Resources and Knowledge The Latino Microenterprise Development Program: delivering resources to support the thriving Latino business community.

In 2008, in the wake of the global financial crisis, Salem-area insurance agent David Reinholdt noticed a pattern among small business owners, especially among those in the Latino community. “I kept seeing the same obstacles pop up. They were running solid businesses, offering a lot of value, making money, but they were afraid to grow,” says Reinholdt.

Growth for small businesses means entering a complicated world of compliance, regulations, liability, and paperwork for which many may not be prepared.

So, in 2010, the Latino Business Alliance (LBA) was born. Jose Gonzalez, Salem City Counselor and owner of La Familia Cider, was part of the founding of the LBA and noticed many of the same issues as Reinholdt.

“The way a business you might run in Mexico or El Salvador is much different than here,” says Gonzalez. “When you’re starting, you can do everything in cash, make handshake arrangements with your customers and vendors, and bring on your family to help. Once you decide to hire or buy a company truck, you have to contend with a different way of doing things. Plus, if you do not speak any English or can only speak conversationally, a government form is nearly incomprehensible.”

“Even if you were born in the States,” says Reinholdt, “most of these things—how to carry liability insurance or set up an LLC—are not taught in school!”

How could the LBA address these unique needs? Marin Arreola of Advanced Economic Solutions, Chemeketa Community College’s Small Business Development Center, the Mid-Willamette Valley Council of Governments and SEDCOR joined with the LBA to develop and offer “culturally and linguistically appropriate” classes and one-on-one counseling to Latino businesses and entrepreneurs. These combined resources have taken the form of the Latino Microenterprise Development Program (LMDP).

“The LMDP is a high quality, professional, comprehensive, participant-centered, micro-enterprise training program to assist existing and potential Latino entrepreneurs in meeting their economic, educational, and business development needs. All program services and training are interactive and offered with a cultural and linguistic approach that is more effective for learning and comprehension,” offers Marin Arreola. “The LMDP taps the knowledge and life experience of Latino businesses, who have valuable insight and expertise in many fields of business. Latino entrepreneurs are the subject matter experts in their lives and industries, and the LMDP fills in the gaps where there may be need for business development and business planning education.”

To date, the program has helped dozens of economyboosting, local businesses; below are examples of two.

Sancho’s Tacos & Grill

Santiago Lopez began his business in 2009 out of his love for tacos.

For the first ten months, Lopez ran the business as a pop-up taco truck and struggled. “After losing money weekend after weekend and month after month, we discovered catering was the best way forward.”

Lopez joined the first cohort of the LMDP and says his eyes were opened; there was just so much he didn’t know.

“Even though I was a relatively established business, the classes taught me so much about bookkeeping, the importance of a well-written contract, and the need for good insurance,” says Lopez. “Through it, I either confirmed what I knew or filled some vital gaps in my knowledge.”

It seems that more than information was delivered through the experience. Lopez valued the community of fellow business owners he was able to form. “I still work and collaborate with my classmates, even after it ended,” says Lopez. “By running a profitable business, I can give back to the community, which is important to me. I can’t give up on my community because they didn’t give up on me!”

Soon, Lopez will leave his day job to run Sancho’s full-time. “It is a big leap,” he says. “But I think I have the tools to make it happen.”

Arrows Home Air

Fernando Lopez knew he had the skills and knowledge to be able to install, fix, and replace home air HVAC systems. To him, that was the easy part. The hard part was taking his skillset and using them within his own business.

“I knew I wanted to own my business and I had been making some quality connections at the LBA,” says Lopez.

“So, when I saw advertisements for the LMDP classes, I knew it was time to go for it. At the time, I was not ready to a launch my business, but seeing this opportunity was like a light switch and I knew it could lead to being ready.”

Lopez says the course gave him the knowledge and confidence to launch his business.

“The most impactful lessons were about marketing and branding. I didn’t know anyone who had personally started a business, so I had no idea how to name my business, how to message to my customers, or how to become engaged with the right market.”

He says he also received valuable guidance about available loan programs and how to position himself with large, traditional financial institutions. “In high school, we were put through a lot of mock job interviews to know how to present yourself to potential employers,” says Lopez. “In this case, we were taught how to communicate in the way loan officers prefer. Plus, we were given guidance for applying for loans.”

According to Lopez, the foundation for Arrows Home Air was laid during the LMDP’s first cohort, who still maintain a close connection. “Many in the first group still stay in touch. We compare notes, talk about success and find ways to work around common obstacles.”

Though Arrows Home Air launched early this year, Lopez has already had to adjust his growth projections upwards twice and is networking aggressively to prepare to serve his customers during the heat of summer.

In addition to in-kind funding from project partners, this program has largely been funded through the support of a Technical Assistance grant provided by Business Oregon. The LMDP partners are excited to announce that additional grant funding to continue this work has recently been awarded through Business Oregon’s Economic Equity Investment Program. This next funding cycle allows the addition of a new project partner, Unidos, which will expand the program work into Yamhill County.

To learn more about the Latino Microenterprise Development Program, visit latinomdp.org.