Creating an interface

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Creating an interface

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Aiding entrepreneurial success via critical pedagogy and insights from African-American management history Leon C. Prieto

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College of Business, Clayton State University, Morrow, Georgia, USA, and University of Stellenbosch Business School, Bellville, South Africa

Simone T.A. Phipps School of Business, Middle Georgia State University, Macon, Georgia, USA

John K. Osiri College of Business Administration, University of Nebraska-Lincoln, Lincoln, Nebraska, USA, and

John F. LeCounte Department of Educational Administration and Human Resource Development, Texas A&M University, College Station, Texas, USA

Abstract Purpose – This paper, via the use of management and entrepreneurial philosophies from Charles Clinton Spaulding, aims to advocate the integration of African-American Entrepreneurship and Management History into the business curriculum at historically black colleges and universities (HBCUs) as well as predominantly white institutions (PWIs). Along with this curriculum update, the use of critical pedagogy as a form of critical thinking is also recommended to complement the learning process.

Design/methodology/approach – Articles from early and recent newspapers, magazines, journals and books were examined and synthesised to clarify how curriculum modification and critical pedagogy could aid in increased entrepreneurial success.

Findings – The paper concludes with a framework that demonstrates the curriculum interface, including Spaulding’s insights and critical pedagogy, to connect black students to entrepreneurial success.

Originality/value – Although African-Americans surpass Caucasian-Americans in entrepreneurial attempts, blacks lag behind whites in entrepreneurial success. A reason for their higher failure rate is a lack of exposure to positive images who are also black. Integrating African-American Entrepreneurship and Management History into the business curriculum will help ensure that these positive images are sufficiently introduced and explored as a source of learning. Critical pedagogy is also endorsed as a complementary strategy to aid learning, as it is associated with processes that deviate from traditional instruction that often ignores student diversity, to facilitate the expansion of the mind as well as social transformation.

Keywords Management history, C.C. Spaulding, Critical pedagogy Paper type General review

Introduction A study conducted by Kollinger and Minniti (2006) found that African-Americans were more likely to try starting a business than whites. It also found that blacks possessed aboveaverage levels of confidence and optimism (as compared to other groups) which are

Journal of Management History Vol. 23 No. 4, 2017 pp. 489-506 © Emerald Publishing Limited 1751-1348 DOI 10.1108/JMH-04-2017-0016

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associated with higher rates of early-stage entrepreneurship. However, what was troubling was that their results showed that African-Americans are significantly less likely than white Americans to own an established business that survives in the market beyond the initial start-up process. Their findings suggested that black entrepreneurs are more likely to fail than whites in the early stages of the entrepreneurial process (Kollinger and Minniti, 2006). Other studies also showed that African-American entrepreneurs tend to have less success than their white counterparts (Fairlie, 1999; Robb, 2002). This may be due to the fact that black communities more frequently lack a framework to create successful entrepreneurial role models (Rhodes and Butler, 2004). The value of modelled behaviour and exposure to positive images is a significant contributor to one’s success (Lindsay, 2011); the lack of African-American traditions in business knowledge hinders intergenerational transference in business ownership (Robb, 2002). This is one of the reasons why AfricanAmerican Entrepreneurship and Management History needs to be integrated into the business curriculum at tertiary institutions, whether they are historically black colleges and universities (HBCUs) or predominantly white institutions (PWIs), to provide examples of successful black business pioneers to motivate and increase the entrepreneurial knowledge and self-efficacy of students of colour. A current example is Harvard Business School (HBS). There is a new MBA course offered by HBS and taught by professor Steve Rogers entitled “Black Business Leaders and Entrepreneurs”. In a Washington Post article, Professor Rogers stated: [. . .] we have a curriculum that is not inclusive. We’re like a doughnut with a big hole in the middle – the absence of black men and women who have had business success [. . .]. the hidden figures who have been ignored (Jan, 2017).

Professor Rogers also mentioned that: [. . .] this is bigger than just the black students, our non-black students need to see black brilliance as well, to counter the narrative out there that the only things black people can do is to entertain and play sports (Jan, 2017).

Cummings and Bridgman (2016) asserted that greater diversity of perspective can encourage greater innovation, and suggested that a limited, homogenous, monocultural, “potted” view of the past may constrain perspectives of what we take management to be about in the present, and subsequently, could be limiting future development. Creativity and innovation play a crucial role in entrepreneurship, and the inclusion of the AfricanAmerican entrepreneurship and management history in the business curriculum would create a necessary interface, or connection, that would expose another perspective and enable black students to more clearly glean the intricacies of entrepreneurship, as they may better relate to the subjects. This additional historical narrative would contribute not only to the entrepreneurial self-efficacy of students of colour, but also to their entrepreneurial knowledge, skills and abilities, so that their critical and creative thought, as well as their confidence and optimism can be strengthened by a more solid awareness and understanding of entrepreneurship in the African-American context. In addition, a need for achievement is positively associated with academic achievement (Paunonen and Ashton, 2001; Tella, 2007), and both achievement need and academic achievement are linked to entrepreneurial potential and success (Collins et al., 2004; Robinson and Sexton, 1994; Winter, 2010; Zeffane, 2013). Allen (1992) found that black students attending historically black colleges and universities were reported as having better relationships with professors, greater social involvement, higher occupational aspirations and higher academic achievement than black students attending predominantly

