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Hispanic Entrepreneurship in New Orleans

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Hispanic Entrepreneurship in New Orleans HISPANIC ENTREPRENEURSHIP IN NEW ORLEANS Abstract This report examines the current conditions and needs of Latino entrepreneurs in New Orleans. Through surveys, interviews, testimonies, and observations from interactions with the Latino community gathered from January to August 2019, the report aims to identify key challenges for businesses and gaps with the current support available for businesses. Our findings attempt to provide guidance for community partners to design appropriate and effective business support programming for the Latino community. Table of Contents Introduction 1. Research Context: The Hispanic Community of New Orleans 2. Stakeholder Analysis: Existing Organizations and Community Partners in the Hispanic Community 3. Research Questions and Hypothesis 4. Methodology 5. Data Description 6. Analysis and Key Findings 7. Research Challenges 8. Opportunities and Recommendations Conclusions Acknowledgments to our Partners Introduction We conducted research in the Hispanic Community of the New Orleans Metropolitan Area from January to August 2019. The objective of this project is to identify the challenges, perspectives, and needs of entrepreneurs in the Latino Community. The research identifies how additional resources can support economic mobility for immigrants and Latino community members. Our research aims to analyze the current conditions of micro-businesses and entrepreneurs in the Hispanic community. This study provides statistical and qualitative data to community partners that are leading initiatives to support micro-entrepreneurs in minority groups in the city. The findings and recommendations of this study can guide local non-profit organizations and community partners in developing sustainable projects to support entrepreneurs in this community. Currently, most organizations working with entrepreneurs and micro businesses do not offer support tailored to the Hispanic community. They lack available statistical data to analyze the conditions of the community and design appropriate programs. An in-depth study was needed to understand Hispanic entrepreneurs’ unique needs, level of success and barriers to growth. Methodology Overview Data for this investigation were collected through 47 anonymous surveys of Hispanic/Latino entrepreneurs in the New Orleans Metropolitan area. Surveyors visited sites, such as the West Bank Market and events held by the Hispanic Chamber of Commerce and El Centro to survey participants. Some surveys were also conducted over the phone. Participants were invited to take part in the survey through in-person interactions at community sites or through referrals from friends, and colleagues. Surveys were available in both English and Spanish, as were consent forms. In addition to conducting surveys of entrepreneurs and business owners, the researchers also recorded detailed notes of their observations at the survey sites and interviewed several community members to develop a more in-depth and well-rounded understanding of the perspectives of Latino entrepreneurs. As a result, this report utilizes both quantitative and qualitative methods to draw conclusions and make recommendations. Summary of Findings This report does not attempt to establish generalizations about Latino entrepreneurs in New Orleans due to the complexity of that community and the limitations of the sampling methods used by the survey. Rather, through careful analysis of the survey results, the report finds several trends that exist within the target population. Our data suggest that language and business knowledge are significant barriers that limit the ability of Latino entrepreneurs in New Orleans to access capital, utilize business resources, and grow their 1 business. We also find that entrepreneurs in this community tend to be reluctant to use some resources, such as loans from banks and assistance provided by governmental and non-profit organizations. Finally, this report reveals that there are a number of organizations working with the Latino community in New Orleans, but that Latino entrepreneurs are not always aware of their services and programs, so there are opportunities for additional resources to support unmet needs. The report is organized in 8 sections as follows: The first section presents a study on the demographics and historical growth of the Hispanic community in the New Orleans Metropolitan Area, as background to the research topic. The second section includes a stakeholder analysis of organizations and community partners interacting with the Latino business community. The third section states the hypotheses and the main research questions for this report. The fourth section explains the methodology used for data collection and analysis. The fifth section presents a description of the surveyed participants and their businesses. The sixth section analyzes the survey results and highlights key findings. The seventh section discusses challenges encountered by the research team during the study. The eighth section presents recommendations and suggestions from the research team to community leaders, ending with the report conclusions. About Fund 17 In order to build a more equitable local economy, Fund 17 provides guidance and resources to entrepreneurs who are primarily low-income people of color. The mission of Fund 17 is to create economic opportunity in the 17 wards of New Orleans by providing tailored assistance to community members disconnected from traditional business and financial resources. Established in 2012 by Tulane undergraduate Haley Burns, Fund 17’s goal was to provide financial opportunity to unbanked and underbanked New Orleanians. Today, Fund 17 is a robust network of staff, professionals, entrepreneurs, students, and partners working together to create a stronger local economy where all New Orleanians can build sustainable livelihoods. Through various programs and services, Fund 17 has directly supported over 400 community entrepreneurs since becoming operational in 2015. In addition to its programmatic work, Fund 17 has led two other research projects to better understand entrepreneurship in New Orleans. As Fund 17 explored conducting programs in the Latino community, there were persistent barriers to integrating this demographic into its everyday work. Although Fund 17 has a majority Latino Board of Directors and has had multiple Spanish speakers on its team, it became clear to the organization that it needed to better understand the unique needs and perspectives of the Latino entrepreneur community. This led to Fund 17 designing this particular project where it could leverage its previous research experience, its Latino Board and staff and expertise on the New Orleans entrepreneurship ecosystem. 2 About the Research Team Our research team is composed of three members of Fund 17 affiliated to Tulane University. ● Carol Serrano Crespo was born in Cuenca, Ecuador on December 21, 1996. She grew up in Quito, Ecuador and moved to New Orleans in 2015 to attend Tulane University. During her years as an undergraduate, she gained experience in business consultancy through internships in Ecuador and in New Orleans. She fell in love with New Orleans architecture, music, food, and people. The sense of community and New Orleans’ family-oriented culture reminded her of her Ecuadorian and Latin American roots. ● Madeline Ninno is from Orlando, Florida. She recently graduated from Tulane University, in Economics and International Development with a minor in Public Policy. She has conducted research in microbusinesses in Buenos Aires, Argentina. ● Brian Contreras was born in Managua, Nicaragua and raised in Los Angeles, California. He graduated in 2019 with a major in Latin American Studies from Tulane University. ● Haley Burns is the founder of Fund 17 and an avid community researcher. After studying under geographers at Tulane University, Haley led four research projects for Fund 17 and our partners, including this final project on Hispanic Entrepreneurship. She has since obtained her Masters in Urban Planning and continues entrepreneurship research as an Extension Specialist in her home state of Alabama. 3 Section 1: Research Context:The Hispanic Community of New Orleans Historical Growth of the Hispanic Community in the 21st Century in New Orleans According to the national census of 2018, 9% of the population1 in the New Orleans Metropolitan Area2 self- identifies as Hispanic/Latino3. Jefferson Parish has the highest concentration of Hispanics, as they represent approximately 15% of the total population. Second is St. Bernard with 10%, followed by Plaquemines with 8%. All other parishes, except for St. James, have a Hispanic population that represents approximately 6% of the overall population. Figure 1 below illustrates the counties with a higher Hispanic concentration. Figure 1: Map of New Orleans Metro Area by county subdivision showing Hispanic density4 The Hispanic population in the New Orleans Metropolitan area has grown significantly in the past decade. According to the 2018 National Census, the number of Hispanics in the Metro area almost doubled from 2001 to 2018, increasing by 55,751 people. In 2001, The Hispanic population represented only four percent of the 1 U.S. Census Bureau, Population Division. Annual Estimates of the Resident Population by Sex, Race, and Hispanic Ori- gin for the United States, States, and Counties: April 1, 2010 to July 1, 2018. American FactFinder version. Distributed by The United States Census Bureau, 2019. https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml
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