What is the Economic Impact of Hispanic-Owned Businesses in NW Arkansas?

Seeing signs recently in Fayetteville about a Korean restaurant preparing to open triggered thoughts of the many small businesses in NW Arkansas owned and operated by immigrants.

Minority-owned businesses are nothing new, of course. They have been the backbone of America since immigrants first came to America. As the immigrant population grows throughout the U.S., so does the number of businesses owned by minorities.

According to a new study by the Center for an Urban Future, a New York City think tank, immigrants have been more likely to be self-employed than native-born residents in every U.S. census since 1880. Further, immigrant entrepreneurs have been an overlooked and little-understood piece of cities' economies. The research shows that more businesses are being started by foreign-born vs. native-born entrepreneurs in major cities, driving growth in sectors from food manufacturing to health care.

NW Arkansas mirrors the nationwide trend.

Benton County’s overall population grew by 22% in the five-year period 2000 to 2005. At the same time, the Hispanic population grew 78%, from slightly over 13,000 to nearly 24,000. Hispanic population in Washington County showed a slightly smaller percentage of increase, 73%, while the overall population increase in Washington County was 14%. Translating that to numbers means the Hispanic population grew from approximately 13,000 to more than 22,000. Certainly no other ethnic group comes close to such an increase in our area.

So, it’s no surprise to see to see more and more signs in Spanish while traveling in the two counties. There are restaurants, grocery stores, auto sales and repair shops, clothing stores, daycare centers, real estate agents, notaries public, Spanish-speaking radio stations and newspapers, and more.

For many immigrants, entrepreneurship is the best way to rise above a menial, low-paying. Immigrants are known for their willingness to work hard to obtain a brighter future for themselves and their children.

However, they face many significant roadblocks, notably the language barrier and lack of available business loans. Another problem stems from the perception of banks and chambers of commerce the immigrants brought with them from their native lands.

It sometimes takes years for immigrants to feel secure enough to divulge business and personal information to banks. Many immigrants do not comprehend what a banker means when asked about their “business plan.” Their plan is to join with family members and work long, hard hours.

There is no doubt that minority-owned businesses contribute greatly to our local economy but the amount of the impact is difficult to determine. No one in NW Arkansas has made a thorough study. Some area chambers of commerce are reaching out to the Hispanic community, as are some banks. However, a comprehensive study is lacking.

The cost of such a study is the biggest obstacle. The Skyline Report, an economic summary of the real estate market in NW Arkansas which I frequently mention in my blog, is prepared for Arvest Bank by the Center for Business and Economic Research of the Sam Walton School of Business at the University of Arkansas. I’ve read estimates that the Skyline Report costs $250,000 annually. While certainly expensive, this comprehensive analysis is extremely useful for measuring the real estate market.

I believe the economic impact of Hispanic-owned businesses is being overlooked at best and ignored at worst. It is time for a thorough study of their importance in NW Arkansas.

The Hispanic population is the largest minority group in NW Arkansas and the U.S. There is no sense in burying our heads in the sand any longer; Hispanics, as well as other ethnic groups, are here to stay.

Perhaps one of the banks could see the benefits of such a study or area chambers of commerce could join together to fund an analysis. It needs to be done.

For more information:

http://www.nwanews.com/story.php?paper=adg§ion=Special&storyid=180945

http://www.hispanicbusiness.com/news/newsbyid.asp?id=55217

http://www.boston.com/news/local/massachusetts/articles/2006/09/17/
immigrant_businesses_transform_us_neighborhoods/?rss_id=Boston.com
+--+Massachusetts+news (copy and paste this entire link to read the article)

Arkansas’ 1st Bilingual Post Office Opens in Springdale

According to newspaper estimates, the Hispanic population of Washington County increased 73% from 2000 to 2005, bringing the total to more than 22,000 people. During the same time frame Benton County’s Hispanic population increased 78%, to approximately 24,000 people.

With those figures in mind, it is good news that a bilingual (English/Spanish) U.S. Post Office is now open in Springdale. It’s located in the southeast section of the city, in a tiny strip mall at the intersection of Hwy. 265 and Electric Avenue.

Post Office officials say this is a first for Arkansas, but will definitely not be the last. Several more bilingual post offices are on the horizon for Arkansas.

Long lines at existing post offices testify to the need for more locations. In addition to providing a much-needed service to our Spanish-speaking neighbors, the new Post Office also serves as a convenient place for everyone to purchase stamps and mail packages. Located within a retail business, it is open all day, every day, Monday through Saturday. How’s that for convenience?

