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The 2nd Biennial Engaging Immigrant Entrepreneurs & Small Business Owners Forum

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Featuring presentations from:
- Alvaro Lima, Director of Research, Boston Redevelopment Authority
- Alberto Calvo, President of Stop & Compare Supermarkets & Chair of Social Capital Inc.
- Alexa Marin, Economic Justice Fellow, Lawyers' Committee for Civil Rights
- Norman Eng, Economic Development Specialist/Public Information Officer, Small Business Administration
- Karleen Porcena, Program Officer, Boston Local Initiatives Support Corporation*
- Cisnell Baez, Program Manager, Family Independence Initiative
- José Luis Rojas Villareal, Community Group Manager, Mass Growth Capital Corporation
- Denzil Mohammed, Director of Public Education, Immigrant Learning Center
- Janin Duran, Director of Entrepreneurship for All's Spanish Program

* Slides not available at this time

Publicada em: Economia e finanças
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The 2nd Biennial Engaging Immigrant Entrepreneurs & Small Business Owners Forum

  1. 1. The 2nd Biennial Forum on Engaging Immigrant Entrepreneurs & Small Business Owners November 13, 2015
  2. 2. Engaging Immigrant Entrepreneurs & Small Business Owners Forum What we need to know? Alvaro Lima Director of Research, BRA Bunker Hill Community College November, 2015
  3. 3. We need to know:  Why they are in business  What are their development paths  What are the enablers and barriers for success
  4. 4. SOCIAL FORMS OF PRODUCTION production for income production for direct use production for profit Self- employment (micro- businesses) Small businesses Growth businesses  Employment & Revenue Size & Capital Structure 1. 1-2 people & < 10K & < $100K 2. < 500 people & < $20M … 3. > 500 people …  Financial Structure & Ability to Leverage 1. Simple cash flow & no ability to leverage 2. Bank financing 3. External financing, investors, VC, investment banks  Management Structure 1. Hands-on worker & control everything 2. Management across all functions 3. Professional management, board, investors  Skill Sets 1. Finding & servicing customers 2. Detailed understanding of industry 3. Financial and organizational skills  Employment Size & Structure  Technology, Production & Markets 1. Low to no technology 2. Single technology, production & markets 3. Multiple products, technology & markets  Success 1. Make enough individual income & control lifestyle 2. Salary & Profits & Value of Company 3. IPO/share price Production for Profit – How do they differ?  Ownership Structure 1. Single owner or not incorporated 2. Independently or family owned 3. Limited liability & more complex legal structure
  5. 5. ENTERPRISE DEVELOPMENT BENEFITS • Independence • Limited liability (easy to exit) • Ability to gain more than wage CHALLENGES/ LIMITATIONS • Volatility/high failure rate • Limitations to profit • Limited capacity BENEFITS • Improved stability • Higher profit • Improved customer reach CHALLENGES/ LIMITATIONS • Increased competitive threat • More difficult to exit • Higher managerial involvement needs • Limited capacity BENEFITS • Lower failure rate • Steady profit • Further customer reach • Scale economies CHALLENGES/ LIMITATIONS • Management delegation • Attracting skilled managers • Growing IT/ computer needs Domestic & Wage Labor Self- employed Small Employer Growth Business ENABLERS • Build reputation and steady client base • More capital - fixed costs • Get licenses/ permits ENABLERS • Expand client base • Expand org. structure • Get mgmt. training • Get loans variable costs fixed costs technical skills managerial skills income target return on capital entry points ? ? ENABLERS • Easy to start – easy to reach customers – little skill training – low capital requirements • Fast breakeven ? progression
  6. 6. Denzil Mohammed Public Education Institute Director Immigrant Learning Center
  7. 7. Immigrant Entrepreneurs in MA
  8. 8. Immigrant Entrepreneurs in MA Statistical Profile, Characteristics, Contributions Denzil Mohammed Director, Public Education Institute, The Immigrant Learning Center, Inc., Malden, MA
  9. 9. The ILC Public Education Institute • 1992: The ILC is started to provide free English classes for foreign-born adults – 8,500 to date. • 2003: The ILC Public Education Institute is established to counter anti-immigrant sentiments.
