Urban Legends As entrepreneurs, hip-hop artists seem unstoppable. What's their edge?
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."
Simmons' groundbreaking success has ushered in scores ofhip-hop entrepreneurs hoping to tap into the same well with similarresults. P. Diddy has also created a name for himself as a hip-hopentrepreneur. But will he and other artists shape how entrepreneursin general are perceived? "Once there are a few successstories out of the context of hip-hop and media, yes," Eckospeculates.
Few doubt these hip-hop entrepreneurs will influence otherentrepreneurs when it comes to business attitudes. "When newpeople get in power and find success, they bring a new energy andway of thinking to the table; that's what we're seeingright now," observes Jameel Spencer, chief marketing officerof P. Diddy's Bad Boy Worldwide Entertainment Group andpresident of his advertising company, Blue FlameMarketing. Nontraditional approaches to running a business andsetting goals--whether it's the unconcealed ambition or thebrazen manner in which the spoils are spent--can be shocking, butlet's not forget Donald Trump. These entrepreneurs areinarguably successful at what they're doing and how they'redoing it, and the younger generation of entrepreneurs is sure totake note.
Though many hip-hop artists project images of uncheckedmaterialism in their music, Spencer says it's unfair totranslate that persona to the artist as entrepreneur. "[Musicis] their day job, but as entrepreneurs, they're extremelyresponsible and sensitive to what they're putting out," hesays.
Ecko acknowledges that some artists do define themselves bywealth and success. "It's part of the journey," heexplains, "a function of being nouveau riche and coming toterms with things."
Ultimately, business is still business. Ecko, who also foundedComplex magazine and has partnered with rapper 50 Cent toproduce G-Unit Clothing Co., knows that 50 Cent's attachmentwill help the business, but both realize it can't depend on itin the long run. "Celebrity doesn't make a business. Greatproduct, marketing, fair value and knowing how to get it to themarket makes great business," asserts Ecko. While both Eminemand Snoop Dogg's clothing lines resulted in disappointingsales, Ecko's $250 million men's clothing line has neverused celebrities or his own likeness.
Devin Lazerine, 20, founder of Rap-Up magazine andRap-Up.com, has no recording contract, only a passion for hip-hop.He launched his youth-oriented hip-hop site in 2000 and followed ayear later with the magazine, projecting 2004 revenues of more than$550,000. Inspired by older hip-hop entrepreneurs, Lazerine is intalks to create a TV show based on his story, and dreams ofstarting a publishing company, record label and clothing line."Hip-hop is to achieve more than what you have," he says."Young people [now feel they] can be successful if they have agoal and work hard achieving it, going beyond theirexpectations."
