Neighborhood Watch
When taking care of the community means taking care of business.
New York City entrepreneur Dorothy Pitman Hughes was on a
mission. After years of supporting local economic empowerment
efforts, in late 1997, the owner of Harlem Office Supply Inc.
decided to take her involvement to a whole new level.
Her goal? To educate black youths on the power of investing. But
her teaching method was virtually unheard of in her Harlem
community. Hughes began selling shares of her company stock for $1
per share. "We were shocked at the response," she says.
Hughes sold 85,000 shares in the offering's first week, fueled
by an advertising drive in local media and churches.
The SEC 504(d) over-the-counter offering has enabled Hughes to
expand her business, but she says her real reward is in giving
Harlem's future entrepreneurs a taste of business ownership
through their stock purchases. Parents drop their kids off for the
Saturday morning investment classes Hughes holds for students aged
6 to 15. If they can save up $125 for sneakers, she counsels, they
can also save for their futures by investing. "[The] children
are really beginning to understand it," says Hughes.'
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And the trend is catching on at all age levels: With nearly
$400,000 in total shares sold and more than 5,000 shareholders,
community members are even registering their babies for shares and
giving shares instead of traditional gifts at baby showers.
Hughes' goal is to take Harlem Office Supply public on
January 1, 2000. "It's become more like a crusade,"
she says of her unique win-win approach. And she's spreading
the word: "It's a prototype [for entrepreneurs] that can
[benefit youths] nationwide."