We speak the language.
The Language... of BUSINESS. For more than 60 years, the Arizona Hispanic Chamber of Commerce has helped the state's Latino-owned businesses—now an estimated 60,000 strong—grow and prosper. As an AZHCC member, your company will join forces with the fastest growing segment of the Arizona economy. The state's booming Latino market is a $35 billion annual powerhouse.
Membership also connects you to our high-profile signature events:
• Minority Business Enterprise Summit • Annual El Torneo Golf Tournament • Black & White Ball and Business Awards • DATOS: Focus on the Hispanic Market Annual Luncheon • DATOS: Tucson Annual Luncheon To learn how to join the AZHCC, contact us at 602-279-1800 or firstname.lastname@example.org.
Top photo by © Andres Rodriguez - Fotolia.com
ROSA MACÍAS CEO, MUEBLERÍA DEL SOL AZHCC MEMBER
‘I speak the language’ 255 East Osborn Road., Ste. 201 | Phoenix, Arizona 85012 | 602-279-1800 | www.AZHCC.com
HISPANIC BUSINESS ENTERPRISE REPORT PRESENTED BY
Arizona Hispanic Chamber of Commerce Phoenix MBDA Business Center September 2013
RESEARCH CONDUCTED BY:
Hispanic-owned Business Enterprises HISPANIC-OWNED BUSINESS HAVE A STRONG PRESENCE IN THE U.S. ECONOMY
Nearly 3 million Hispanic-owned businesses in the United States generate annual combined revenues of $420 billion.
Challenges The purpose of the 2012 Hispanic Business Enterprise (HBE) Study is to provide insights into the challenges, strategies, needs and resources of these Arizona businesses. The Arizona Minority Business Center and Arizona Hispanic Chamber of Commerce designed the study to be a resource for businesses, organizations, educators, government agencies and individuals who want to help Arizona HBEs succeed. A total of 380 telephone interviews were conducted with Arizona HBEs during August – October 2012. The businesses represent a range of industries, company sizes and locations throughout the state. Comparisons were made with the 2007 SRP Arizona Business Study - Focus on Minority-Owned Businesses1, when applicable. The study addressed five different topic areas – Challenges, Strategies/Successes, Business Profiles, Owner Profiles, and The Future. The following are highlights from the study.
WHAT TYPES OF CHALLENGES HAVE HISPANIC BUSINESS ENTERPRISES (HBES) FACED? Similar challenges — HBEs felt that most of the challenges they faced were common to businesses in general, and not necessarily unique or related to being minority-owned. The top responses to an open ended question about the most significant challenges or barriers they faced as a minorityowned business was “no unique challenges/same as other businesses” (23%). The specific challenges they mentioned tended to be business-related, such as “making enough money” (9%) and “securing loans/funding for the business” (9%).
Some businesses still experience specific minority-related issues — When asked specific questions about the challenges of being a minority business enterprise… • …38% felt that they have had to overcome negative perceptions of being an HBE (percent significant/somewhat of a challenge). • … 32% felt that cultural differences had an impact on their business practices (percent significant/somewhat of a challenge). • … 26% agreed with the statement that they were treated
differently by suppliers/customers because they were an HBE (percent strongly agree/agree with the statement). • … 22% disagreed with the statement that they were treated with respect when applying for loans (percent strongly disagree/disagree with the statement). A sample of HBEs’ comments about most significant challenges/barriers included:
Competing with the bigger companies is my biggest challenge. When the economy is slow, it hurts my business because people don’t have discretionary funds to pay for my services. Being a minority is my biggest challenge because I’ve been here 41 years and its funny because someone comes in they are looking for a white person to talk to and they look you over like “Huh, you’re the owner?” A review of comments throughout the survey highlighted that most just “work harder” to overcome the discrimination that surfaced in the course of their business.
SECTION I • CHALLENGES
SECTION I • CHALLENGES
SECTION I • CHALLENGES
Strategies and Successes WHAT STEPS HAVE THESE BUSINESSES TAKEN TO SUCCEED? Leveraging their minority status – HBEs have used their status as minority-owned businesses to promote, network and target their businesses.