For more information:
http://www.nwanews.com/story.php?paper=adg§ion=Editorial&storyid=179794

Immigration Reform Protests and NW Arkansas

The massive demonstrations by Hispanics throughout the nation on the issue of immigration reform are a demonstration that this growing segment of the population may finally be coming of age politically. There have been immigration reform bills in the past, but the public outpouring by the Hispanic community has never been so great. There were no protests here in NW Arkansas, but the effect of the protests may eventually be felt here.

Immigration of people from other nations and cultures are what has made the US a great and dynamic nation, and although laws are necessary, I don't think they should be racist and restrictive. As the granddaughter of immigrants from Finland and Sweden, I have experienced first hand how people from other nations make our own nation stronger. The strong work ethic and emphasis on education made the northeastern Minnesota area where I grew up a dynamic community of many cultures where education was prized. Our public schools there were far superior to those in other parts of the state until the mining boom there dissipated in the past 25 years or so. The desire to assimilate spurred the new citizens to raise their children to surpass their own educational and professional achievements and contribute to their communities in a positive manner. The original arrivals could not speak English when they arrived and most worked at menial jobs. Their children all spoke English, worked at better jobs than their parents had, and many encouraged their children, in turn, to obtain college educations to become professionals.

In the past, various ethnic groups have provided massive migrations to our shores. Many of these groups were discriminated against when they first arrived, but now they have become part of the fabric of our nation. The Irish and Italians who arrived in the late 19th and early 20th century are typical of this pattern. Many of the Irish became policemen in the Eastern cities where they settled. And in NW Arkansas the Italians who settled here have created traditions which continue to enrich the area culture and economy (for example, the Tontitown Grape Festival, restaurants, and home-grown industries), even as their children and grandchildren have assimilated and prospered.

For northwest Arkansas, the continued development of the area depends on immigrants. Our area is in a new initial phase of the typical immigration pattern for newly arrived groups. There are increasing numbers of Asians and Pacific Islanders as well as Hispanics moving to the area. Many of the latter are first generation arrivals who don't speak much English. Some are illegal. But their children all attend our public schools and enrich the cultural environment, enhancing the world view of the native Arkansan children. With time these families will assimilate, just as previous generations have done. And our area will be richer for their presence.

The economy of our area also depends on these new arrivals. Much of the new construction of area housing, as well as factory jobs, is made possible by these new arrivals. Many builders now prefer Hispanic crews--they work hard and they take pride in their work, creating beautiful homes for residents and others who are relocating here because of Wal-mart and other major businesses in the area. Many of these new immigrants also work in jobs--for example, in the poultry plants--that local people do not want. They pay taxes and pay into the social security system, helping to assure that when baby boomers and even their children retire, there will be money for the system to be able to pay social security benefits. Without them, our area would not be the driving economic engine that it is.

For additional information, see also:
http://immigration.about.com/b/a/255666.htm
http://www.msnbc.msn.com/id/10704013
http://www.cnn.com/2006/POLITICS/03/27/immigration.rallies.ap/
http://www.npr.org/templates/story/story.php?storyId=5308394&ft=1&f=1001
http://www.usimmigrationsupport.org/
http://teacher.scholastic.com/scholasticnews/news/article_thu.asp

Hispanic Parents Weigh in on New Rogers High School

The times, they are a-changing. Spanish-speaking parents gathered February 12 at St. Vincent de Paul Catholic Church for a question-and-answer session about a second high school scheduled to open in Rogers in August 2008. The meeting was the fifth held by the Rogers school district to gather input from the community and the first to be delivered entirely in Spanish.

The information meeting was scheduled to present to Hispanic parents the latest developments on facility plans for the new high school. Parents viewed a computer-generated model of what the new school will look like. According to an information sheet distributed at the meeting, the campus will grow from about 190,000 square feet to 325,000 square feet.

Feedback from the parents will be given to committees for consideration. The various committees will then report to the School Board, which will make final decisions about the new school.

To my knowledge, this is the first meeting of this type conducted totally in Spanish, and other school systems and public entities should follow suit. NW Arkansas’ Hispanic community continues to grow larger every day and is becoming an integral part of the fabric of NW Arkansas. The Rogers School system is to be commended for reaching out to the Spanish-speaking parents and listening to their concerns.

Source: Rogers Hometown News, February 15, 2006