  10. 10. The ILC Public Education Institute • Started in 2003 to tell the other side of the story • Commissioned research to develop credible, alternative narrative documenting economic and social contributions • Free, national webinars for immigrant-serving organizations, educators, etc. • Immigrant Entrepreneur of the Year Awards • Inform policy, media, public, field
  11. 11. Institute for Immigration Research Institute for Immigration Research at GMU: www.iir.gmu.edu
  12. 12. Immigration Quiz Immigrants comprise what share of the Massachusetts population?
  13. 13. Which of these companies was not founded by an immigrant? Immigration Quiz
  14. 14. Immigrants in Massachusetts 15.6% Share of state population (983,389) 35.3% Growth in immigrant population 2000-2013 (Higher than national average of 32.9%) 52.5% Share of immigrants who are naturalized citizens (46.7% nationally)
  15. 15. Immigrants in Massachusetts Top 3 countries of origin, 2011: 1. China 2. Brazil 3. Portugal Immigrants by race and ethnicity: 1. 25.1% Asian 2. 21.9% Latino 3. 15.6% Black/African American
  16. 16. Immigrants in MA Highest immigrant concentrations: 1. Chelsea 2. Malden 3. Lawrence •Adult immigrants likely to be both less educated and more highly educated than native-born. •Immigrants are overrepresented at the high and low ends of the occupational distribution. •Immigrants have a high propensity to pay taxes: 16.7% share of state income tax filers.
  17. 17. • Immigrants make up 16.3% of the labor force, more than their share of population. • More than 70% of immigrants are between 25 and 64 compared to 50% of natives. Percentage of the Population in Each Age Distribution, 2010, Foreign-Born and Native-Born Sources: America’s Advantage: A Handbook on Immigration and Economic Growth, 2015; Pew Research Center, "Statistical Portrait of the Foreign-Born Population in the United States, 2010.“ Outsized role in labor force
  18. 18. • STEM: An additional 262 jobs for the native- born are created for every 100 foreign- born STEM workers with advanced degrees from U.S. colleges. • H-2B: For every 100 H-2B visa workers, 464 jobs are created or preserved for American-born workers. • New Jersey: 2,461 H-2B visas supported more than 11,419 American jobs (2011) Outsized role in labor force Source: American Enterprise Institute and the Partnership For A New American Economy, Immigration and American Jobs, 2011
  19. 19. Source: Pew Research Center, The Next America, 2014 Workers and Social Security
  20. 20. Immigrants in Massachusetts 17.9% •Share of labor force (nationally 16.6%); 39.2% growth, 2000- 2011 67.5% •Share of immigrants who are of working-age (18-54) (nationally 59.5% aged 25-54) Top 3 occupations by industry: 1.26.5% Educational Services, and Health Care and Social Assistance 2.13.9% Professional, Scientific and Management, and Administrative and Waste Management Services 3.12.1% Manufacturing
  21. 21. Immigrants in health care Source: The Immigrant Learning Center, Inc., Immigrant Workers in the Massachusetts Health Care Industry, 2008.
  22. 22. Immigrants more likely than native-born to be self-employed. In 2010, immigrants owned 18% of all small businesses. • Share of pop.: 13.1% • Share of labor force: 15.9% Foreign-Born Percentage Share of Small-Business Owners Compared to Their Share of the U.S. Population, 2010 Source: David Dyssegaard Kallick, Immigrant Small Business Owners: A Significant and Growing Part of the Economy, 2012 Immigrant entrepreneurship
  23. 23. Immigrant entrepreneurship Source: Partnership for a New American Economy, Open For Business: How Immigrants Are Driving Small Business Creation In The United States, 2012 Immigrants start more than a quarter of businesses in high- growth sectors, including: • Health care and social assistance: 28.7% • Construction: 31.8% • Retail trade: 29.1% • Leisure and hospitality: 23.9%
  24. 24. Immigrant entrepreneurship
  25. 25. Entrepreneurship in MA
  26. 26. Entrepreneurship in MA
  27. 27. • Recent immigrants more likely than natives to have a bachelor’s or advanced degree • College attainment increased by 50%, 2000-11. • With more education, immigrants become a net benefit to government budgets. Educational attainment
  28. 28. Education in MA English proficiency: • Higher than average (55.1% speak English only or very well vs. 49.9% of foreign-born nationally) Education attainment: • Higher than average (17.5% with a graduate or professional degree vs. 11.6% of foreign-born nationally) • Immigrants hold 51% of doctorates particularly in science and innovation fields • 32.4% Nobel Prize winners from Harvard University were foreign-born
  29. 29. Education in MA 38.7% Share of STEM graduates at state's most research- intensive schools who are foreign born, 2009 49.1% Share of Engineering PhDs who were temporary or permanent residents, 2006-2010 $1 billion Creating a path to citizenship and expanding the high- skilled visa program would add more than $1 billion to MA Gross State Product in 2014.