• Network with other minority-owned businesses – 54% agree with the statement • Use minority-owned status to pursue contracts – 42% agree • Promote their MBE status – 36% agree
Increased positioning of their minority status – Significantly more HBEs were using their minority status in 2012 compared to 2007 for…
• Networking with other minority-owned businesses – 54% in 2012; 44% in 2007. • Promoting their MBE status -- 36% in 2012; 28% in 2007.
Impact of the economic downturn – The most significant accomplishments HBEs felt they achieved involved
“surviving in business” (45%), and “growing a successful business” (34%). Most recognize that just getting through the past five plus years of economic challenges was a significant milestone.
ACCOMPLISHMENTS/SUCCESS STORIES The following are examples of some HBEs’ most significant accomplishments and successes they have experienced since starting their business. (1) We survived the economic down turn. (2) We have won recent awards recognizing us for quality of work and type of business we do. (3) We have a stable staff; some have been here 10 to 20 years. (1) Having obtained contracts from other states and keeping them. (2) Overcoming this economic famine. (3) From 1999 to-date, I’m still having people employed so they could provide for their families. (1) Helping other minorities. (2) Helping the community. (3) Starting with nothing. (1) The fact that we are still in business with the economy being the way it is. (2) We have enough of a standing in the community to survive both of the economic downturns. (3) Our reputation within the industry.
SECTION II • CHALLENGES
Business Characteristics WHAT ARE THE CHARACTERISTICS OF HBEs? A key screening criterion for survey participants was that the businesses had to have at least one full-time employee. In addition, small businesses represented the largest share of number of firms who were surveyed. The profile characteristics tended to reflect smaller size businesses.
Companies surviving the economic downturn - A profile of the typical HBE included: •
Almost one-third (34%) were sole proprietorships; one quarter (23%) were S Corporations.
Median revenue in 2011 was $263,000, which was slightly, but not significantly higher, than $226,000 in 2007.
Median number of employees was 4 people.
Median age of the company was 14 years old, which was significantly higher than in 2007 (9 years).
Almost two-thirds were family-owned (62%)
HBEs conducted business both nationally and internationally – One-third (36%) conducted business throughout the United States outside of Arizona; 14% conducted business internationally. This geographic span of customers was comparable to the 2007 study.
HISPANIC BUSINESS ENTERPRISE 2007
Non for Profit
Conducts business internationally
Conducts business nationally
SAMPLE SIZE OWNERSHIP
LLC MEDIAN REVENUE (2006 AND 2011) MEDIAN NUMBER OF EMPLOYEES MEDIAN AGE OF COMPANY BUSINESS DESCRIPTIONS
Bold figures are significantly different between 2007 and 2012.
Owner Characteristics WHO OWNS THESE HISPANIC BUSINESS ENTERPRISES? Characteristics of the owners of HBEs included: •
More than one-third had college degrees (39%).
Median age was 51 years old.
Median income was $69,500.
Compared to the general population - HBE owners were 50% more likely to have a college degree and had 50% higher annual income compared to the state’s median household income *. •
2009 Arizona education attained – 26% college degree 2 compared to 39% among owners.
2011 Arizona median household income - $46, 709 3 compared to the $69,500 among owners.
* NOTE: The income for HBE owners is not a direct comparison with the overall household figures because the state’s 2011 median income accounts for multiple wage earners in the home compared to the HBE owner’s individual income. The difference of HBEs household income would be even greater than Arizona household income. Impact from the economic slowdown – Demographics of the HBE owners generally did not change significantly from 2007 to 2012.
HISPANIC BUSINESS ENTERPRISE
DEMOGRAPHICS Median Age Percentage with college degree or more Education Median Household Income CULTURE/LANGUAGE Born in U.S. No significant differences between 2007 and 2012.
The Future WHAT DO THESE OWNERS THINK ABOUT THE FUTURE OF THEIR BUSINESS? Improving economic future - Most HBEs felt that their financial situation will improve in the next 12 months (63%). Only 10% anticipated that their situation will become worse. As a point of comparison, optimism was down compared to before the recession (73% felt their financial situation would improve in 2007). Expansion plans â€“ Almost two-thirds (62%) planned on expanding their business during the next five years. Only 5% planned to shrink their business.
