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Urban Legends As entrepreneurs, hip-hop artists seem unstoppable. What's their edge?

By April Y. Pennington

Opinions expressed by Entrepreneur contributors are their own.

Though music is what gave them fame, hip-hop artists havegrabbed hold of mega-entrepreneur status with the same swiftnessand style in which they bust lyrics on the mic. These savvy artistshave built massive business enterprises, cashing in on theirhousehold-name status to launch everything from restaurants andclothing lines to beverage companies. Once negatively associatedwith violence, profanity and a culture that scared Middle America,hip-hop now reaches a receptive mainstream audience eager toembrace their diverse offerings outside of just music.

Do these artists have inherent common qualities that make itmore conducive for them to start businesses? "The nature ofhip-hop and the dynamic that spawned hip-hop is innatelyentrepreneurial," says Marc Ecko, founder of urban clothingand lifestyle label Ecko Unlimited, based in New York City. "It'ssomething made from nothing."

Russell Simmons, godfather of hip-hop entrepreneurs, can attestto the opportunity in this niche. Co-founding Def Jam Recordings 20years ago, Simmons' empire now includes multimedia RushCommunications Inc. and even a segue into Broadway with Def PoetryJam. (His Phat Farm clothing empire was sold to clothing giantKellwood Co. in January 2004.) "We are by far the bestbrand-building community in the world," says Simmons."There's no reason why we can't build some brands thatwe own--that's what hip-hop culture and hip-hopentrepreneurship is."