Economic Development Now

By Robin Gloss, IEDC intern

The latest webinar in IEDC’s Take Action Against Racism in Economic Development series highlighted the important role that historically black colleges and universities (HBCUs) play in supporting their students and the communities where they are located. The webinar featured professors and administrators from four of the country’s 101 HBCUs.

Most HBCUs were established between 1865 and 1900 with the goal of providing education to Black Americans who could not attend predominantly white institutions. These colleges and universities continue to provide unique educational opportunities for Black, low-income, and first-generation college students, and many are also working to expand and strengthen their graduate programs. HBCUs enroll nearly 300,000 students, 80 percent of whom are Black and 70 percent of whom are low-income.

HBCUs, unlike most other institutions of higher education, place a strong emphasis on affirming their students and supporting their social and emotional needs. This focused support builds a student’s confidence and contributes to the success of HBCU graduates in the workforce. Because many students are low-income and first-generation college students, it is especially important that these institutions are able to meet their needs outside of the classroom. Recognizing and overcoming the barriers that students face is a key aspect of increasing educational quality and graduation rates. This social and emotional support is even more important during the pandemic because many students rely heavily on the resources available on campus and through the university.

HBCUs focus on workforce preparedness by developing mentorship programs that connect students to individuals, organizations, and internships that support their professional development. Programs like Delaware State University’s Economic Development and Leadership Institute provide students with practical and theoretical skills while also building their leadership skills. Combined with the social support they receive, professional development programs equip students with skills necessary to succeed as entrepreneurs and in the workforce.

By partnering with local organizations and companies, HBCUs are able to create pipelines from college to the workforce and focus on developing skills for industries that are important to the local economy. By tailoring curricula to the unique needs of the local economy, HBCUs can ensure that graduates are well positioned to fill gaps in the local workforce. These partnerships are often supported by the EDA's University Center Economic Development Program, which helps universities leverage their assets and human capital to support local economic development.

As much as HBCUs benefit their students, they also have a significant impact in their communities. Every dollar spent by an HBCU translates to an additional $1.44 spent in the local or regional economy, and the total annual impact of their spending is more than $14 billion and more than 134,000 jobs. Because of this impact, companies looking to invest or locate in disinvested communities should recognize the influence that HBCUs have as anchor institutions and capitalize on the ability of HBCUs to strengthen the communities where they are located.