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white colleges and universities. On predominantly white campuses, black students emphasize feelings of alienation, sensed hostility, racial discrimination and lack of integration, whereas at HBCUs, black students emphasize feelings of engagement, connection, acceptance and extensive support and encouragement (Allen, 1992). This means that black students respond to and are influenced by their environmental perceptions. Allen (1992) asserted that they develop best in supportive environments where they feel valued, protected, accepted and socially connected, and HBCUs better communicate to black students that it is safe to take the risks associated with intellectual growth and development. At a PWI, a business curriculum that includes African-American management and entrepreneurship history would help facilitate connection, assist in promoting engagement and play a role in bolstering a need for achievement as well as increasing academic achievement as students would not feel as alienated. Instead, they would have more focus as they feel included due to a curriculum that recognizes the contributory value of their history, and uses it to enable learning. At an HBCU, the connection would be further strengthened, and engagement heightened, again resulting in higher achievement need and academic achievement. In both types of institutions, black students would be inspired by the African-American business thought leaders, managers and entrepreneurs of yesteryear and aim to be successful like them, and this motivation would serve them well academically and entrepreneurially. In the field of entrepreneurship and management, there is a paucity of research that focuses on the historical contributions of people of colour. The authors of this paper recently unearthed some thought leadership from Charles Clinton Spaulding (1874-1952), late President of the North Carolina Mutual and Life Insurance Company (the NC Mutual), that demonstrated that he had his own philosophies that may have played a role in helping African-Americans effectively launch and manage their businesses. There is merit in drawing attention to the works of minorities in the field of entrepreneurship and management to paint a more complete picture of the individuals whose contributions laid the foundation, and to demonstrate that these lessons can still be used in contemporary times. What makes Spaulding’s contributions important is his understanding of ways in which firms can use a more strategic approach to achieve business success. The thought leadership of Spaulding proved that African-Americans used sophisticated methods in managing their enterprises that are still relevant today. The works of Spaulding never went mainstream and his primary audience were African-Americans in the early twentieth century. His mission was to help as many black entrepreneurs and executives with his writings to help them prove that they too could be as successful as their white counterparts. This paper is significant for two main reasons. First, it showcases the thought leadership within two of Spaulding’s articles, namely, “Administration of Big Business” and “Business in Negro Durham”, in which he provided much-needed management and entrepreneurial insight to the black community, demonstrating that Spaulding, like his white contemporaries, contributed to the philosophical and practical foundational knowledge that is still applicable today for entrepreneurs and executives who strive to establish and sustain successful firms. Second, it acknowledges the need and provides the rationale for management educators to create a necessary interface to positively influence AfricanAmerican entrepreneurial success, by integrating African-American management and entrepreneurship history into the business curriculum as well as utilising critical pedagogy as a method to increase the entrepreneurial knowledge and self-efficacy of black college students. The integration of African-American entrepreneurship and management history into the curriculum will help build the connection to motivate engagement and learning, and

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communicate to black students that they too can be successful in building and managing an enterprise that survives and thrives despite the challenges faced by people of colour. In addition, the utilisation of critical pedagogy will allow these students to employ critical thinking and analysis as they reflect on business principles in general, and management and entrepreneurship practices in particular, and ultimately, find ways to make a profit and make a difference in their communities, just as historic African-American business leaders (such as C.C. Spaulding) did in the late nineteenth century and early twentieth century. Charles Clinton Spaulding C.C. Spaulding was born 1 of 14 children in Columbus County, NC, in 1874, 10 years after the emancipation of slaves (Spaulding, 1948). Spaulding grew up on his father’s farm in a puritanical environment of early risers who took pride in the crops and land. In 1898, he became the manager of a cooperative black grocery store (Weare, 1973). His work ethic and enthusiasm for his job so impressed Mr John Merrick and Dr Aaron M. Moore (founders of the NC Mutual) that they turned to the 26-year-old Spaulding to reorganise the NC Mutual, and with that, the Merrick–Moore–Spaulding triumvirate was born (Weare, 1973). From 1900 until his death in 1952, Charles Clinton Spaulding managed the North Carolina Mutual Life Insurance Company which was known back then as America’s largest black business (Weare, 1981). During his lifetime, he served as the president of a very successful life insurance company, a trustee at various universities and chairman of the board of a large hospital, and he was invited to conferences at the White House (Spaulding, 1951). By the 1940’s, Spaulding emerged as a media figure in the USA. Articles were written about him in various outlets such as the Saturday Evening Post, Ebony and Reader’s Digest. His fame even spread to West Africa and he often received mail from young people asking for help to pay for college tuition in the USA (namely, at Howard University, where he served as a trustee) and then to provide employment for them at the Mutual (Weare, 1981). He also regularly wrote articles sharing his business wisdom in various outlets such as the Pittsburgh Courier, the Southern Workman and The Messenger (Prieto and Phipps, 2016). It is important to note that the authors of this paper are not advocating the incorporation of African-American management and entrepreneurship history in the business curriculum simply for the sake of integration, but because this content is important and deserves to be included. Spaulding was a business thought leader, and his management and entrepreneurship philosophies provided much-needed advice to African-American entrepreneurs and executives in the early twentieth century. In addition, although his writings are presently not very well known, many of them actually preceded renowned management pioneers and gurus like Henri Fayol and Chester Barnard, and reflected principles we still endorse today in management and entrepreneurship (Prieto and Phipps, 2016). These principles are acknowledged as having helped shape entrepreneurship and management thought and practice, so Spaulding’s work should be included in the business curriculum at both HBCUs and PWIs, as students at these institutions can still learn from his insight, which is still relevant in contemporary times. Business students can benefit from his knowledge as they reflect on what attributes and resources they need to launch and successfully manage their businesses. The next section will examine the business impact of C.C. Spaulding. The Impact of Charles Clinton Spaulding C.C Spaulding is recognized by the Harvard Business School as a great American business leader (Harvard Business School, 2017). This recognition by the world’s pre-eminent business school speaks volumes about the influence of this pioneering American

