Opinion: There’s a dearth of minority-owned businesses in State College. A proposed program could help
A quick Google search for women-owned businesses in State College yields a handful of results, some highlighting the most recognizable names like Webster’s Bookstore Cafe and The Makery. However, when you switch the search to small businesses owned by African Americans in State College, a few show up: The Pregame Barbershop, The Lasting Look and Waely Drop. Perhaps some well established locals could add a few names to this list of women and minority-owned businesses, such as Black2Reality. Nonetheless, our community’s overall lack of awareness of their existence — or more so the lack of these businesses altogether — speaks volumes.
Recently, Divine had the opportunity to talk with a group of young Black professionals connected to Penn State in some regard. During the course of this discussion, two themes emerged at the forefront: 1) The social/dating scene for those 25 and older is horrendous; and 2) Minority-owned businesses (especially shops that cater to women) are essentially non-existent.
When the group was asked about the likelihood of planting roots in State College, there was one resounding response: Absolutely not! Clearly, the lack of variety among the places in which we eat, shop and socialize hurts our community’s ability to attract and retain a diverse population. These young professionals, recruited by the university as either employees or graduate students, cannot envision ever calling State College (or anywhere in Centre County) home because they are not represented in the basic composition of our town.
In the last two years, we have seen a significant increase in State College business closures. While these vacant storefronts stand as unhappy reminders of the ruin wrought by COVID, they also represent future prospects — the chance to build and support the start of new ventures that will positively impact this community and enrich the fabric of our town. This is an opportunity to empower new business owners from that diverse talent pool to do business here and stay here.
However, the biggest barrier for new business owners here is the often extremely overpriced rent that is associated with most of the vacant retail spaces in our downtown. When you consider some recent research that indicates that it takes an average of two years for a new small business to actually turn a profit, the thought of taking on an exorbitant rent is daunting enough to discourage many from trying. As a responsible local government dedicated to the principles of fairness in opportunity and enriching diversity, we have an obligation to help new business owners that are risking a great deal to open a business here.
That’s why we propose the establishment of a new program in the Borough of State College that would help new business owners from diverse and underrepresented backgrounds by providing them substantial rent relief, proportional to the overall rent price, for the first two years of their time here. At full capacity, it would cost less than $200,000 per year and there is certainly room in future budgets for this. The Department of Diversity, Equity and Inclusion already has $40,000 budgeted in it for “special projects,” and we can point to many areas of areas of over budgeting and under-spending, which if cut would make room for this necessary program.