SECTION V • THE FUTURE
CONCLUSIONS & END NOTES
Conclusions 1. Race-related challenges still exist - While most companies/organizations surveyed focus on the dayto-day challenges of staying in business, approximately one-third of HBEs indicated having to overcome negative perceptions related to being a minority-owned business. A review of comments throughout the survey highlighted that most just “work harder” to overcome the discrimination that surfaced in the course of their business. One surprising note is that only three companies out of the 380 surveyed mentioned SB 1070 as being a challenge to them. It should be noted that HBEs were not directly asked a question about SB1070. The three responses came from the open ended question asking about the challenges they face. 2. Increasing visibility of their minority status - HBEs have leveraged their minority status as a strategy to build successful businesses and as a tool to survive the economic downturn. They network with other minority businesses, they use their status to pursue contracts, and they promote their MBE status to potential customers. 3. Opportunities to help HBEs - HBEs biggest needs focus on the basics of building a business during this economic recovery:
• Marketing/Sales – One of the top challenges they mentioned was “making enough money” – i.e., how to market and build their sales.
• Capital – Some businesses listed securing loans was their top challenge.
• Growth – Two out of three HBEs plan on expanding their business during the next five years. They will need help with staffing, cash flow, facilities, and other growth-related infrastructure needs in order to build their organizations.
Salt River Project, 2007 SRP Arizona Business Study — Focus on Minority-Owned Businesses, 2007.
United States Census Bureau, Education Attained by State, The 2012 Statistical Abstract, The National Data Book, 2012, http://www.census.gov/compendia/statab/cats/education/educational_attainment.html.
Amanda Noss, “U.S, Census Bureau, Household Income for States 2010 and 2011,” American Community Survey Briefs, United States Census Bureau, September 2012.
BROWN AND WHITE, INC.
OWNER: Pete Granillo WHO IS BROWN AND WHITE, INC.? Pete Granillo started his business in 1981 as a fence and guard rail company. The construction company he was working with at the time decided to shut down their Tucson operation and asked Pete to finish their existing contracts. Peteâ€™s experience as an assistant manager in the construction industry gave him enough of a background to step out on his own in 1981 and incorporated Brown and White in 1983. Over the past 30 plus years, the company has grown from a small fence and guard rail company to a full-service, general contractor that has worked in Arizona, Texas, and New Mexico.
Photo by Joe Ramirez, Area520
BROWN AND WHITE, INC. PETE GRANILLO 501 E. 30th Street, Tucson, AZ 85713  624.9860 brownandwhiteinc.com email@example.com 30 years in business
BROWN AND WHITE, INC. —PETE GRANILLO
WHAT HAVE BEEN YOUR BIGGEST CHALLENGES AS A MINORI- WHAT HAVE BEEN YOUR BIGGEST SUCCESSES AS A TY-OWNED BUSINESS? COMPANY? The economic downturn hit the company hard. As the size and
I think that the company’s biggest success has been helping
number of available construction contracts began to shrink, we
employees grow over the past 30 years.
had to cut back in order to survive. The biggest challenge
number of long-term employees with tenures ranging from 15 –
we faced was always having to “feed the monster” (i.e. the
30 years. The company has helped employees go to school,
expenses related to maintaining a large organization) and took
buy houses, and weather difficult times. These are also the same
a number of steps to downsize the company, cut expenses,
employees whose commitment to organization has helped the
and be more selective in the contracts we pursued. These
company succeed over the years.