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businessperson. It is unfortunate that his accomplishments have largely been forgotten, but thankfully, mainstream management textbooks such as MGMT by Chuck Williams and Essentials of Management by Andrew DuBrin are now including the thought leadership of Spaulding in newer editions, and are thus playing a role in sharing his work with a new generation of university students who are not familiar with the contributions of this unsung business icon and countless other black business pioneers in the early twentieth century. The impact of C.C. Spaulding on the black community was profound in the 52 years he managed the North Carolina Mutual. During his time at the helm of the company, he had the reputation of being America’s leading black businessperson (Weare, 1973; Walker, 1998). He directed not only North Carolina Mutual but also an extended family of financial institutions, including Mechanics and Farmers Bank, Bankers Fire Insurance Company and Mutual Savings and Loan Association (Weare, 1973). He helped grow these companies and he did this by hiring a diverse staff of employees including women and Caucasians (Prieto and Phipps, 2016). Spaulding also positively impacted the city of Durham and the greater black community. This is demonstrated by the substantial funds he made available for various worthy causes such as the Lincoln Hospital, North Carolina Central Hospital, a library and local churches (Kranz, 2004). In 1924, he established the National Negro Finance Corporation in Durham, NC, and its mission was to loan money to African-Americans to start enterprises and to strengthen businesses that were already in existence (Walker, 1998). According to Walker (1998), “by 1930, Spaulding, at the helm of the world’s largest black business, possessed the power and recognition that Booker T. Washington had enjoyed a generation earlier”. What was also remarkable about Spaulding other than his business acumen and philanthropy was his willingness to share business advice to the masses. His articles provided entrepreneurship and management thought leadership to African-Americans during a time when opportunities were not readily available to people of colour during the Jim Crow period of the USA. Spaulding never attended college; however, he became an unofficial business professor due to his writings, which were often featured in the leading black newspapers and periodicals. When Spaulding passed away in 1952, his funeral was said to be the largest ever in Durham, and it was attended by approximately 3,000 individuals. E.J. Evans, the mayor of Durham, issued a proclamation and declared the day of Spaulding’s funeral to be a day of respect to the memory and works of the business leader (Ingham, 1994). In 1980, Spaulding became the first African-American to be inducted into the National Business Hall of Fame (Ingham, 1994). The impact of Spaulding to the business landscape of the USA was momentous, and his contributions should be remembered. His offerings as regards management and entrepreneurial philosophies were (and still are) also noteworthy. The next section will look at Spaulding’s seminal work entitled “The Administration of Big Business”, which was published in 1927, and outlined his eight fundamental necessities of management. The section afterward will explore another seminal work of Spaulding entitled “Business in Negro Durham”, which was published in 1937. That article delineated his four cardinal points of entrepreneurship and provided advice to potential black entrepreneurs. Spaulding’s administration of big business In an earlier paper, Prieto and Phipps (2016) examined Spaulding’s eight fundamental necessities of management in great detail, but for the purpose of this article, a more concise synopsis has been outlined as follows.

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Necessity 1: Cooperation and teamwork Spaulding wrote: If I were asked to name the one fundamental necessity in the administration of big business I would answer immediately that a thorough-going cooperation is essential on the part of the executives in the development of big business.

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Spaulding felt that firms should strive to create and sustain a team-based culture that is focused on the success of the organisation. He also felt it was necessary for management to work together in a cohesive manner for the benefit of the organisation (Spaulding, 1927a; Prieto and Phipps, 2016). Necessity 2: authority and responsibility Spaulding stated that: There must always be some responsible executive who must pass upon every issue that is fundamental; he must be the final authority from whom there is no appeal except to the entire group in conference.

Spaulding’s views on authority and responsibility are similar to today’s sentiment that there needs to be accountability among all managers and employees to ensure performance (Spaulding, 1927a; Prieto and Phipps, 2016). Necessity 3: division of Labour Spaulding stated that: [. . .] large scale business is operated on the principle of the division of labor. Departmental divisions function separately under the direction of experts who may or may not be executive officers.

Spaulding’s conceptualization of the division of labour is aligned with what is practiced today by virtually most organisations to some degree. He understood that this concept plays a role in increasing the efficiency and effectiveness of a firm (Spaulding, 1927b; Prieto and Phipps, 2016). Necessity 4: adequate manpower Spaulding stated that: [. . .] the greatest drawback in the administration of big business is the lack of manpower. First and foremost success in business depends upon adequate manpower. Our schools are turning out only partially trained young people with no business experience whatsoever, and while many of them are good technicians they are for the most part helpless in their new jobs because there is little correlation between the classroom and the business office.

Spaulding’s statement reflects his recognition of a need for sufficient quantity and quality of human resources and thus, a need for a reliable system to facilitate the acquisition and training of the best employees, so that organisational performance could be maximised (Spaulding, 1927b; Prieto and Phipps, 2016). Necessity 5: adequate capital According to Spaulding: Initial capital must not only be sufficient to commence operations, but must be sustaining over a given period which, in the experience of similar enterprises is essential [. . .]. Even large scale

corporations frequently dissipate their surplus earnings in hurried dividends instead of reinvesting the surplus for the extension of the business.

Spaulding’s mention of the importance of maintaining adequate capital and the benefit of re-investing profits reflects his understanding of effective strategic management techniques, including the shrewd organisation of resources (Spaulding, 1927b; Prieto and Phipps, 2016).

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495 Necessity 6: feasibility analysis Spaulding noted that another error made by entrepreneurs and executives: [. . .] is a lack of knowledge of the needs and resources of the territory [. . .]. Frequently it happens that as soon as one person or group appears successful in a given line another person or group organizes a new enterprise in the same line without ascertaining the advisability of such a move, as reflected in the needs and resources of the community.

