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John Hope Bryant

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Why The Entrepreneurship Of Inner-City Drug Dealers Might Signal American Strength

Posted: 08/08/2012 2:11 pm

I hate thug culture.

But I think that ex-thugs might actually help save our inner-city communities in America.

Specifically, I am talking about the seemingly untapped brilliance of otherwise corrupt drug dealers and gang leaders here in our American inner-cities.

At the recent Clinton Global Initiatives America meeting (CGI America), I spoke about my vision for the re-winning of America, and it centers around our newest innovation with HOPE Business In a Box, Powered by the Gallup-HOPE Index. The example I gave while on stage at CGI America was not a traditional one. It was one of an inner city drug dealer.

As we were talking about the power of the American idea, small business, entrepreneurship and the thing we all need now -- job creation -- the simple question I posed to the audience of more than 1,000 assembled dignitaries and leaders from across the nation was "what do you think a drug dealer is, if not an unethical American entrepreneur?" I went on to make it clear that the whole idea of drug dealers and the gangs I grew up around in Compton, California and South Central Los Angeles actually turn my stomach. That I believe drug dealing to be immoral and unethical, and that "there is a special place in hell reserved for anyone who sells death to their own people, in their own community and in our schools." That said, they may be immoral and unethical, but if someone is a so-called successful drug dealer, one thing they are not is dumb.

They understand import, export, wholesale, retail, markup, marketing, geography and territory, financing, and of course 'security.' They understand how to take something from an idea and with very few natural resources available to them, they then make that idea real (maybe a bit too real) in people's lives.

In doing all of this, and yes, again, unethical and illegal at its core, they did succeed in creating a job for themselves and several others around them. None of this is sustainable, none of it should happen, and given that they are not paying their fair share of taxes on their ill-gotten gains to the IRS, it will not even continue for very long (remember, the government did not finally convict Al Capone for murder and mayhem, but tax evasion). At its core, the drug dealers and gang organizers in my inner-city neighborhood growing up were brilliant organizers, strategists and enterprise builders. To be blunt, these inner city drug dealers are natural hustlers and entrepreneurs, just with bad role models and a corrupt business model, built on a form of 'bad capitalism.' All this is true, but they are not dumb.

As I look for real and sustainable solutions to the poverty and lack of opportunity I see everyday in my work at Operation HOPE in our inner-city communities in America, I am coming to a strange conclusion. We have locked up and thrown away the key to, in all probability, some of the very character traits that are required to stand up a community, create an emerging market and jobs, and grow local GDP growth. In order to be a successful entrepreneur you have to be a contrarian, an out of the box thinker and doer, someone who takes risks, is innovative, hard working and someone with a vision. All these are the traits of drug dealers and gang organizers. They are also single-handledly helping to destroy the very community and family structure that I am trying to grow and sustain, but the point is still not lost.

What if we have actually tossed away the 20% of society we actually need to save it, leaving the elderly, the infirmed, the young, broken families, or the traditional job striver to save a faltering community? What would have happened if all of the otherwise brilliant young people who want to become drug dealers, rap stars and athletes (because those are the only symbols of success and role models they see in their communities), had a proper business role model or business internship growing up? Maybe it would have changed everything.

It did for me.

John Hope Bryant is a thought leader, founder, chairman and CEO of Operation HOPE and Bryant Group Companies, Inc. Magazine/CEO READ bestselling business author of LOVE LEADERSHIP: The New Way to Lead in a Fear-Based World (Jossey-Bass), the only African-American bestselling business author in America, and is chairman of the Subcommittee for the Under-Served and Community Empowerment for the U.S. President's Advisory Council on Financial Capability, for President Barack Obama.  Mr. Bryant is the co-founder of the Gallup-HOPE Index, the only national research poll on youth financial dignity and youth economic energy in the U.S. He is also a co-founder of Global Dignity with HRH Crown Prince Haakon of Norway and Professor Pekka Himanen of Finland. Global Dignity is affiliated with the Forum of Young Global Leaders and the World Economic Forum. Mr. Bryant serves on the board of directors of Ares Commercial Real Estate Corporation, an NYSE Euronext publicly traded company, and a division of $54 billion Ares Capital.

