1.
The 2nd
Biennial Forum on
Engaging Immigrant
Entrepreneurs &
Small Business Owners
November 13, 2015

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.
We need to know:
 Why they are in business
 What are their development paths
 What are the enablers and barriers
for success

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.
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.
Denzil Mohammed
Public Education Institute Director
Immigrant Learning Center

7.
Immigrant Entrepreneurs in MA

8.
Immigrant Entrepreneurs in MA
Statistical Profile, Characteristics, Contributions
Denzil Mohammed
Director, Public Education Institute,
The Immigrant Learning Center, Inc.,
Malden, MA

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.
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.
Institute for Immigration Research
Institute for Immigration Research at GMU:
www.iir.gmu.edu

12.
Immigration Quiz
Immigrants comprise what share of the
Massachusetts population?

13.
Which of these companies was not founded by
an immigrant?
Immigration Quiz

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.
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.
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.
• 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.
• 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.
Source: Pew Research Center, The Next America, 2014
Workers and Social Security

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.
Immigrants in health care
Source: The Immigrant Learning Center, Inc., Immigrant Workers
in the Massachusetts Health Care Industry, 2008.

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.
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.
Immigrant entrepreneurship

25.
Entrepreneurship in MA

26.
Entrepreneurship in MA

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.
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.
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.
• 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.
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.
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.
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.
HELENE &
THOMAS STOHR
Switzerland
Founders:
swissbakers,
Reading & Allston, MA
Food Business

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.
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.
• 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.
Immigrant Entrepreneur Awards

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.
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.
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.
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.
Immigrant Entrepreneurship:
Addressing Institutional Barriers
• Undersupply of
targeted
services/supports
• Lack of system-wide
coordination
• Need for stakeholder
and public
awareness

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.
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.
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.
¡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.
EforAll Promo Video: Conexion
Latina

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.
• 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.
• Professional support
and guidance
• Qualified successful
mentors
• Referrals to
valuable resources
• Create a
professional
relationship
MentoringMentoring

52.
Would youWould you
like tolike to
see it insee it in
ACTIONACTION??

53.
Alberto Calvo
President
Stop & Compare
Supermarkets

54.
Building Better
Businesses
Belin Economic Justice Project &
East Boston Small Business Incubator

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.
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.
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.
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.
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.
Project
Framework
- Office Hours & Limited
Representation
- Educational Seminar
- Clinics & Workshops

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.
Contact Information
Alexa Marin
Equal Justice Works Fellow
Office: (617)-988-0604
amarin@lawyerscom.org

63.
Karleen Porcena
Program Officer
Boston Local Initiatives
Support Corporation (LISC)

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.
Agenda
• Introduction
• Sources of Capital & Enhancements
• Steps to Financing
• Summary - Keys to Accessing Capital
• Questions & Answers

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.
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.
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.
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.
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.
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.
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.
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.
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.
Thank You!
Questions and Answers