Spaulding felt that executives and entrepreneurs should engage in effective planning by conducting a feasibility analysis to assess the needs of the market and to gauge the viability of the new venture as regards earning income and gaining market share (Spaulding, 1927b; Prieto and Phipps, 2016). Necessity 7: advertising budget Spaulding wrote that: [. . .] when it comes to advertising, a large number of our organisations are depriving themselves of the most effective means of propagation. In travelling about the country I have noted a large number of enterprises engaged in the manufacture of products. Very few of these have an annual appropriation for advertisement.

Spaulding believed that companies, especially small businesses, need to allocate a budget geared towards promotion to facilitate business awareness, survival and growth. His advice concerning budgeting is also integral to the planning process (Spaulding, 1927b; Prieto and Phipps, 2016). Necessity 8: conflict resolution Spaulding asserted that [. . .] the problem of contact is the chief problem of human intercourse. Personal contact and business contact, if not properly directed and if not based on mutual goodwill and intelligence derived from a common sense education, will develop personal conflict and business conflict instead of personal cooperation and business cooperation.

Spaulding understood that in business, human interaction is typically inevitable and could result in conflict, and he believed in cooperation and mutual goodwill as a means to reduce conflict in an organisation (Spaulding, 1927b; Prieto and Phipps, 2016). Spaulding’s four cardinal points of entrepreneurship In his 1937 article entitled “Business in Negro Durham”, which was published in the Southern Workman, Spaulding stated that there were four cardinal points that are essential in running any business. These cardinal points included: (1) character; (2) fundamental business principles;

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cash or its equivalent; and social service in business.

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John Merrick and A. M. Moore had character. It was not accidental that they were honest and courteous and courageous. Their characters supplemented each other. They were willing to work hard, to make sacrifices, and to shoulder responsibilities (Spaulding, 1937).

These were the words Spaulding penned as he reflected upon the factors that contributed to the success of black businesses and start-ups in Durham, which was a citadel of business excellence for people of colour at the time. Spaulding captured the notion of business ethics, which only appeared in academic writing in the early 1970s (De George, 2015). Spaulding articulated that character goes beyond virtues, such as honesty, to include courteousness. This is an idea which aligns with recent works in the field that extends ethics to include self-awareness as well as the rationality to ensure that one’s virtues are devoid of vices (Hartman, 1998). Spaulding also goes further to allude that possessing these virtues is insufficient to contribute to a successful venture. He maintained that one must also have the courage to live out those virtues. Today, researchers continue to underscore the importance of developing character in young leaders by modelling behaviours that are worthy of emulation (Crossan et al., 2013; Sarros and Santora, 2001). Modelling good character was indeed very central to Spaulding who persevered with his co-founders even when they did not receive support from community members during the early days of their enterprise. He believed that character ought to be demonstrated to others so that they could witness the behaviours and be encouraged. Spaulding saw character as a tool the entrepreneur could use to influence various stakeholders, making it a vital part of entrepreneurial leadership. Additionally, Spaulding believed that exemplary leadership could win over critics. Therefore, he felt it essential that the entrepreneur work hard and make sacrifices. One concrete way in which Spaulding and his co-founders exhibited character in the early stages of their insurance business was by paying their employees first and not drawing salaries for themselves unless business was in order. Spaulding advised that the entrepreneurs who display high levels of responsibility and dedication to their employees in the early stages of business tend to succeed. Indeed, self-sacrificing leaders are more effective than their nonself-sacrificing counterparts (Van Knippenberg and Van Knippenberg, 2005). It is necessary to emphasise the importance of having character to PWI and HBCU business students because there is sometimes a tendency for the media to glamorise the “Gordon Gekkos” and the “Wolves of Wall street”. Students need to understand that ethical businesses tend to be the ones that are admired and supported by employees and customers alike. Cardinal point 2: Fundamental business principles According to Spaulding: General business principles are not enough unless they relate specifically to the type of business in which the person is engaged. Our only unsuccessful business venture was the Durham Textile Mill. Without adequate knowledge for the making of textiles, or a market for the disposal of same, we, nevertheless, organized the mill in 1914, but we knew well enough to sell it the next year (Spaulding, 1937).

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Spaulding’s fundamental business principles overlap with his eight fundamental necessities of managing a business to which he referred in his 1927 article entitled “The administration of big business”. Spaulding observed that it is paramount that would-be entrepreneurs understand key aspects of the business in which they wish to venture. By “fundamentals business principles”, he was also referring to having knowledge of the market and industry before launching a venture. It is no surprise that industry experience is strongly linked to entrepreneurial success (Bruderl et al., 1992). Industry experience includes having knowledge of the bargaining power of suppliers and the intensity of rivalry, and understanding other forces that affect the industry. Compared to their inexperienced counterparts, entrepreneurs who are knowledgeable of their industry are better strategists who can make sound decisions when confronted with challenges and changes. Not being well grounded in fundamental business principles can lead to involuntary exit. As research shows, the longer an entrepreneur can prevent involuntary exit, the more successful the entrepreneur (Van Praag, 2003). However, it takes industry experience to ward off involuntary exit. Spaulding and his partners experienced this first hand when they had to dispose of their Durham Textile Mill business just after one year of inception, because they realised they lacked the necessary industry knowledge to run the business profitably. The importance of possessing relevant industry experience holds true beyond the US context. It has been demonstrated in a cross-country study of American versus Croatian entrepreneurs that industry experience, among other factors, is an important predictor of entrepreneurial success (Lussier and Pfeifer, 2000). Students at PWIs and HBCUs can learn a great deal about this cardinal point from Spaulding’s writings, especially his cautionary tale of the textile mill sale. Students must grasp the value of ensuring that they gain an understanding of the market and industry for the business they are interested in. Sometimes, students may state, for example, that they want to open a restaurant or establish a fashion label, without having any experience, or even the slightest bit of knowledge pertaining to the key aspects of that particular field. Cardinal point 3: cash or its equivalent According to Spaulding: There must be cash or its equivalent. Yet, many businesses have failed because they had only cash [. . .] Our insurance company did not have capital in its beginning. No one received a salary. Mr Merrick and Dr Moore had other means of support. I was selected from a grocery store clerkship to solicit business for the infant company on a commission basis. The first office rent of $2.00 a month and the clerk hire at $10.00 per month created problems (Spaulding, 1937).