 
 
 

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I hate thug culture. But I think that ex-thugs might actually help save our inner-city communities in America. Specifically, I am talking about the seemingly untapped brilliance of otherwise c...
I hate thug culture. But I think that ex-thugs might actually help save our inner-city communities in America. Specifically, I am talking about the seemingly untapped brilliance of otherwise c...
 
 
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02:16 PM on 08/13/2012
Wow! Somebody is missing a very critical part of the whole. Selling drugs illegally cannot be compared to establishing and maintaing legal successful enterprises. The illegal drug sale business is essentially easy. To qualify, a person has to at first and last be a "fool". The knowledge and effort it takes in running legal successful corporations\business would never appeal to criminals. If it did they wouldn't be selling drugs! He wrote "they understand import, export..." Hardly,,.smuggling is not importing and exporting. If you put them in a position where they were involved in legally importing and exporting goods, they would resort to smuggling. I completely understand what he means and how he came to his conclusion on wasted human potential. When you have nothing, your success is earned, not given. We make our life choices a lot earlier in life than we care to acknowledge. No Sir, that drug dealer is not a CEO.
01:47 PM on 08/13/2012
going from the street corner to the corparate corner i will tell the the ethics involed are pretty much the same except corp murder is called "hostlie takeover" or "merger" but dont think for a minute what u see on the corners is not going on in corp. america...by the way big pharma is no worse than a street peddeler in the amount of drugs they peddle to the communities
10:14 AM on 08/13/2012
I believe some of the responders missed the point. I've been involved in similar discussions with colleagues. From a purely business perspective drug dealers have a basic understanding of concepts taught in top universities (ex: purchasing, personnel management, distribution channels, marketing segmentation). Unfortunately they chose to use this knowledge in illegal, immoral and unethical ways. They prove that our young men have the intellectual foundation needed to be suceesful businessmen. What many don't have is the formal education, resources and in some cases the moral fiber to pursue legal businesses. If we can tap into the drug dealer's enterpreneurial spirit and management know-how, while reigning in the immoral/illegal mindset it could lead to more succesful inner city businesses and more young people on the right path.
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John Hope Bryant
Bestselling business author, thought leader, socia
10:50 PM on 08/13/2012
PRECISELY. You hit this (the poinf of this article) right on the head. I am saying, THEY ARE NOT DUMB, AND IN SOME CASES, THEY ARE NOT ONLY BRILLIANT, BUT REFLECT THE BASIC BEST OF AMERICA'S STRENGTH. Thank you for spelling it out.
11:52 AM on 08/12/2012
Drug dealers (and most of them are gang members) also have an advantage in their 'business model'. Don't like your competition? Shoot them. Brilliant strategy - don't like a new store moving into your territory Mr. Retailer? Go blow away the owner and their employees. Repeat as needed.

What we need is a paradigm shift in our high school education system - which right now goes with the theory that every kid is going to graduate and go to college. Meanwhile, we have jobs for blue collar workers like Welders, truck drivers, mechanics, plumbers, electricians, machinists, etc... that can't be filled for lack of qualified applicants. Welders here in South TX at the Eagle Ford Shale development make (I'm hearing) $100K a year. Welding. I think a lot of minority youth drop out of HS because they know they aren't going to college, and have no interest in going to college, so why bust your butt trying to pass Algebra, Chemistry, Geometry?

Create a Vocational path in HS, for kids who WANT that path (not forcing them to it) - and teach them needed math and science relevant to bluecollar work, with work internships and access to trade school training -- now you've got HS graduates who can get a JOB (and often a well paying job), without going to college for 4 years and $80K+ in loans.
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Davewaybe
Life gives us time only love gives us meaning
09:00 AM on 08/12/2012
LOL.... talk about whacked out...........

Lets also get the mass murderers out of prison and put them in charge of homicide, simply because they know how to do it well.......