  30. 30. • Economic and social contributions in three categories: • Neighborhood Revitalization: Neighborhood Businesses • Job creation, market expansion: Business Growth • Innovation: Life Sciences and High-Tech Immigrants as Entrepreneurs
  31. 31. Neighborhood Revitalization Source: Fiscal Policy Institute and the Americas Society/Council of the Americas Bringing Vitality to Main Street: How Immigrant Small Businesses Help Local Economies Grow, 2015. • Metro Los Angeles: 64% main street businesses immigrant-owned • Metro San Jose: 61% • Metro Washington, D.C.: 56% • Metro Miami: 54%
  32. 32. ROSA AND NISAURY TEJEDA and VICTORIA AMADOR Dominican Republic Owners: Tremendous Maid and Boston Best Commercial Cleaning, Jamaica Plain, MA Came to U.S.: 1994 Neighborhood Business
  33. 33. Job and Market Growth Source: The Immigrant Learning Center, Inc., Immigrant Entrepreneurs: Creating Jobs and Strengthening the U.S. Economy in Growing Industries, 2013.
  34. 34. HELENE & THOMAS STOHR Switzerland Founders: swissbakers, Reading & Allston, MA Food Business
  35. 35. Immigrant as innovators Source: Institute for Immigration Research at George Mason University, “The Nobel Prize: Excellence among Immigrants,” 2013 •25% life science and high-tech companies immigrant-founded •$52 billion revenue and 450,000 workers
  36. 36. Innovation AMAR SAWHNEY India Owner: Ocular Therapeutic, Bedford, MA Came to U.S.: 1987 NEW PIC NEEDED http://youtu.be/J-vU3FVXsJY?t=2m44s
  37. 37. • Diverse immigrant population in MA • Cluster at the low and high ends of the education and labor spectrum • Outsized role in labor force that expands economy, creates more jobs for native-born • Higher rate of entrepreneurship • Underserved, niche markets; high-growth industries • Revitalize neighborhoods, create jobs, innovate What have we learned?
  38. 38. Immigrant Entrepreneur Awards
  39. 39. Immigrant Workers: Who They Are and What They Contribute Thank you Download free ILC Public Education Institute reports at www.ilctr.org/promoting-immigrants For all your immigration research and data, go to www.immigrationresearch-info.org Visit the Institute for Immigration Research at GMU: www.iir.gmu.edu
  40. 40. Growing New American Businesses in MA: Community Actors and State Policy Options 2nd Biennial Forum on Engaging Immigrant Entrepreneurs & Small Business Owners Bunker Hill Community College, November 13, 2015 Jeff Gross New Americans Integration Institute (NAII) MA Immigrant & Refugee Advocacy Coalition
  41. 41. Massachusetts Immigrant & Refugee Advocacy Coalition (MIRA) Largest organization in New England advocating for the rights and opportunities of immigrants and refugees. Over 130 organizational members—incl. community-based groups, social service organizations, ethnic associations, schools, refugee resettlement agencies, health centers and hospitals, religious institutions, unions, and law firms. Advances its mission through policy analysis, legislative and administrative advocacy, organizing and leadership development, training and technical assistance, and strategic communications.