Spaulding addressed a central theme of entrepreneurship when he declared that there must be cash or its equivalent. In the text entitled “Unleashing your idea: steps to a successful start”, Osiri (2014) explained how entrepreneurial financing is not just about acquiring financial capital but extends to the acquisition of other forms of resources. By leveraging other forms of resources, which are needed for the survival of the venture, entrepreneurs can effectively reduce their financial capital and dependence on loans. This way of thinking reinforces the role of entrepreneurs as individuals who perceive and masterfully exploit opportunities. Other forms of capital are real (physical assets), social (networks and relationships) and human (talent within the organisation). For example, researchers have validated that recruiting and sustaining talent is a critical factor in entrepreneurship (Lussier and Pfeifer, 2000). Unfortunately, human resource management is a critical success factor that is often ignored in businesses, even though it is linked to competitive advantage and firm survival.

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Besides the aforementioned four forms of capital, the notion of “familiness” as a resource has been explored using the resource-based view, especially within the context of family business (Tokarczyk et al., 2007). One may argue that “familiness” overlaps with social capital. Nevertheless, the point is that Spaulding observed that entrepreneurs should think more broadly and not singularly focus on cash, and by doing so, Spaulding was invoking the resource-based view in entrepreneurship (Grant, 1991). The resource-based view suggests that the entrepreneur should be strategic and creative about acquiring and leveraging all forms of resources to successfully launch and sustain a new venture. One of the ways Spaulding and his partners attempted to minimise the resource requirement of their venture was an aforementioned practice that also showed their character; they avoided drawing salaries in the early stage of their insurance business. They were extremely conservative in the manner they managed their funds and ran their business. For example, instead of taking out loans and holding cash reserves for emergencies, these business partners rose to the occasion and contributed the funds necessary to settle their first insurance claims. Therefore, each founder was individually responsible and financially secure. Their relationships with one another formed an important social capital because the partners trusted that each person would not betray the partnership when the time arose to pull resources together to pay their first few claims. Students at both PWIs and HBCUs can learn from Spaulding’s writings as they gain knowledge and ideas about bootstrapping as a viable means to entrepreneurial success, just as Spaulding and his partners did in the late nineteenth century. Too much emphasis is sometimes placed on traditional methods of financing a business. This can be problematic because individuals, and especially people of colour, are often denied funding due to various factors such as lack of collateral or discrimination. Other techniques, including bootstrapping, should also be extensively examined, as they may help potential black entrepreneurs obtain the resources that they need to launch and successfully manage their enterprises. Cardinal point 4: Social service in business According to Spaulding: There must be social service in business. There has never been a time when my associates have not promoted the best interests of the community. In 1901 the Lincoln Hospital was founded at Durham by Dr A.M. Moore through the generosity of the Duke Family. The founder was its superintendent for twenty-two years. Two of the three Negro drugstores of Durham were the direct results of our business promoters. Then there is the Durham Colored Library, begun in 1913 largely through the efforts of Dr Moore and Mr Merrick. Successful businesses conducted by Negroes give inspiration to the people (Spaulding, 1937).

Spaulding was ahead of his time when it comes to social entrepreneurship and corporate social responsibility (CSR). Social entrepreneurship is the process of creating a new venture or exploiting opportunities with the aim of addressing social, cultural and environmental issues. Spaulding co-founded several companies and all his start-ups were founded with the purpose of helping the community, be it improving the conditions of African-Americans or strengthening race relations by creating safe work environments where blacks and whites collaborated. For example, one of the key motivating factors behind the founding of their insurance company was to create opportunities for black businesses to buy adequate insurance and bonds services. Social entrepreneurship was a core characteristic of all their business endeavours. In describing social service in business, Spaulding explained how he and his partners were not only entrepreneurs but also ensured that their businesses remained socially responsible to the community within which they operated. CSR refers to actions taken by

