Brooklyn's Progress
April/May 2007

BY CAROLYN DESALU

In February the Center for an Urban Future released an 18-month study which sited immigrant business owners as an entrepreneurial sparkplug for cities such as New York, Los Angeles, Boston and Houston. Although immigrants contribute significantly to the economic growth of these cities, particularly in areas such as transportation, telecommunications and restaurant wholesaling, they are often overlooked in long term strategic plans by many economic development vehicles due to largely cultural barriers and language communication problems.

Alan But, chief operations officer of Twin Marquis, a food manufacturer in Williamsburg, explained that he grappled with a lack of capital and communication with others outside his community. “As an immigrant entrepreneur, one of the biggest challenges at the beginning was working to overcome language barriers.”

According to the U.S. census, the period between 1990 and 2000 showed a 53% rise in entrepreneurship by foreign born residents while native-born residents for the same period increased by only 7%. Diane Baillargeon, CEO and president of Seedco, a New York-based community development corporation stated within the study that “[Immigrant entrepreneurs] are an important source of jobs for entry-level workers. They are the lifeblood of many neighborhood economies in the city.” However, rising real estate and insurance costs are forcing some to flee for more cost-efficient areas like Florida, Georgia and North Carolina.

With interviews from immigrant business owners, non-profit organizations, and analysis of state and federal data, the study recognizes that these business owners will not replace the powerhouse of Wall Street firms; but instead, will continue to be a significant economic driver particularly when the economy experiences a downward spiral.

The report states that many immigrant businesses never achieve their full potential. Oftentimes they are excluded from policy-making decisions and without a major governmental push, their visibility is invisible. Rick Russo, director of the Brooklyn Business Solutions Center says, “These businesses need visibility and financial vitality which is a function of an engaging marketing campaign and financial literacy programs.”

Some businesses declare bankruptcy shortly after establishing their shop or incur costly mistakes because they accept poor advice from friends and unscrupulous kinfolk. To that end the study highlighted the lack of trust that many immigrant entrepreneurs have towards government and non-profit agencies because they hail from countries where their government was corrupt.

The study commends Mayor Bloomberg’s administration for taking important steps to create supportive business outlets such as the Department of Small Business Services (SBS), but points out that the integration of immigrant entrepreneurs in the overall economic strategy of New York City is still required. New York City will need to analyze how to better serve and grow the sector using ethnic-based partnerships, which can generate cross-cultural appeal through exporting.

Creating an action plan that specifically connects immigrant business owners to local organizations such as SBS will undoubtedly give them more visibility. The study recommends a new framework, which will provide improved business services while maximizing the resources available in the Mayor’s Office of Immigrant Affairs. And, in a Utopian world, other business would share the same sentiment as Mr. But. “One of my greatest business accomplishments to date is being able to hire and manage more employees. Since last year, I hired twenty additional staff members.”