NewsTaco

By: Victor Escalante, NewsTaco

A survey from The University of Texas, released this past week in San Antonio, at the annual convention of The Texas Association of Mexican American Chambers of Commerce showed that Latinos in Texas, start businesses at a lower rate than non-Latino white entrepreneurs.

The conclusions are sobering, but relative to how one frames the data. Here are the facts; Latino businesses generate less revenue, hire fewer workers, and frequently don’t grow. It gets worse; Latinos have lower levels of assets, fewer parents with business experience, and small business networks. One media outlet went so far as to compare the growth of Latinos in numbers to the disproportionate level of growth in Latino businesses.

The survey is a definite wakeup call for Hispanic Chambers of Commerce to spearhead a change of this trend. It is imperative that they lead the way to provide what respondents say are their critical needs, namely, training in management and leadership, customer relations, and communication.

The good news is Latino businesses are a large part of the economic recovery.  According to a U.S. Census report Hispanic owned businesses in the nation increased by more than double the national rate.  Between 2002 and 2007 Hispanic entrepreneurs started 15, 038 new businesses topping out at 44,206.  The ambition to start and own a viable business is much higher since these figures only factor businesses with receipts of at least one million dollars.

The cities with the largest number of Hispanic owned businesses in descending order are El Paso, San Antonio, Houston, Albuquerque and Los Angeles.

Having lived in El Paso, San Antonio,  and Laredo, it is easy to explain why this is the case.  El Paso is an oasis in the Chihuahua dessert that is thousands of years old. Legend has it that  the first Spanish explorer Juan de Oñate celebrated the fist thanksgiving in 1508, decades before Plymouth Rock. El Paso has a 59.8 percent of very diverse Hispanic owned businesses. The city grew around Fort Bliss and the downtown saloons in the wild wild west.

Houston, the nation’s fourth largest city is not as old as the others. But it has several generations of Hispanic owned businesses. According to Rice University’s sociology professor Stephen Klineberg, Houston has attracted a lot of immigrants due to it’s petrochemical and construction boom. Many of these immigrants have assimilated into the culture and now make up the majority demographic.  Although immigration has recently been negative in the political narrative, according to Mr. Klineberg immigration has been a net positive effect for Houston.  His prediction echos what other demographers prognosticate that Hispanics will be the majority in the year 2050.

The Hispanic entrepreneurial spirit can be seen firsthand by visiting any of the large flea markets in any large city in the country.  Houston has fueled and supplied that demand by building these markets in the predominantly Hispanic areas.  Many of these markets have been the incubator of businesses that have  grown to brick and mortar merchants.
According to the census report the top industries that Hispanics own business in are:

• Construction
• Repair and maintenance
• Administrative and support
• Health care and social assistance
• Transportation and warehousing

While these industries represent the top billing, in my experience  the long tail has every market segment including; small grocery stores, carnicerias, financial services, insurance, retail, and others.

To put this in perspective Hispanic owned businesses in 2007 generated receipts of 274.5 billion.  But the Hispanic spending is now over one trillion dollars in 2010.  If Hispanics in the US were a country they would be larger in numbers and in GDP than Canada.

The take away of this cuento is,  we have come a long way, and we have a long way to go to play on a level business field. .

[Photo by Victor Escalante]

In photo U.S. Congresswoman Sheila Jackson Lee cutting ribbon to start a Latino Expo

Friday August 17, 2012

Federal court gives 5 Florida counties extra early voting days (The Washington Post): A federal court on Thursday gave five Florida counties four extra days of early voting in this fall’s elections. The Republican-controlled Florida legislature last year cut the state’s number of early-voting days to 8 from 12. But the U.S. District Court for the District of Columbia said the changes won’t happen in Collier, Hardee, Hendry, Hillsborough and Monroe counties, which are covered by Section 5 of the Voting Rights Act of 1965.

 Hispanic Republicans see the American Dream in Rubio (Examinar): While undocumented youths were braving the heat, standing in long lines, trying to at least, start the paper work, across town at the Hotel Omni, Florida Sen. Marco Rubio spoke before the Texas Hispanic Leadership Forum. Through out his speech, he was greeted with “applause and standing ovations” as he labeled Obama “a painful disaster for millions of Americans” and challenger Mitt Romney as both a successful businessman and “a successful person.”

Marco Rubio, in Houston appearance, calls Obama ‘a painful disaster’ (Houston Chronicle): Before an audience of Hispanic Republicans gathered in Houston, Florida Sen. Marco Rubio offered a preview of his remarks at the Republican National Convention, labeling President Barack Obama “a painful disaster for millions of Americans” and challenger Mitt Romney as both a successful businessman and “a successful person.”

Pa. Voter ID plaintiff gets card amid appeal (Kansas City Star): One of the lead plaintiffs in a lawsuit to block Pennsylvania’s new Voter ID law has been granted the identification necessary to cast her ballot despite lacking the documentation required to get the card.

Obama hopes to Latino voters give him a chance in N.C. (Washington Post): Spanish speakers dominate the apartments here, part of a Latino population that has risen to 8 percent of North Carolinians. Registered Latino voters have doubled since 2008, to roughly 100,000. Those voters represent a crucial opening for the president in a state where, on the face of it, Obama should not hope to win again. North Carolina, which will host the Democratic National Conventional next month, was his slimmest win four years ago, the state has the fourth-highest unemployment rate in the nation, and Democrats have struggled here in recent years.

New immigration initiative draws thousands to Navy Pier (Chicago Tribune): Thousands of people showed up to Navy Pier, carrying school transcripts, plane tickets and other proof of their time in the United States as they sought temporary protected status under an Obama administration program geared toward students and young adults in the country illegally.