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firms that are designed to benefit the community at large. CSR can range from explicit business financial commitments and expenditure to a societal cause (e.g. a charitable donation) to incurring costs while changing a business or manufacturing process (e.g. reducing carbon emission). When a business organisation implements CSR, it considers its place as a “citizen” in the larger society, and thinks beyond short-term economic profit. In a historical exploration of CSR, a time period beginning in 1945 and ending in 2004 was selected, and it was revealed that the roots of CSR were planted much earlier (Center for Ethical Business Cultures, 2005). Spaulding may very well be one of the pioneers of CSR, both as a business thought leader and a practitioner. We know that entrepreneurs who incorporate CSR often outperform their counterparts who do not. A possible explanation is that they gain tremendous goodwill from customers and employees because their actions go beyond what is required for profit maximisation to contribute to social welfare (McWilliams, 2015). Additionally, investors view CSR positively, and like customers, gravitate toward socially responsible firms, as CSR can become a unique source of competitive advantage (McWilliams, 2015). Black students who intend to become entrepreneurs should be encouraged to conceptualise their businesses as social enterprises so they can make a profit and positively impact their communities. This strategy can increase the reputation of their businesses and may result in greater community support which may lead to higher levels of organizational success. Yes, general examples of social entrepreneurship and CSR may be provided to students, and these examples may sporadically include black executives, managers and entrepreneurs. However, it is crucial to integrate figures like Spaulding in the business curriculum at PWIs and HBCUs, so that students, and especially those of colour, may be aware of their contributions, inspired by their achievements, and gain valuable insight into practices like social entrepreneurship and CSR that influence organisational success. Spaulding’s eight fundamental necessities of management and four cardinal points of entrepreneurship reflect essential principles of both management and entrepreneurship that are taught in classrooms today. For example, some of Spaulding’s fundamental necessities are reminiscent of Fayol’s functions of management (Prieto and Phipps, 2016), and Spaulding’s cardinal points have commonalities with the five Cs of credit (i.e. character, capacity, capital, collateral and conditions) discussed in many entrepreneurship and small business management texts. These texts assert that when making loan or investment decisions, bankers or investors consider the entrepreneur’s character, capacity to repay (also known as cash flow), capital that he/she has invested in the venture and collateral available as security, as well as the conditions of the industry and economy because these factors are contributors to entrepreneurial success (Longenecker et al., 2012; Scarborough, 2013). Black students, including those with entrepreneurial intentions, and nascent black entrepreneurs would gain valuable insight about effective management and the creation and sustenance of entrepreneurial ventures from Spaulding’s writings, so the latter’s incorporation in the business curriculum would be useful. Along with this curriculum reform, critical pedagogy should be utilised as an instruction tool to empower black students, as they are allowed to learn in an environment where they are encouraged to challenge norms, use their experiences and discuss matters, as well as explore potential solutions to problems to which they can relate, because they and their communities are affected by them. The next section provides more detail about critical pedagogy. Critical pedagogy Paulo Freire, the Brazilian educator and influential scholar in the area of critical pedagogy, inspired educators throughout the world. He influenced scholars and practitioners alike

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through many of his works such as Pedagogy of the Oppressed, and his theory of education (Prieto et al., 2012). The work of Freire has continually been associated with the themes of liberation and oppression, and his critical pedagogy is visionary in its attempt to bring about social transformation (Freire, 1993; Jackson, 2007). Kincheloe (2008) describes critical pedagogy as a perspective towards education that is concerned with questions of justice, democracy and ethical claims, and he discloses that his notion of critical pedagogy combines these concerns with the effort to produce the most mind expanding, life changing education possible. One way to attempt to accomplish this feat is by somewhat deviating from the traditional, typical tutelage that dominates tertiary institutions as it often does not adapt to account for the diversity of students. According to Kincheloe (2008), in critical pedagogy, teachers must not only understand subject matter in a multidimensional and sophisticated manner, but must also be able, in diverse settings, to view such content from the vantage points of culturally and psychologically different students. In addition, students must be actively involved in the education process, as they have a key role to play. Kincheloe (2008) asserted that critical teachers maintain that students should study the world around them, in the process learning who they are, and what has shaped them. Students should also be offered the opportunity to have a voice in the educational process, to have the courage to be critical and questioning instead of passive and accepting and to work towards social change (Breunig, 2005). There is a fundamental problem in which the dominant culture actively functions to suppress the development of a critical historical consciousness among the populace (Giroux, 1997), and educational institutions are often no different. Schools act to perpetuate dominant ways of knowing (Breunig, 2005), as individuals are socialised and taught to view the dominant ideology as natural, commonsensical and inviolable (McLaren, 2016). Integrating African-American management and entrepreneurship history in the business curriculum at PWIs and HBCUs, and utilising critical pedagogy to stimulate thinking, would allow students, especially black students, to view another perspective and not only the dominant one. These students would be more informed, as they would have the opportunity to learn more about who they are, and the circumstances that have influenced them as managers, entrepreneurs and executives, as well as to question actions taken, and to make crucial decisions (business or otherwise) at the appropriate times that would positively change their lives, as well as lives in their community. Hardy and Tolhurst (2014) stated that one of the reasons that management education curriculum has been the subject of criticism is its Anglo-American ethnocentricity. Surely, if students should study the world around them, it should also be inclusive of their world. According to Reynolds (2009), critical management educators may want to ask which theoretical frameworks and perspectives are incorporated into the curriculum and which are left out. Presently, universities are not doing enough to prepare marginalised groups to challenge the status quo in the USA. Greenleaf (2002) pointed out that one of the flaws in the education system is that the current system does not prepare individuals for leadership, and does not encourage the poor to improve the communities in which they were raised, rather they are given goals to move into the areas of the upper class (Prieto et al., 2012). Black students need to learn more about socially conscious, black business pioneers like Spaulding who succeeded in spite of great difficulties facing people of colour, so they can have more business models that inspire them. Critical pedagogy can be used to prepare AfricanAmerican students to tap into their potential and find ways to create successful businesses and reduce unemployment in black communities. Consistent with a Freirian vision of education, universities need to embrace forms of teaching and learning that promote increased awareness and understanding of the ways in which social forces act on people’s

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lives to produce and reproduce inequalities (Rhoads, 2009). If this is done, black students would be better equipped and stand a better chance to solve problems and make a difference. University education needs to move beyond normalised conceptions of knowledge and truth and include counter and oppositional narratives for students to develop the kinds of critical questions necessary for confronting complex social and global realities (Rhoads, 2009). Likewise, universities need to prepare disenfranchised groups, including people of colour, to become managers and entrepreneurs who can make a positive difference in their communities. This can be done by creating an interface that uses the philosophies of Spaulding and other writings from African-American management and entrepreneurship history, as well as using critical pedagogy, so black students can more effectively learn to achieve business success. A conceptual model is provided in Figure 1, demonstrating how the business curriculum can serve as an interface, which includes critical pedagogy, Spaulding’s core management and entrepreneurship principles, and philosophies from other African-American managers, entrepreneurs and executives in history, to reach black students at PWIs and HBCUs and to positively influence entrepreneurial outcomes for them. This more inclusive business curriculum would be a beneficial interface, as it would enable a stronger connection to black students, enabling them to learn about and critically reflect on some relevant practices of