  42. 42. New Americans Integration Institute • Combines policy research and advocacy with on-the-ground integration projects and program partnerships, and communications initiatives, with the goal of creating and strengthening economic, linguistic, and civic integration pathways for immigrants and refugees statewide • Built on frameworks defined by 2009 “New Americans Agenda” • Advisory Board include representatives of state and local government agencies and private, nonprofit, and academic sectors • Five current project areas: o Immigrant Entrepreneurship o Immigrant Professional Integration o School Achievement & Access to Higher Education o Access to Early Education and Care o Messaging of Immigrant Contributions
  43. 43. Immigrant Entrepreneurship: Addressing Institutional Barriers • Undersupply of targeted services/supports • Lack of system-wide coordination • Need for stakeholder and public awareness
  44. 44. NAII Immigrant Entrepreneurship Agenda • Online Business Resource Center* • Policy-oriented briefs and fact sheets** • Promotion of “Immigrant Entrepreneurship Month” • Collaboration with community and nonprofit partners • Administrative advocacy with state and local stakeholders * http://miracoalition.org/en/integration-institute/entrepreneurship/sub-starting-a-new-business ** http://miracoalition.org/en/integration-institute/entrepreneurship/ent-facts
  45. 45. Policy Recommendations for Strengthening Immigrant Entrepreneurship • Increase the voice of immigrant entrepreneurs in decision-making • Strengthen and expand community partnerships • Improve statewide oversight and inter- agency collaboration
  46. 46. MIRA Coalition 105 Chauncy Street Suite 901 Boston, MA 02111 www.miracoalition.org Contact: Jeff Gross jgross@miracoalition.org Tel: 617.350.5480 x228
  47. 47. ¡Lanza Tu Idea! Contest to pitchContest to pitch your ideasyour ideas “Unleashing the creativity and entrepreneurial spirit in the Hispanic community” First Spanish Pitch Contest in the Nation ! https://www.youtube.com/watch?v=aO1_Y2IRxgs
  48. 48. EforAll Promo Video: Conexion Latina
  49. 49. • Monthly meetings • Planned/conducted by entrepreneurs • Increase self-confidence / “soft skills” needed for networking • Increase business activities among entrepreneurs/business owners EncuentrosEncuentros EmpresarialesEmpresariales “ Networking Meetings" (meet-ups)
  50. 50. • 60 hour training and mentoring sessions • Trainings conducted by experts • Business presentations • Cash prizes • Certificate of Completion Negocios ExitososNegocios Exitosos ““Successful Business“ TrainingSuccessful Business“ Training ProgramProgram
  51. 51. • Professional support and guidance • Qualified successful mentors • Referrals to valuable resources • Create a professional relationship MentoringMentoring
  52. 52. Would youWould you like tolike to see it insee it in ACTIONACTION??
  53. 53. Alberto Calvo President Stop & Compare Supermarkets
  54. 54. Building Better Businesses Belin Economic Justice Project & East Boston Small Business Incubator
  55. 55. The Big Picture provide personalized pro bono legal Assistance in transactional matters to Immigrant, low-income, & Minority entrepreneurs and developing small businesses in East Boston, Massachusetts
  56. 56. The Organization Lawyers’ Committee for Civil Rights and Economic Justice A non-profit, non-partisan organization formed to marshal the resources of the legal community to address racial and national origin discrimination throughout Massachusetts. For over forty years, the Lawyers’ Committee has worked to safeguard the civil, social, and economic rights of our constituencies. We handle impact litigation as well as legal actions on behalf of individuals. We also engage in community economic development, community education, and policy advocacy. Started in September 2001, EJP’s mission is to contribute to the economic growth of low-income communities by helping individuals achieve economic self-sufficiency and develop sustainable businesses. EJP provides business assistance and education to entrepreneurs who are starting or operating community businesses located in underserved areas in Greater Boston and who cannot afford legal counsel. By helping residents of these communities develop sustainable, community-based businesses that create local jobs, EJP aims to stimulate economic growth in communities that need it most. The Belin Economic Justice Project (EJP)
  57. 57. Community of Impact: Taking a closer Look at East Boston, MA The Numbers Population Figures ALL EB: 40,500+ Non-White: 63% Latino/Hispanic: 53% (Home to more than 20% of Entire Latino Population in Boston) Top 5 Countries of Immigration Mexico, El Salvador, Colombia, Brazil, Italy Spanish Speaking Households: 57% Why East Boston? Location Resident Community & Transportation Hub Growth and Redevelopment Rising Real Estate & Capital Investment Expanding Small Business Presence Growing number of DBA certificates filed by minorities Generational Distinctions Growing confidence among a younger generation of minority and low income entrepreneurs & business owners
  58. 58. Project Development Model of Small Business Development Theoretical Transactional Sustainability Ideas Concepts Initial Organization Business Plans Insurance Concerns Legal Organization: Entity Formation Employment Issues Contracts, etc. Successful opening and sustainable daily operation of a small business
  59. 59. Our Clients ManiNuts Minority owned small business which currently distributes and sells their staple product, roasted peanuts with sesame seeds, in over 25 different vendor locations across the metro and suburban Boston areaAngela’s Cafe Minority own Mexican-American restaurant in East Boston. Angela’s Cafe is a landmark restaurant that serves Puebla cuisine with a family touch.
