Saturday »Next Story» News Local News Opinion Business Sports Family Wheels The Last Week Weekly Sections Subscribe to the UT JOHN GIBBINS / Union-Tribune David Salazar at work in Culturati Research's Mission Valley office. The firm founded two years ago earns $2 million a year providing Procter & Gamble, Nestle and other companies with marketing data on the booming Hispanic marketplace. Weather | Traffic | Surf | Maps | Webcam Thursday, Apr. 28, 2016 Hispanics set the pace in business ownership Strong growth in a field where failure is more likely than not By Frank Green STAFF WRITER May 13, 2006 David Salazar, a first-generation Colombian-American, is one of a growing number of Hispanics taking their places in the small-business ranks. Culturati Research, a marketing-research firm he co-founded in San Diego two years ago, earns $2 million a year providing Procter & Gamble, Nestle and other companies with marketing data on the booming Hispanic marketplace. “There are so many business opportunities out there. . . . You just have to get your hands dirty,” said Salazar, 29. The ranks of Hispanic-owned businesses in the United States grew 43 percent, to 1.6 million, from 1997 to 2002 – quadruple the growth of all companies. The companies generated about $222 billion in revenue, up 19 percent, according to a new report on Hispanic businesses from the U.S. Census Bureau. The rate of growth in Hispanic businesses exceeds the growth rate in the country's Hispanic population, which increased 23 percent to 37 million. Marketing experts said that many Hispanic-owned companies benefit from wider social and cultural acceptance in the overall marketplace. Hispanics set the pace in business ownership | The San Diego Union-Tribune http://www.sandiegouniontribune.com/uniontrib/20060513/news_1b13hi... 1 of 3 4/28/2016 3:21 PM
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JOHN GIBBINS / Union-Tribune
David Salazar at work in Culturati Research's Mission
Valley office. The firm founded two years ago earns $2
million a year providing Procter & Gamble, Nestle and
other companies with marketing data on the booming
Hispanic marketplace.
Weather | Traffic | Surf | Maps | Webcam
Thursday, Apr. 28, 2016
Hispanics set the pace in businessownership
Strong growth in a field where failure is more likely thannot
By Frank Green
STAFF WRITER
May 13, 2006
David Salazar, a first-generation Colombian-American, is one of agrowing number of Hispanics taking their places in the small-businessranks.
Culturati Research, amarketing-research firmhe co-founded in SanDiego two years ago,earns $2 million a yearproviding Procter &Gamble, Nestle and othercompanies withmarketing data on thebooming Hispanicmarketplace.
“There are so manybusiness opportunitiesout there. . . . You justhave to get your handsdirty,” said Salazar, 29.
The ranks ofHispanic-owned businesses in the United States grew 43 percent, to 1.6million, from 1997 to 2002 – quadruple the growth of all companies. Thecompanies generated about $222 billion in revenue, up 19 percent,according to a new report on Hispanic businesses from the U.S. CensusBureau.
The rate of growth in Hispanic businesses exceeds the growth rate in thecountry's Hispanic population, which increased 23 percent to 37 million.
Marketing experts said that many Hispanic-owned companies benefitfrom wider social and cultural acceptance in the overall marketplace.
Hispanics set the pace in business ownership | The San Diego Union-Tribune http://www.sandiegouniontribune.com/uniontrib/20060513/news_1b13hi...
1 of 3 4/28/2016 3:21 PM
“Hispanics are rapidly assimilating into mainstream U.S. culture. . . .They comprise the fastest-growing market in the U.S.,” said GeorgeBelch, chairman of the marketing department at San Diego StateUniversity.
In California, the number of Hispanic-owned businesses grew 27percent, to 427,800, from 1997 to 2002, according to the new report.
Comparable population growth figures are not available, but the state'sHispanic population grew 43 percent in the 1990s, according to the SanDiego County Chamber of Commerce.
In San Diego County – where starting a business is relatively expensive –Hispanic-controlled firms grew 17 percent, to 33,000 companies, during1997 to 2002, the Census Bureau said.
The country's Hispanic population grew 47 percent, to 751,000, duringthe '90s, according to the Hispanic Chamber of Commerce.
“The cost of living is very high here, and many Hispanic entrepreneursgo to Los Angeles,” said Ruben Garcia, district director of the U.S. SmallBusiness Administration.
The majority of Hispanic companies in the United States overall and inSan Diego County are in construction or service businesses, such asrepair and maintenance, the Census Bureau said in its report.
Diana Zuniga, for instance, opened her one-person insurance companyin Escondido two years ago, using $70,000 she'd saved from trainingagents for another firm. The company now has about 200 clients.
About 87 percent of Hispanic-owned companies – both nationally andlocally – are one-person operations.
Despite that, the county's Hispanic-owned firms did $3.5 billion in salesin 2002.
Language barriers and lack of access to financing and education werecited as the primary hurdles facing would-be Hispanic entrepreneurs in arecently issued study on Mexican-American entrepreneurship.
The study, co-written by economics professor Christopher Woodruff atUC San Diego, found that the median net worths of native-born andforeign-born Mexican Americans were $28,690 and $6,276, respectively,compared with $76,685 for white non-Hispanics.
The disparity in educational levels was equally striking: Non-Hispanicwhites average 13.7 years of schooling, compared with 12.6 years forU.S.-born Hispanics of Mexican descent and nine years forMexican-born immigrants.
Woodruff, director of the Center for U.S.-Mexican Studies in San Diego,said one way to bring more Hispanics into business ownership is toprovide greater access to business loans and other financial support.
“The Hispanic population, in general, uses the financial system at lowerrates,” he noted.
Hispanic entrepreneurs who have trouble taking their small operationsto the next level typically face the same problems as any business owner,said the SBA's Garcia.
Hispanics set the pace in business ownership | The San Diego Union-Tribune http://www.sandiegouniontribune.com/uniontrib/20060513/news_1b13hi...
2 of 3 4/28/2016 3:21 PM
“They're underprivileged, in the wrong industry or not qualified,” saidGarcia, noting that 60 percent of all small businesses fail in the first year.
Moreover, 50 percent of Hispanics prefer doing business in Spanish,limiting their marketing potential, he added.
Zuniga agreed that some Hispanic businesspeople have troublemarketing to other cultures partly because of language barriers. “Theyare in their comfort zone in their own culture,” she said.
Garcia said his agency works with about 80 loan and venture capitalcompanies to assist Hispanic-owned and other small businesses.
Area nonprofits, such as Accion San Diego, also provide loans to micro-enterprises that are not big enough to land assistance from banks andloan companies, he said.
“The resources are there if people want them,” Garcia said.
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