Long Island Report

Small businesses are the foundation of the economy in Suffolk County and across the nation, but statistics show Hispanic-owned small businesses have lagged behind in development.

According to a 2008 report by the U.S. Small Business Administration (SBA), small businesses account for about half the nation’s gross domestic product and employment. The most recent U.S. Census data shows that Hispanic owned businesses account for almost 10 percent of all businesses in New York state, but only 7 percent in Suffolk County. Hispanics make up more than 15 percent of the population in Suffolk.

Even though the percent of Hispanic owned businesses in Suffolk is less than the percent for New York state, despite a comparable Hispanic population, the number of Hispanic businesses increased more than 60 percent from 2002 to 2007 in Suffolk, compared to a 44 percent growth nationwide.

Out of all the counties in New York, Suffolk had the largest Hispanic population increase with nearly 100,000 new residents the last 10 years.

(Photo courtesy of the Stony Brook Small Business Development Center)

To help guide the success of existing and future business ventures by the burgeoning Hispanic community, the SBA recently funded “The Hispanic Initiative,” a joint venture with the Stony Brook University Small Business Development Center (SBDC) and Suffolk County. The program is designed to help Hispanic-owned businesses with 500 employees or less in Suffolk.

According to Jesus Alejandro Riano, the coordinator of the initiative, Hispanic businesses struggle because their owners may lack “self-confidence and business aggressiveness”  depending on their proficiency with the English language.

“The language barrier prevents these people from seeking help for their businesses,” said Gloria Glowacki, the associate director of SBDC. “We are hoping this program will help them assimilate into the community and gain self-confidence to succeed in their businesses.”

The program provides assistance to Hispanic business owners, as well as entrepreneurs who want to start a business. Individuals join the program by contacting the SBDC and requesting an appointment with an advisor. The program, which began July 20, will end its first cycle on Dec. 31, 2012.

If the project is deemed a success, which will be measured by the amount of new employees hired within the time frame, there could be another cycle.

The initiative offers one-on-one counseling on matters such as how to start a business, make marketing decisions and prepare for future business plans. As part of one-on-one counseling, advisors will provide referrals, business plans, cash flow projections and marketing/sales campaigns.

The staff of certified business advisers also offers bilingual workshops to help business owners better understand English. Riano stresses that for Hispanic owned businesses to succeed, “a bilingual future is critical.”

Suffolk County Executive Steve Levy said he believes the initiative will give the county’s Hispanic businesses a “leg up.”

“[Hispanic business owners] are given advice from advisors with extensive experience and technical assistance to grow from the program,” he said.

“The Hispanic Initiative” also provides guest speakers from successful Hispanic-owned businesses and forums with both government and private subject matter experts.

At the conclusion of the program, participants are awarded a certificate of achievement.

Over the course of the last few months, “The Hispanic Initiative” has already acquired 50 clients, helping 28 small businesses in first month alone.

Written by: Eleni Petrakos on November 21, 2011.
Last revised by: admin on November 29, 2011.