketing and finance. The organization gives the members the same access that the students of the business school have.
HNB has a 50/50 grant program initiative, where members can receive up to 4,000 dollars to help push their business forward. Those funds can go towards hiring, equipment, or marketing. Whatever the business, the grant money can be used for them.
“Our goal is to make a difference in the underserved areas in the city where these Black and brown businesses are,” said Smith.
Smith is a native of the west end of St. Louis city and says that she remembers her community having thriving Black-owned businesses. Smith said, “Everything was in the community, and we want to help make that happen again.”
She hopes to bring more and keep more jobs in our community, HNB is here to address the lack of Black and brown entrepreneurs, and Smith is here to make a difference because she is a part of the solution bringing employment into the community. Showing our little Black and brown kids who they can become, Smith hopes the HNB model will be replicated across the country in underserved communities.
“We want people to see vibrant minority-owned businesses thriving and serving their community,” said Smith.
Ashley Winters is The St. Louis American Report for America reporter.