  60. 60. Project Framework - Office Hours & Limited Representation - Educational Seminar - Clinics & Workshops
  61. 61. Open Office Hours & Limited Representation Locations ✖East Boston Neighborhood Health Center ✖East Boston Main Streets Offices Support and Education ✖The project will produce a number of written materials and provide clinics and workshops for small business owners Walk Ins Welcomed ✖Onsite Intakes, Question & Answer Limited Representation ✖Basic Transactional Issues ✖Complex Issue Prep for Partnering Firms ✖Local Client Meetings scheduled during office hours
  62. 62. Contact Information Alexa Marin Equal Justice Works Fellow Office: (617)-988-0604 amarin@lawyerscom.org
  63. 63. Karleen Porcena Program Officer Boston Local Initiatives Support Corporation (LISC)
  64. 64. Access to Capital The Forum on Engaging Immigrant Entrepreneurs & Small Business Owners By Alison Moronta, José Luis Rojas, and Rob Williams of the Community Group
  65. 65. Agenda • Introduction • Sources of Capital & Enhancements • Steps to Financing • Summary - Keys to Accessing Capital • Questions & Answers
  66. 66. Introduction – Mass Growth Capital Corp. • Quasi-Public Lender • Typically, lending into gap situations where banks will not lend, or turn around situations • Company needs to be profitable for at least 3 months • Solid business plan • Term loans up to 5 years • Lines of Credit • Guarantees on bank debt • Bonding Lines of Credit • Contract Financing
  67. 67. Overview of Lending Landscape: Big Banks • Examples: • Bank of America, Sovereign, Citibank, TD, Citizens • More rigid • Lend typically in “the box” • Do very little story lending • Very price competitive for a deal they want
  68. 68. Overview of Lending Landscape : Regional Banks • Examples: • Middlesex, Eastern, Webster, Peoples’ United, Boston Private • Not as rigid as big banks • (Assets are usually in excess of $1 billion) • Tend to stay with customers in difficult circumstances • Still very credit focused • Certain industries may fall out of favor (no lending)
  69. 69. Overview of Lending Landscape : Community Banks • Examples: • East Boston Savings, Blue Hills, Rockland Trust, Leader, Boston Trade, Cambridge Trust, Metro Credit Union, Brookline Bank • Most flexible • (Assets are usually under $1 billion) • Very relationship driven • Will forgo structure for rate • Will do story credits
  70. 70. Small Business Administration or SBA • Credit enhancement tool to help bank get a loan done • Still need positive results and cash flow • Acts as a collateral enhancement • Bank still needs to approve the credit
  71. 71. Other Sources of Capital • Alternative Community Lenders • CDFIs (Community Development Finance Institutions) • Micro-lenders ($50,000 or less) • Examples: ACCION East, Dorchester Bay EDC, SEED • Factoring • Purchase account receivable • Expensive/Quick cash • Vendors • Stretch vendors • Equity (Family, Friends & Fools)
  72. 72. Disconnect Between Banks and Business Owners • Business owners are optimists and banks are typically pessimists. • Banks look historically; owners are forward looking Owners: “I have never missed a payment” Banks: “Last year’s CF doesn’t support the borrowing” MGCC: “Are you moving in the right direction…profitability!”
  73. 73. Keys to Accessing Capital • Good operating performance, cash flow and adequate balance sheet • Financial statements and projections • Solid business plan is a must • Personal financial situation • Know your credit score and be able to explain • Be prepared to provide a personal guarantee • Identify where you best fit in the financing arena
  74. 74. Contact Information: • Alison Moronta, (617) 337-2820 amoronta@massgcc.com • José Luis Rojas, (617) 337-2815 jrojas@massgcc.com • Robert Clark Williams, (617) 337-2823 rwilliams@massgcc.com Massachusetts Growth Capital Corporation 529 Main Street, Charlestown Ma 02129 (617) 523-6262
  75. 75. Thank You! Questions and Answers