By Crystalyn Johnson
In the heart of Howard, student entrepreneurs are dealing with an unyielding obstacle: inflation. At a university known for fostering innovation and creativity, student business owners are facing rising costs that threaten the sustainability of their profession.
Howard’s entrepreneurial landscape is diverse, encompassing everything from clothing brands to service-based businesses, all driven by a passion for creativity, meaningful messages, and a deep connection to the student body.
Though these student-run businesses are thriving, inflation has affected the progression of their businesses.
“Manufacturing expenses have increased across the board, from production costs to general goods. Even managing my Shopify store has become pricier since launching my business,” said Eric Jackson, a senior majoring in Organizational Communications and the visionary behind The Uncommon Ones brand.
Eric’s journey highlights the financial challenges facing student entrepreneurs amidst inflationary pressures. He also speaks to how being a student has shifted how he markets his brand due to pricing and lack of accessibility.
“It is harder to market to students because where I’m pricing at now,” said Jackson. “It’s not necessarily accessible to people who are looking for an introduction to the brand.”
Jackson’s strategy includes gradually introducing lower-priced items along with his current items. This approach aims to ensure that customers, regardless of their budget, can have a connection with the brand without experiencing financial strain or hesitation.
By expanding the range of products available at varying price points, Jackson intends to make his brand accessible to a larger audience by promoting inclusivity and participation amongst potential customers.
This shift not only aligns with market demands but also reflects Jackson’s commitment to building a brand that can realistically connect with a diverse consumer base in spite of the current economic reality.
Many student entrepreneurs encounter similar challenges as they strive to balance affordability and the overall essence of their brands.
Jawuan Freeman, owner of Notorious Lifestyle LLC, recounts his experience with inflation impacting his brand by also recognizing the supplier side of inflation and how it directly impacts the acquisition of his products.
Their [suppliers] situations directly influence their mobility in prices and budgeting so it will be a very big factor considering how much they’re willing to sell their products to you for.” said Freeman.
Inflation significantly influences entrepreneurs’ sourcing decisions. Donovan Okyere, a freshman supply chain management major, emphasizes the necessity of outsourcing to obtain clothing for his brand.
“Inflation is the reason why I don’t go through American manufacturers. I pretty much work with people in China or Pakistan because prices are way better, considering everything has gone up,” Okyere said.
Understanding the intricacies between inflation and sourcing strategies is crucial for entrepreneurs at Howard University. Jawuan Freeman and Donovan Okyere’s experiences highlight the broader challenges faced by small business owners.
Though the students are the ones being impacted by entrepreneurial challenges, these obstacles are not lost on the faculty either.
Dr. Johnny Graham, marketing professor and the associate director for the Howard and PNC National Center for Entrepreneurship, has observed firsthand how inflation has affected entrepreneurs. Graham highlights the nuanced ways in which rising costs and economic pressures impact business endeavors not only as entrepreneurs but as students as well.
“For a lot of small businesses because their margins are so small, that little change in cost because of inflation has a drastic impact on their bottom line on their profit, it can really make or break whether that business is able to sustain from week to week or month to month.” Dr. Graham said.
Dr. Graham believes that it’s okay to increase your price with inflation, and in order to maintain a profit, you have to ensure that the price level set for your product is above the cost of production.
