Busting barriers to entry

Work Hard’s mission has helped to lower barriers to entrepreneurship in a longstruggling part of the city. Nestled in the green slopes above the South Side Flats, Allentown underwent a 70percent population decline between 1940 and 2010, shrinking from 8,200 to 2,500, according to U.S. census data.

The data show that in 2010, 28.5 percent of residents lived in poverty, compared to a citywide poverty rate of 21.7 percent. Eightysix percent of Allentown residents had no formal education beyond high school in 2010, compared to 59.5 percent citywide.

A resident of neighboring Beltzhoover, Lewis Johnson spent most days loitering outside businesses in Allentown before joining Work Hard about a year ago. Out of prison for nearly 30 years, he had been looking for work, but no one would hire him.

After following a woman into Work Hard one day, Mr. Johnson met Mr. Lucas and told him he needed a job.

Mr. Lucas asked Mr. Johnson what he could do.

“I’ll clean this building if you give me a chance,” Mr. Johnson replied.

Work Hard hired Mr. Johnson to clean the building and helped him to launch Bigg Dog Maintenance Services, which now has six clients in Allentown, Brookline andEast Liberty.

Mr. Johnson credits Work Hard with finally giving him the guidance he needed to start his own business. “I had no one to assist me in enlightening me with these things,” he said. “Society being unforgiving, no one wants to tell you some rent was affordable. The commercial vacancy rate in the neighborhood stands at about 20 percent, according to the Hilltop Alliance.

Viewing Allentown as a risky investment and citing Ms. Corts’ and Mr. Miller’s lack of experience and equity, traditional banks refused to finance Black Forge, according to Ms. Corts. So, with help from Work Hard and the Hilltop Alliance, Ms. Corts and Mr. Miller raised all the funds they needed through the website Indiegogo.

Today the heavy metal, punk-themed Black Forge is a popular neighborhood destination and draws customers from other parts of the city.

Work Hard has provided additional financing for the coffee shop by drawing on an investment fund it started after receiving a $5,000 grant from the community development foundation Neighborhood Allies, according to Mr. Lucas. The fund has made loans to about five Work Hard companies.

Democratized decisions

Business attorney Gregg Zegarelli has assisted Work Hard in organizing as a cooperative and is struck by the democratic nature of the model.

“The internal governance of the organization is based upon collective decisionmaking, which is very unusual,” explained Mr. Zegarelli, who launched his own practice about 30 years ago. “The standard paradigm of entrepreneurship tends to be a top-down model.”

For Mr. Johnson, it is empowering to have an equity stake, and the potential to build additional wealth, at Work Hard. “I have stock!” he said. “I’ve never had stock before. As a person that has stock, that makes you an asset to the world.”

“If you want to really address wealth inequality — if you want to stop this 1 percent controlling 50 percent of the world’s resources — then co-ops are the answer,” Mr. Lucas added.

Even members who do not own units but simply rent space at Work Hard benefit from the enterprise. Businesses in the neighborhood regularly contract web development, social media and other technical and creative services from freelancers at Work Hard.

Freelance reporter Brian Conway has received numerous projects through referrals from other members at the cooperative. They’ve even helped him to scoop news stories.

The cooperative also sets base rates that clients must pay for contract services. Mr. Conway said he would not be able to command such high feesas a lone freelancer.

Community connection

Aside from generating economic activity in Allentown, Work Hard’s members have become directly involved in the community.

Mr. Lucas and Ms. Corts, for example, serve on the board of the all-volunteer Allentown Community Development Corporation, and