We have a
changes made a positive impact over the past five years and helped us return back to the previous growth mode. Another significant challenge we have faced is the negative perceptions of being a minority-owned business. I have had to battle the perceptions that the only reason we won a particular contract was because we are a minority-owned business. I have to prove to customers that Brown and White is a well-run company that does good work and also happens to be a minority-owned business. Bidding requirements on government contracts have opened doors, but we still have to work twice as hard to prove that we earned the business. Customers would not come back to Brown and White if we only relied on our MBE status. We are only as good as our
WHAT LESSONS HAVE YOU LEARNED SINCE STARTING THIS COMPANY? A few key lessons I have learned over the past 30 years running Brown and White include: Starting a new business: Learn as much as you can in the business you’ve chosen to begin. Work in the industry and learn the methods. After a few years, step out and create your own methods. Capital sources: If you are just getting started, try to fund the business as much as you can by yourself. It is very difficult to find banks and bonding companies who are willing to support startups.
HOW HAVE YOU OVERCOME THE CHALLENGES OF BEING MINORITY-OWNED BUSINESS?
Being a minority – There are significant advantages being a minority business person. I speak two languages. I can navigate in two different cultures. I have learned to survive in one culture and make money in the other. Being a minority has been a blessing for me.
I have found that the key to overcoming the negative stigmas
work and convinced the customer to use Brown and White in
Staying involved/Giving back – Brown and White sponsored the first MWBE workshops in Tucson. I have served on a number of local and national boards representing minority businesses. I take the philosophy that everyone benefits if we all share our experiences and help others find solutions to their business challenges. We can show these businesses how to get there. They have
to put in the work to be successful.
has been to build relationships, especially with those who initially have been resistant to working with our company. Over the years, we have reached out to these companies until they finally gave Brown and White an opportunity. Once the door was open, we made sure that our company did quality
¡GREAT IMPACT!, INC
OWNER: Teresa Ornelas
WHAT IS ¡GREAT IMPACT!, INC.? ¡Great Impact!, Inc. provides products and services to help organizations meet their marketing results through promotional products. Some of these promotional product solutions include adding logos and messaging to marketing materials, such as clothing items, awards, mugs, food products, and golf items. Services we provide include order fulfillment, inventory management, and online company store programs. We are a family-run business with five employees and have certifications as both a Woman Business Enterprise and a Minority Business Enterprise.
WHAT IS THE HISTORY OF THE COMPANY? My professional background includes thirteen years in the corporate world, as a business territory manager in the tech industry. I took a break to be a stay-at-home mother, but as my kids began to grow, I decided to start a home-based business. I hoped to combine the best of my professional and personal worlds. The business began in early 1999 as a reflection of my passion for gift-giving and my background in marketing. As I traveled to gourmet food shows across the United States, I noticed a gap between the products available and a need to provide personalized messaging to customers. The business initially focused on the use of pre-packaged gourmet foods as marketing tools (e.g., gourmet cookies with logos and messages). Early on, we branched into the ad specialty business when our customers began asking if we could also provide customization on items such as mugs and pens. Much of our diversification is based on our desire to satisfy clients’ needs to the highest possible level. As customers asked about new products and services, we responded and kept growing to make them available.
¡GREAT IMPACT!, INC. TERESA ORNELAS  777.2226 124 W. Orion St. #F8, Tempe, Az 85283 Photo by James e. Garcia, AZHCC
¡GREAT IMPACT!, INC. —TERESA ORNELAS
The company soon outgrew our home and required that we
a certification from Women’s Business Enterprise National
move into commercial space. In late 2000, we moved the
Council (WBENC) which has connected me to a broader range
business from my home and into our current location.
of business executives and even more mentoring opportunities.
HOW DID THE ECONOMIC DOWNTURN AFFECT ¡GREAT WHAT HAVE BEEN YOUR BIGGEST CHALLENGES AS A MINORITY/WOMAN-OWNED BUSINESS? IMPACT!, INC.? We were hit hard by the recession in 2008. At one point, we
The challenges we face are common to all businesses.
lost our top six customers overnight. Fortunately, we had metrics
I really have not had many negative experiences being a
in place to help us determine how much time we had to find
minority and Woman-Owned business. I can only think of the
solutions and develop a plan.
benefits associated with being a part of the local Hispanic
We survived the downturn
primarily through the relationships and trust we had built with
community and network of woman business organizations.
our suppliers and customers. We set up payment plans with our suppliers and provided similar options with our customers which helped stabilize our cash flow. We felt surviving the recession was a defining moment for our company, because we now
WHAT HAS BEEN YOUR BIGGEST SUCCESS WITH YOUR BUSINESS?
know which companies believe in ¡Great Impact!, Inc.,
Being happy to go to work and build the business we can all
have similar values, and will stand with us during tough times.
be proud of have been my greatest successes. I also feel that I have been able to build a positive culture for the business.