I would you suggest you stop smoking, and sniffing it! It causes brain damage!
08:10 PM on 08/10/2012
Drug dealers aren't any smarter than us. They just get their product on consignment. If we could start a business with with little start up costs and a endless customer base, we'd be successful too. But the workin man has to get a loan, go in debt for years, pay employees , get more loans, work 12 hr days...Alot harder than the corners. But the life expectancy rocks!
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John Hope Bryant
Bestselling business author, thought leader, socia
05:14 AM on 08/11/2012
They are not smarter, but they do have two traits we desperately need in order to turn around inner-cities.

1. They grow ideas into enterprises (ethical or not is not the issue or point I am making here).
2. They take enormous risks to pursue that which they believe, in order to make it real.

These traits are the essence of entrepreneurship.

On your other points. Beyond you making an obvious humor point, and me respecting you as a hard working man, let me state this:

* Their start up costs typically include a consignment of their lives.
* They get a loan, it is just not called on. That consignment you reference, includes the worst repayment terms on the planet. Repay with worst that payday loan terms, or your dead in 24 hours.
* They often work 12-15 hour days, and when you calculate it, it comes out to less than minimum wage. Which means they need a financial literacy lesson too.

And yes -- your life expectancy rocks. :)
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Alex0393
Are you people for real?
06:28 PM on 08/10/2012
Sir you could not be anymore correct in that assessment than you are. I am not black but I spent several years around drug dealers and all that entails. Even back then I would admire at times the creative ideas used in drug dealing. More than that I admired the passion and focus involved with both those getting the drugs and those dealing them. Like you it all makes me sick to my stomach now to know that I was ever a part of that and there is nothing wholesome about it. It is evil at it's absolute worst, but it's not stupidity. Even today I think that if I could transfer the drive and ability to be creative in methods and ways to obtain money I had for drugs to my business, I would dominate the market. Yours is an excellent idea and I hope you can tap into some of that intelligence and use it for good instead of bad
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HUFFPOST BLOGGER
John Hope Bryant
Bestselling business author, thought leader, socia
09:27 PM on 08/10/2012
Thank you. This (what you state as a worthwhile goal of asking these questions) is our objective, and our national plan for our newest big idea -- HOPE Business In A Box, and the Gallup-HOPE Index. I plan, soon, to actually approach gang members and former drug dealers, first to test the idea out and to get THEIR input on how to make it better....and then to try to co-opt their involvement. These inner city communities need what I call 'a new narrative.' I plan to offer them, just that. It will take some time, but this is my commitment. Thanks for your input. JHB
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Alex0393
Are you people for real?
10:03 PM on 08/10/2012
I certainly wish you success. I grew up a poor white kid in Mississippi and it wasn't until I was 16 and fell in love with a rich girl that I was exposed to any kind of money. But my time in that world made me want part of it. Every single gang member isn't a bad kid, some just need exposure to a life where you succeed and don't have to look over your shoulder. Where you get a different kind of respect based on your intelligence and not your willingness to use violence. I think yours is the best idea I've heard in helping these kids. Throwing money at problems without a plan is useless. It's a brilliant idea and my hats off to you
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dbrett480
12:49 PM on 08/09/2012
Good column. However, we must realize that these drug dealers cannot be simply pulled out of their current "job" and given a more suitable profession. Since they are used to using violence to protect their enterprise, they will continue to do so no matter what job they are in.
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HUFFPOST BLOGGER
John Hope Bryant
Bestselling business author, thought leader, socia
11:42 PM on 08/09/2012
Of course you are right, and I am not suggesting they can. What I am suggesting is that they are much more than the 'useless, skill-less, lazy, etc, etc" that society often subscibes to them. My point is - if they had better roles models growing up, and were born in South Beach instead of South Central, would they be entrepreneurs running a 5M legit business, and not the community decay they represent now. Something to think about. Particularly when we lock them up and throw away the keys....
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Alex0393
Are you people for real?
06:29 PM on 08/10/2012
At the same time they'll also find that in the real business world that violence isn't required as it is in the world of drugs
02:26 PM on 08/13/2012
I applaud you for the effort of moving to save a lost generation of resources. It woked for the British and the New America. Following the end of the Revolutionary war the British dumped their criminal populations on to the new shore of America. Just listen to that British accent in the south. They eventually turned out to be quite productive. Just as long as you know what you're up against. Your strategy should succeed.
03:28 AM on 08/09/2012
You raised an excellent point, one that I've talked about for years. However, your criticism of dealers made the language of this piece come off very one-sided. Providing examples of solutions to this problem would've made a more objective statement. Many business entities that "pay taxes" provide a different poison with a similar result. Obeying the law doesn't make you better - It just means you're not defiant.
12:50 AM on 08/09/2012
When Oakland drug lord Felix Mitchell died thousands lined the streets for his funeral to pay their respects including former Black Panthers.