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Figure 1. Curriculum interface connecting black students to entrepreneurial success

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individuals to whom they can better relate. This interface would not only be educational but also motivational, inspiring black students to engage in entrepreneurial behaviour that reflects what they have learned in the curriculum, which would lead to a more positive reputation, greater community support and higher levels of entrepreneurial success. Implications and future inquiry Critical pedagogy supports more comprehensive, analytical reflection, as well as transformative action. These elements are useful in business in general, and management and entrepreneurship in particular, because such domains require sound and often creative decision-making and problem-solving that would lead to positive organisational and societal outcomes. However, despite the benefits of critical pedagogy, the latter does have its criticisms. Ellsworth (1989) castigated critical pedagogy for definitions which operate at a high level of abstraction, and alluded that it results in some diversities being silenced in the name of “liberatory” pedagogy, noting that some individuals find it difficult to have a united voice with other marginalised individuals when it means the relegation or demotion of their particular repression. For example, Asian American women found it difficult to join voices with other students of colour when it meant subordinating their specific oppressions as Asian Americans; women found it difficult to prioritise expressions of racial privilege and oppression when such prioritising threatened to perpetuate their gender oppression (Ellsworth, 1989). As a human being, it is only natural to have multiple identities that reflect gender, race, ethnicity, religion, nationality and a number of other characterisations, and on some occasions, one may find the need to prioritise which identity takes precedence depending on the context or situation. Thus, there may be some passionate debate over the fairness of the criticism of critical pedagogy aiding in the silencing of diversities. However, the construct can benefit from further research conducted to make it less abstract in nature. The development or refinement of a more detailed theory as well as the delineation of specific classroom practices are recommended. As regards the integration of African-American management and entrepreneurship history in the business curriculum, additional research is needed to unearth other black entrepreneurs, managers, executives and management thought leaders. Their philosophies and theories, although lost in history, do exist, and must be brought to the forefront. Christian (1987) asserted that the literature of people who are not in power has always been in danger of extinction or co-optation, not because they do not theorise, but because what they can even imagine, far less who they can reach, is constantly limited by societal structures. Black business thought leadership should not be ignored because it is not dominant according to societal structures, which include educational institutions. Instead, it should be incorporated into the curriculum at PWIs and HBCUs so that it can reach students, especially black students. These writings may more effectively communicate concepts, considerations and strategies that should be taken into account when blacks are building and managing a successful business that is likely to survive, as there may be subtle and not so subtle differences pertaining to black entrepreneurship. For example, Meyer (1990) examined several differences including low assets, liquidity constraints, discrimination in lending and consumer discrimination. Exposure to successful black entrepreneurial and managerial figures, as well as their philosophies, traditions and tactics, would enlighten students about ways to navigate challenges specific to them. If they have more examples of successful black entrepreneurs and managers, as well as management thought leaders from both early and more recent history, they can benefit from more entrepreneurial role models and learn

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vicariously through them. This would help bridge the gap in entrepreneurial success between blacks and whites. Also, further inquiry into reasons for black entrepreneurial failure is needed so other roots of the problem can be addressed. Finally, it should be noted that the inclusion of African-American management and entrepreneurship history would not only benefit Black students. All students benefit from learning about others, and can use this knowledge before and after graduation, as they build and maintain relationships with diverse individuals and groups, and make better decisions as managers and entrepreneurs who strive to positively influence their organisations, communities and society at large. Gurin, Nagda, and Lopez (2004) found that diversity experiences (e.g. interaction with diverse students) through curricular and co-curricular activities in higher education positively impact democratic citizenship, enabling students to better participate in a heterogeneous and complex society. Diversity experiences, including participation in multicultural programs, should not be minimised to engagement in activities with diverse others only, but should also extend to diversity of content studied within the curriculum. In this way, all students would be more aware of organisational and societal complexities, and would better learn the skills needed to be successful and make a difference. Conclusion Something must be done to address the high failure rates of black businesses, and Cummings and Bridgman’s (2016) call for greater diversity in management education and the rethinking of how management history is relayed holds much merit as one means of addressing the problem. Creating an interface that integrates black entrepreneurship and management history into the curriculum at HBCU’s and PWIs can play a role in increasing the entrepreneurial knowledge, self-efficacy and motivation of the students if critical pedagogy is also used. Students can benefit from learning about the principles and practices of successful black business pioneers such as C.C. Spaulding, who saw the problems facing the black community and decided to focus on turning them into opportunities to make a profit and a positive difference, despite the seemingly unsurmountable challenges faced. The business philosophies of Spaulding are still relevant today, and the merits of critical pedagogy warrant its application to facilitate student empowerment through a more comprehensive and diverse learning experience that enables them to engage in creative and critical thinking as well as analytical reflection that promotes problem solving, innovation, entrepreneurial success as well as positive social transformation. References Allen, W.R. (1992), “The color of success: African-American college student outcomes at predominantly white and historically black public colleges and universities”, Harvard Educational Review, Vol. 62 No. 1, pp. 26-44. Breunig, M. (2005), “Turning experiential education and critical pedagogy theory into praxis”, Journal of Experiential Education, Vol. 28 No. 2, pp. 106-122. Bruderl, J., Preisendorfer, P. and Ziegler, R. (1992), “Survival chances of newly founded business organizations”, American Sociological Review, Vol. 57 No. 2, pp. 227-242. Christian, B. (1987), “The race for theory”, Cultural Critique, Vol. 6, pp. 51-63. Collins, C.J., Hanges, P.J. and Locke, E.A. (2004), “The relationship of achievement motivation to entrepreneurial behavior: a meta-analysis”, Human Performance, Vol. 17 No. 1, pp. 95-117.