HOW HAS BEING A MINORITY/WOMAN AFFECTED HOW YOU RUN YOUR BUSINESS? WHAT ADVICE WOULD YOU GIVE TO A LATINA WANTING TO START A BUSINESS? I am a third generation Hispanic and have found the Latino community to be very supportive of my business. The Hispanic culture is naturally very warm and social, and the community
1. Know what you want to build – Spend time
has been a great resource to me when I needed advice or
developing your business plan so that you know
My involvement in the APS Academy for the
what type of business you want to build and why
Advancement of Small, Minority and Women-Owned Enterprise
you want to build it. It is easy to lose sight of this
(AAAME) program taught me how to build my company culture based on core values. Arizona Hispanic Chamber of Commerce (AZHCC) and Grand Canyon Minority Supplier Development Council (GCMSDC) have both helped me develop a strong network of contacts in the business community. In the same way, my involvement in National Association of
over time. 2. Values are extremely important – Knowing your values will help guide you when looking for new customers, employees and suppliers.
Women Business Owners (NAWBO) especially helped me as
3. Develop a reporting system to measure your success
I was beginning my business. I was able to build a strong
– Be disciplined to review leading and lagging
network of women business owners who have been a good
indicator measures every week. And be ready to
resource to me. ¡Great Impact, Inc. has also recently received
make needed changes to insure your success.
NATUROPHATHIC VITALITY WELLNESS CENTER
OWNER: Dr. Judy Hinojos-Sinks WHAT IS NATUROPATHIC VITALITY WELLNESS CENTER? Naturopathic Vitality Wellness Center is a clinic that integrates holistic medicine with traditional medicine practices to treat patients through the use of natural therapies and modalities. We provide a wide range of services, including wellness check-ups for the entire family, lab work services, well-women exams and physicals for men, women and children. We offer numerous therapies including: acupuncture, hydrotherapy, intravenous therapy (such as vitamin C therapy), as well as B-12, B-6 and weight loss injections. We use homeopathic remedies to bring the body back to balance. We also work with patients on nutrition and diet and offer services for detox/cleansing and natural hormonal balancing. We take great pride in treating the whole person naturally and heal the person with a blend of powerful tools and therapies with the use of homeopathy, IV, injections, nutritional supplementation and other traditional and holistic modalities. Focusing on womenâ€™s medicine we find the root problems and start the healing process. Some common areas we have phenomenal success include; hormone balancing, thyroid, fertility, adrenal, energy, weight loss and stress management.
WHAT IS THE HISTORY OF THE COMPANY?
In 2008, I graduated from the Southwest College of Naturopathic Medicine in Tempe with Honors and began working for a physician in the Valley where I started treating my own patients. After about a year and a half, I opened my own practice. It was always a dream of mine to have my own holistic wellness center where I could serve the community by bringing together all the amazing knowledge and natural healing I had learned through my education and life experiences. We opened the clinic three years ago and had 200 patients during the first year. We have grown to over 1,000 patients by our third year.
Photo by James e. Garcia, AZHCC
My exposure to Naturopathic Medicine began in my native country, Ecuador, where holistic medicine is more prominent. I came to the United States when I was 18 to go to college at ASU and received my undergraduate in Psychology and Women Studies graduating with Honors. My goal was to be in a field where I could serve others and the community and studying psychology seemed to be the best choice. After graduating from ASU, I started pursuing my interest in Naturopathic Medicine and decided it was a perfect match to integrate treating the mind as well as the whole person and bringing people back to balance through natural modalities.
