Savvy students impress judges at Ford HBCU Business Classic: Texas Southern University takes home grand prize

Black Issues in Higher Education, May 19, 2005 by Cassie Chew

WASHINGTON

The old adage that good things come to those who wait proved true for the team from Texas Southern University--the last of five from historically Black colleges and universities to present their business ventures to a panel of distinguished entrepreneurs last month as finalists in Ford Motor Co.'s first HBCU Business Classic. The competition awarded a total of $100,000 to the top three business ventures proposed by the student-teams.

The TSU team earned the confidence of entrepreneurs like David Bing when they presented a financial analysis that predicted that KTOJ Environment Inc., their proposed oil recycling business, would earn a 45 percent profit on $2.5 million in sales in its first year.

"I would invest in your company today," said Bing, chairman and CEO of the Bing Group, a Detroit-based automotive supplier, during the robust question-and-answer period following the presentation. "But I want to know, what do you have at risk?"

"We each are investing $10,000 of our own money into the business," replied Kerry-Ann Fraser, the company's future chief financial officer.

When questioned how the firm would secure enough business to create such a phenomenal first-year return, not to mention the subsequent years of profitability indicated in the team's growth projection analysis, the company's chief executive, Tiffney Bell said, "We may not get the primary contract, but by being a minority--and woman-owned business, we will take home the subcontract."

It was that practical and insightful recognition of their unique position within the industry, combined with their strong financial and market research, that convinced the judges.

The team, made up of Bell, Fraser, Tosin Aribisala and Jennifer Wuisan took home the grand prize: $35,000 in scholarships with an additional $15,000 going to Texas Southern.

But for the winning team the business plan is not just a project.

"This summer we plan to purchase trucks to be used to transmit the used oil to recycling facilities," Fraser says.

The team plans to launch their company as interest grows in the Environmental Protection Agency's campaign to promote oil recycling in reusing natural materials.

"Oil doesn't get old," said Bell during the presentation. "It just gets dirty."

The competition required students to submit a 10-page business plan that included specifics on the type of business, its products and services, pricing, target market and general operations. The finalists were judged on their presentation, potential for success and the proposed venture's benefit to the community.

The other competing universities included Florida A&M University, North Carolina A&T State University, Howard University and Xavier University of Louisiana. The FAMU team took home first place honors, as well as $20,000 in scholarships and $10,000 for the university for AWR Services, their proposed management consulting and advisory services firm for African-American businesses. N.C. A&T State's team walked away with second place and $10,000 in scholarships and $5,000 for the university for their proposed Community Publishing Services, a firm that would specialize in producing and marketing Web-publishing and communication software. Howard University physical therapy major Alicia P. Jackson was also a finalist for developing JC Attire, a contemporary fashion line designed to promote positive messages. And Xavier University of Louisiana's team was also recognized for their Truly Divine Realty concept, a real estate firm designed to educate, empower and increase the homeownership rate in New Orleans.

Dr. Louis C. Mancuso, Xavier's Hilton-Endowed Chair of Entrepreneurship and advisor to the Xavier team, says that his students will continue working on their idea.

"I don't know if the people at Ford truly realize the impact on these students," Mancuso says. "When you get students turned on to this, there is no stopping them."

More than 400 submissions from approximately 80 HBCUs were submitted to the competition. The students traveled from their campuses to present their business plans at the National Association For Equal Opportunity in Higher Education's annual leadership conference last month in Washington. NAFEO, whose memberships include HBCUs, represents the legislative interests of historically Black colleges and universities.

Said Earl "Butch" Graves Jr., president and CEO of Earl G. Graves Publishing Co. after making his final deliberations on the winners, "All of the ideas are viable."

In addition to Bing and Graves, judges at the Ford HBCU Business Classic included Diane Weathers, former editor-in-chief of Essence magazine; Mark Scoggins, president of business development at Magic Johnson Enterprise; George C. Frasier, president of FrasierNet; and Renee Cotrell-Brown, executive vice president of Pro-Line International. Earvin "Magic" Johnson, the president and CEO of Johnson Development Corp., served as a special advisor to the competition.