Illegal Immigrants Line Up by Thousands for Deportation Deferrals (New York Times): Tens of thousands of young illegal immigrants waited excitedly in lines as long as a mile and thronged to information sessions across the country on Wednesday, the first day that a federal immigration agency began accepting applications for deportation deferrals that include permits to work legally.

Arizona Gov. Defies Obama, Denies Benefits to Undocumented Immigrants (Time): Arizona Gov. Jan Brewer on Wednesday ordered state agencies to deny driver’s licenses and other taxpayer-funded public benefits to young undocumented immigrants applying for temporary work permits under the new Obama administration policy.

The Growing Influence Of The American Latino (Media Post): The undeniable and growing influence of Latinos in U.S. media and culture has accelerated the interest of businesses and marketers who are looking to break through to this powerful market segment. The trillion-dollar question, however, is how to engage those Latinos whose demographics are segmented or currently under the radar.

Hispanics’ Move From Niche to Mainstream Goes Beyond Numbers (csnews): While any retailer needs only to look at the latest U.S. Census numbers to see that the Hispanic population — and its spending power — are important to their business, the move of Latinos from niche to mainstream is more than just the numbers. The numbers, as powerful as they are, only tell part of the story, Guy Garcia, president of new mainstream initiatives at EthniFacts, told the attendees of the 8th annual Hispanic Retail 360 Summit, taking place this week in Los Angeles. “There are changes under the surface,” he said. “We all feel it.”

Latinas leaving the nest sooner than men (NBC Latino): According to a study by the Population Reference Bureau (PRB) in 2007, before the recession, 12 percent of Latino men returned home. The figure has now grown to 21 percent. For Latinas the figure only increased from 9 to 11 percent.

USA’s Hispanic-heavy lineup bites back at El Tri in Mexico City (Goal.com): In the days leading up to the U.S. national team’s historic win at El Azteca, there was plenty made of Jurgen Klinsmann’s inclusion of five Mexican-Americans on his roster. In the Mexican press, the words weren’t so kind. The general agreement was that none of the American contingent was good enough to move the needle on El Tri’s vaunted radar, settling for Klinsmann’s squad instead. Wednesday night the Mexican-Americans made El Tri pay for that sentiment.

By Arthur D. Soto-Vásquez

Joseph Carlos Madden, 28, is running for a seat in the Texas legislature. Originally from Houston, he already directs the Legislative Study Group and is the Chief of Staff for Rep. Garnet Coleman. As a young man, he’s one of the emerging leaders in Texas that will oversee the demographic changes that will transform our state.

NewsTaco had the opportunity to interview Madden recently, see his answers below.

NewsTaco: Please describe your district, what makes it unique?

Joseph Carlos Madden: Located in southwest Houston, it’s a very multicultural district.  Its about 50% Hispanic, and the other 50% is mix of African-American, Asian-American and Anglo.  I love it.  Where I live now, I can walk down the street and get Shawarma, Jerk Chicken or visit anyone of hundreds of taquerias. It’s a representative slice of the city.  And it truly reflects the face of Houston and the future of our country.

NT: What are your specific policy proposals for the district?

First and foremost, education. For me personally, it’s an important issue. My grandmother was born in Fort Worth and at one year old moved back to México; during her 18 years in Guanajuato, she had one year of formal education. She came back to the U.S. and worked as seamstress in Houston, raised six children and they worked their way through school.  I’m the first person in my family to graduate from college, so I know the value of an education and I know the value of good public schools and universities.

We need to ensure the funding is there.  The legislature during this most recent session cut $4 billion dollars from public schools. In 2003 they deregulated college tuition, and rates have skyrocketed since. Our schools are unable to deliver the services they are constitutionally obligated to do. In the Houston Independent School District, they have had to apply for waivers to raise the class size ratio; I would work hard to turn back those cuts in education and make sure our teachers have the resources they need.

Secondly, healthcare and jobs are a big issue to me, and to me, they really go hand in hand. If you got a good job you have good healthcare. We have 6 million uninsured Texans.  In 2014 we are supposed to implement the Affordable Care Act which means we need to enroll 1 to 2 million people in Medicaid; this past session, the legislature didn’t make any progress in implementing the act.

Finally, safe neighborhoods are very important.  There is gang violence in my district.  There are issues with graffiti.  If we properly invest and keep kids in school, that will go along way.

NT: You mentioned some people you worked with, but who else do you look to as a role model in leadership?

Locally, from Houston I look to Representative Jessica Farrar.  She is the first Latina to head House Democratic Committee and the Texas House Democratic Caucus. Having her at the helm is important, because it provides a unique vision and viewpoint that has not been there before. It takes a lot of courage to stand up to bad legislation, and she has been the person willing to do so. Nationally, I look to President Obama, he has set out a vision for this country. And Representative Coleman is my boss, but he always says, “If it is worth doing it is not going to be easy.” And I’ve taken that advice to heart in my current run.

NT: As a young person who could be doing many other things with his life, why run for office?

I was born in Southwest Memorial Hospital in the district. I learned from my grandmother that it is important to be involved in public service. I would go with her to the polls on Election Day. When I turned 18, I would go pick her up and we would go vote together. Through her I learned the value of hard work. I was a National Hispanic Merit Scholar, and while at the University of Texas I would walk over to the Capitol asking if any office had an unpaid internship. Since then I worked my way up and been involved in the process and play a roll in almost every bill that has been passed, both good and bad.

Arthur D. Soto-Vásquez is writer and an El Paso, Texas native.

[Courtesy Photo]