NATUROPATHIC VITALITY WELLNESS CENTER DR. JUDY HINOJOSA-SINKS 2165 E. Warner Rd. Suite 104 Tempe, AZ 85284
NATUROPATHIC VITALITY WELLNESS CENTER —DR. JUDY HINOJOSA-SINKS
TO WHAT DO YOU ATTRIBUTE YOUR SUCCESS SO FAR? I believe that it is my life’s work and purpose to give hope and healing to others. I truly live my life’s purpose and it fuels the success that we have been blessed with. Closely allied with my purpose is my passion to serve others. I have found my success has come from serving the community and not from being driven by financial motives. My purpose has been to share with everyone the amazing power Naturopathic Medicine has to offer and provide my patients with effective and transforming ways to heal the body. The other driving strength for success has been the healing results of my patients, watching one go from hurting to vibrant health and then being able to share the experience with them boosts my passion to new heights. That has been very inspiring.
WHAT HAVE BEEN THE BIGGEST CHALLENGES YOUR BUSINESS HAS FACED? In the beginning, one of my biggest challenges was finding the right people to represent my business. I wanted my employees to share the same passion and philosophies so that it translated when we were treating our patients. I believe part of our success and growth has been due to creating a compatible team and teaching the employees how to better serve our patients.
HOW HAS BEING A MINORITY/WOMAN AFFECTED HOW YOU RUN YOUR BUSINESS? I have seen more opportunities than challenges as a Latina business owner. I think some of my greatest challenges as a Hispanic woman came early on, before I started my business. When I moved to this country, my knowledge of English was very limited, so learning the language and understanding the culture were challenging. In terms of being a woman and running my own business, I find some of the challenges come when I have to work with other providers, businesses, and doctors who are often men. The challenges have been learning how to talk in their language and showing strong leadership, which is oftentimes associated as a male characteristic. I try to balance between communicating strong leadership to my employees/members of the community and expressing compassion, caring and kindness to my patients.
WHAT HAVE BEEN YOUR BIGGEST SUCCESSES AS A COMPANY? Every day is a successful one when my doors are open. I enjoy being able to run my own business and I am proud that the company has endured over 15 years. I really like what
I do and I enjoy it, so I get up and come to work every day having fun, doing what I need to do…I don’t look at it as a challenge.
WHAT ADVICE WOULD YOU GIVE TO SOMEONE STARTING UP A BUSINESS? I would advise those starting a new business to save money, you need enough money to last for at least a year, and to be vigilant about cash flow. I would suggest trying to get your customers to pay in a timely manner, which will allow you to have enough cash flow to pay your employees and other business expenses. I would also recommend having an in-depth knowledge of your customer base. Have a good clear understanding about who your customers are and who you are serving….know how to provide that service in a timely manner and always be 100% professional.
WHAT HAS BEEN YOUR BIGGEST SUCCESS WITH YOUR BUSINESS? My biggest success and achievements have come from seeing the results of the wellness care we provide. For example, we do a lot of fertility care at the clinic and we have seen some amazing results from patients who have been trying to get pregnant for years. Some of my patients had seen numerous practitioners prior to visiting us and then, with the right treatment and some powerful therapies (such as acupuncture, homeopathy, adjusting their diet, balancing their hormones naturally and providing natural supplements), we see successful pregnancies. I think it is these stories that have been the true successes for our business. Success stories translate into more referrals, which in turn grow our business.
WHAT ADVICE WOULD YOU GIVE TO A LATINA WANTING TO START A BUSINESS? 1. Establish boundaries — There are many challenges when starting a business. Try to establish some level of boundaries between your business and personal life so that you do not compromise your own wellness and health. 2. Surround yourself with the right people — Networking is very important when starting your own business and there are many organizations who are interested in helping provide opportunities to meet the right people. Having a good family support system is also important in achieving success. 3. Don’t give up — Focus on your passion and the hard times will eventually become easier. Your desire and commitment will help you make it happen.
The purpose of the 2012 Hispanic Business Enterprise (HBE) Study is to provide insights into the challenges, strategies, needs and resources...
Published on Jan 18, 2014
The purpose of the 2012 Hispanic Business Enterprise (HBE) Study is to provide insights into the challenges, strategies, needs and resources...