Drug gang leaders might not be dumb but some of the communities they "serve" sure are. Not simply dumb but also utterly deluded as to the negative impact of such gangs on their communities. Add to that an unhealthy pinch of the "stop snitchin" mantra and you have a recipe for disaster. Throw in a 70% illegitimacy rate and the financial impediments that result from such unstable familial arrangements and you have an apocalypse.

It's going to take more than harnessing entrepreneurship. It's going to require an entire cultural, philosophical, and moral change starting with people taking far more responsibility for bringing children into the world and providing them with the educational, financial, and social resources needed to succeed in legitimate economic spheres.
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John Hope Bryant
Bestselling business author, thought leader, socia
04:42 PM on 08/09/2012
I think you are right on here. Take a look at our proposed solution to this needed 'cultural shirt,' as well as creating a new national and community (and self) narrative. It's called HOPE Business In A Box powered by the Gallup-HOPE Index.
Genders
Love, Tolerance, Enlightenment
10:25 PM on 08/08/2012
Drug dealing is a terrible business. Only the top 1% make anything, the rest goo to prison.

But agreed, we need to end the war on drugs, it a crime against humanity, and provide a great citizens safety net with free education,. health care, needed room and board, like Sweden and the other civilized people do.
01:08 AM on 08/09/2012
The war on drugs should end. Free education should be offered as well as medical care. But room and board - I don't think so. The root cause of the black communities problems lies in the destruction of the black family. To be successful children need stable homes with reasonable financial security and strong educational values. No one looking at the inner-cities these days could say that such things exist. 90% of the black students at my school live in single-parent households. For my Asian-American and white students its less than 10%. Now which group do you think is doing better academically? Which group has less health and discipline issues?

The solution for the African-American community is not complicated. Stop having children when you don't have the financial or social resources to ensure (as well as one ever can) that they get the best possible start in life when it comes to health and education. Of course whites have these problems as well but the simple fact is that, in terms of proportions, it is no way near the same degree as blacks. Most of the white parents at my school are well into their late 40s and even 50s. The black parents are in their 20s or 30s. The white kids parents have a 20 year advantage in building wealth and equity because they can do things that parents with children cannot, especially if the parents did not have a good financial situation to begin with.
Genders
Love, Tolerance, Enlightenment
10:52 AM on 08/09/2012
poor people have more children, the world round.   The answer is simple.  Tax the rich, end the wars, prosecute the banksters, spend massively on infrastructure, green energy and the citizens safety net.
Free health care, education and room and board if needed.  
Sweden does it.  Why can't we?  
Genders
Love, Tolerance, Enlightenment
03:03 PM on 08/09/2012
Have
to have minimal safe room and board.  a watched apartment
building, with a single room, bed and a cheap notebook computer.
 access to the shower, and toilet, towels.   We could do it
as paid in full vouchers that YMCA or other groups can accept, but
there has to be a public option to set the standard.  

For
families they get roughly the same per person but a combined unit.  
As you say, kids need stability.  They should not live in fear
of having to move, of going homeless. 

What
we can do is offer free birth control everywhere anyone wants it.
condoms, the pill, whatever.  With stability, access to free
education, room and board they will not want to have kids, that
what's happened all over the world when you raise the minimum
standards of living and open access to education. 

Trying
to punish, penalize or starve the poor away doesn't work.  

Care
does.