Freedom motivates a local small business owner
Mohommmd Horb, right, at annual black party honoring 'A' studonH. r
By VINCENT WOODY
Special to The Chkwkh
Mohammed Herb believes that
black owned businesses have
always been the back bone of the
community.
Herb sees these businesses as
legacies African Americans can
pass on to their youth so they can
have something to build upon.
"Once the youth see my success,
they can say, well, Herb did it, why
can't I do it better. Maybe 1 can
sell furniture, or bicycles, or electri
cal parts.' The youth never see
examples of black business and I
can serve as an example or model."
Having lived most of his life
between North Carolina and New
York, Herb was actually raised by
his grandparents who were share
croppers, At that time, finances
were very limited.
"I would never see my grand
parents control money. They
always owed somebody'," said
Herb Seeing his grandparents in
this situation helped feed his will to
provide for himself.
He attended college at
Winston-Salem State University
on a golf scholarship. Herb always
wanted to play golf and did actual
ly tour for a short while, but his
career was cut short because of a
lack of sponsors.
He has been in business for
himself, with the exception of one
job in private industry. Since
1967, Herb has been involved in
different types of businesses. His
entrepeuneurship began on the
streets of Long Island, New York.
"I began by selling hats. I started
making between $300 and $400 a
week selling hats and then I moved
to Los Angeles, California", said
Herb.
While in Los Angeles Herb was
a DJ and a night club owner. The
name of the club was "Herbs on
the Hill", and according to Herb it
was semi-successful. This lasted
approximately 18 years.
When he returned to Winston
Salem in the late 1970s, he contin
ued in the nightclub business open
ing a club called the "Kosmilite."
He later began his first retail cloth
ing business, where he literally sold
from his car.
"Great businessmen began as
peddlers, a good example is R. J.
Reynolds," Herb said. "I also used
to peddle cigarettes."
The money he saved peddling
clothing (from his car) went to buy
his current business. Herbs
Bargains, which has been around
for 13 years.
Herb's greatest motivation in
opening his own business is free
dom. He never was good at jobs or
taking orders from others. In fact,
the longest real job Herb had only
lasted around ninety days. Herb
always had an idea of how he
wantel to do things and going into
business for himself was the only
way.
It wasn't always easy for Herb.
At times, he had to sell door to
door to get enough money to buy a
van and eventually a building.
Today, Herb's Bargains is fre
quented by neighborhood youth
seeking advice on how to open
their own businesses.
"I inspire a lot of other people
to go into business just by being
able to stay here," said Herb. "It is
not difficult to get started in busi
ness. All you need is a privilege
license and a tax number."
I
According to Herb, "It takes a
while to establish yourself as a
legitimate business. Often the real
ity of being 'open for business' is
missed because black businesses
come and go so fast. When cus
tomers come in and see that my
merchandise is priced the same as
in the majority of other stores,
they are shocked."
Regardless of this obstacle it
has always been Herb's goal to
establish himself as a legitimate
business and grow from that. He
states, "I always said if I could stay
here for 10 years, I could establish
myself as a businessTve been here
for 13 ypars and never looked
back."
In addition to Herb's Bargains,
he is also in the farming business.
Nu Agra, is the name of the Mack
owned farmland
"We are just trying to feed our
people kosher food and produce it
for ourselves. Be independent,"
Herb said.
His Muslim faith and teachings
do not permit him to sell pork,
wine, beer, and cigarettes.
"People thought I wouldn't
make it because I don't sell wine,
beer, and cigarettes. They think r
that is the only way to get Mack
business I proved them wrong by
being able to stay here," added
Herb.
In addition to being in business
for himself, Herb also works in the
community. He organizes annual
Mock parties with sponsors from
the community and also awards
students who do well in school
with cash prizes "Over the years 1
have given over SIS,000 in support
of these types of events" said
Herb. He hopes that his business
ventures and work in the commu
nity will motivate others to take it
to the next level.
When asked about the decline
of black business Herb replied,
"Winston Salem used to have
three-hundred-sixty black busi
nesses. Big majority businesses
wiped us out. Malls wiped us out.
We, as a people, like big attractive
stores and lights and went to them
rather than black businesses. We
need to learn how to do for our
selves again rather than depend on
others for all our jobs."
Herbs Bargains is located at the {
corner of Jackson and First J
Streets.
I
Johnson recognized for
outstanding achievement
In honor of National Women's
Month, The Chronicle would like
tj^fecognize the accomplishments
Lexie Johnson.
?&n Feb. 17, Johnson, an adver
tising account executive for The
?hjonicle, was one of 22 people to
i^eive the 1997 Distinguished
Mies & Marketing Award
?SMA).
*The DSMA was established in
? 3 and is given annually to sales
rcofessionals worldwide to
knowledge their outstanding
4Phievements in the area of sales.
Johnson was also a 19% DSMA
nvapient.
? Johnson, who resides in
Oxington, N.C. with her husband
l$>bert, had 20 years of experience
ikj. retail banking before making
h?r move to The Chronicle. Now
her fifth year, Johnson's total
s^l$s contribution for 1997 exceed
*
Lmxim Johnson
ed $200,000. Johnson, who is a
member of First Baptist Church
in Lexington, also is the mother of
four grown children.
Minority health care
|roup sues government
J INDIANAPOLIS (AP) ? A
wde group for black-owned home
fidth care providers has filed a
Herat lawsuit alleging a govern
Snt crackdown on Medicare
id has unfairly hurt them.
TThe Indianapolis-based
H^tional Minority Home Health
Itare Network Inc. sued the
lealth Care Financing
Vdministration last week in U.S.
district Court in Indianapolis. The
iCFA is the agency in the
department pf Health and
thman Services that administers
be Medicare program.
? The network claims the Clinton
idministration has unfairly target
ed minority companies in a three
'ear-old crackdown on fraudulent
)illing practices by home health
are providers.
The lawsuit claims the HCFA
las forced minority companies out
if business by requiring surety
x>nds of $50,000 or more, subject
ng them to criminal investiga
ions, withholding payments for
services and dropping them from
he Medicare program.
"Our very existence is in jeop
irdy as well as our ability to fulfill
he medical requirements of" the
population we serve," Phebe
Blackman, president of the net
work, said in a news release.
The network represents more
hab 200 home health agencies
awned by blacks and other
minorities. Together, they employ
ibcfcit 10,000 people.
The lawsuit seeks $100 million
in damages and an end to the
bonding requirement.
Attorney Eric Vickers of St.
Louis said some black-owned
companies have had problems
obtaining bonds because they are
not as well established as white
owned companies.
"The policies and the practices
have a disparate impact on the
minority-owned agencies. Even the
white-owned agencies have noticed
this," Vickers said.
Chris Peacock, an HCFA
spokesman, said Monday he could
not comment directly on the law
suit, since agency officials had not
yet seen it.
However, he defended the
crackdown, dubbed Operation
Restore Trust, as necessary to root
out what he termed "unscrupulous
home health care agencies."
The amount of Medicare fund
ing dedicated to home health care
increased more than fivefold from
$3 billion in 1990 to S16.7 billion
in 19%, Peacock said. Average vis
its per beneficiary rose from 33 to
76.
"You had home agencies that
were billing Medicare for services
they did not provide, for services
that Medicare by law is not per
mitted to provide," Peacock said.
HCFA can make exceptions to
the bonding requirements in some
cases, Peacock said, and is consid
ering rule changes designed to
make bonds more accessible to
certain home health care
providers.
" *
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