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Center for Ethical Business Cultures (2005), “Corporate social responsibility: the shape of a history”, working paper, available at: www.cebcglobal.org/wp-content/uploads/2015/02/CSR-The_ Shape_of_a_History.pdf (accessed 1 December 2016). Crossan, M., Mazutis, D., Seijts, G. and Gandz, J. (2013), “Developing leadership character in business programs”, Academy of Management Learning & Education, Vol. 12 No. 2, pp. 285-305. Cummings, S. and Bridgman, T. (2016), “The limits and possibilities of history: how a wider, deeper, and more engaged understanding of business history can foster innovative thinking”, Academy of Management Learning and Education, Vol. 15 No. 2, pp. 250-267. De George, R.T. (2015), “A history of business ethics”, available at: www.scu.edu/ethics/focus-areas/ business-ethics/resources/a-history-of-business-ethics/ (accessed 17 November 2016). Ellsworth, E. (1989), “Why doesn’t this feel empowering? Working through the repressive myths of critical pedagogy”, Harvard Educational Review, Vol. 59 No. 3, pp. 297-324. Fairlie, R.W. (1999), “The absence of the African-American owned business: an analysis of the dynamics of self-employment”, Journal of Labor Economics, Vol. 17 No. 1, pp. 80-108. Freire, P. (1993), Pedagogy of the Oppressed, The Continuum Publishing Company, New York, NY. Giroux, H.A. (1997), Pedagogy and the Politics of Hope: Theory, culture, and schooling: A Critical Reader, Westview Press, Boulder, CO. Grant, R.M. (1991), “The resource based theory of competitive advantage: implications for strategy formulation”, California Management Review, Vol. 33 No. 3, pp. 114-135. Greenleaf, R. (2002), Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness. Paulist Press, Mahwah, NJ. Gurin, P., Nagda, B.A. and Lopez, G.E. (2004), “The benefits of diversity in education for democratic citizenship”, Journal of Social Issues, Vol. 60 No. 1, pp. 17-34. Hardy, C. and Tolhurst, D. (2014), “Epistemological beliefs and cultural diversity matters in management education and learning: a critical review and future directions”, Academy of Management Learning & Education, Vol. 13 No. 2, pp. 265-289. Hartman, E.M. (1998), “The role of character in business ethics”, Business Ethics Quarterly, Vol. 8 No. 3, pp. 547-559. Harvard Business School. (2017), “Great American business leaders of the 20th century: Charles Clinton Spaulding”, available at: www.hbs.edu/leadership/20th-century-leaders/Pages/details.aspx? profile=charles_c_spaulding Ingham, J.N. (1994), African-American Business Leaders and Entrepreneurs: A Biographical Dictionary, Greenwood Press, Westport, Connecticut. Jackson, S. (2007), “Freire re-viewed”, Educational Theory, Vol. 57 No. 2, pp. 199-213. Jan, T. (2017), “Only 2 of the 300 case studies read by first-year Harvard Business School students include black executives”, Washington Post, 14 April, available at: www.washingtonpost.com/ news/wonk/wp/2017/04/14/harvard-business-schools-first-year-curriculum-featured-300-businessleaders-only-2-were-black/?utm_term=.1c37e2ede2d0 (accessed 5 June 2017). Kincheloe, J.L. (2008), Knowledge and Critical Pedagogy: An Introduction, Springer, Dordrecht. Kollinger, P. and Minniti, M. (2006), “Not for lack of trying: American entrepreneurship in black and white”, Small Business Economics, Vol. 27 No. 1, pp. 59-79. Kranz, R. (2004), African-American Business Leaders and Entrepreneurs, Facts on File, New York, NY. Lindsay, C. (2011), “All middle-class families are not created equal: explaining the contexts that Black and White families face and the implications for adolescent achievement”, Social Science Quarterly, Vol. 92 No. 3, pp. 761-781. Longenecker, J.G., Petty, J.W., Palich, L.E. and Hoy, F. (2012), Small Business Management: Launching and Growing Entrepreneurial Ventures, South-Western, Cengage Learning, Mason, OH.

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Van Praag, M. (2003), “Business survival and success of young small business owners”, available at: http://papers.tinbergen.nl/03050.pdf (accessed at 15 September 2016). Walker, J.E.K. (1998), The History of Black Business in America: Capitalism, Race, Entrepreneurship, Twayne Publishers, New York, NY. Weare, W.B. (1981), “Charles Clinton Spaulding: middle class leadership in the age of segregation”, in Franklin, J.H. and Meier, A. (Eds), Black Leaders of the 20th Century, University of Illinois Press, Urbana, IL, pp. 167-189. Weare, W.B. (1973), Black Business in the New South: A Social History of the North Carolina Mutual Life Insurance Company, University of Illinois Press, Urbana, IL. Winter, D.G. (2010), “Why achievement motivation predicts success in business but failure in politics: the importance of personal control”, Journal of Personality, Vol. 78 No. 6, pp. 1637-1667. Zeffane, R. (2013), “Need for achievement, personality and entrepreneurial potential: a study of young adults in the United Arab Emirates”, Journal of Enterprising Culture, Vol. 21 No. 1, pp. 75-105. Further reading Astrachan, J.H. and Kolenko, T.A. (1994), “A neglected factor explaining family business success: Human resource practices”, Family Business Review, Vol. 7 No. 3, pp. 252-262. Corresponding author Simone T.A. Phipps can be contacted at: [email protected]

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