Primer paso fasttrac

2006 PRIMER PASO FASTTRAC

Tomas Avila MILENIO LATINO INSTITUTE 1/1/2006

Contents Economic Development in the Latino Community: Our Path To the 21st Century ....................................... 4 Progreso Latino Workshops To Train Small-Business Owners ......................................................................... 9 Tomás Ávila Certified as First Step Fast Track Facilitator Business Coach and Administrator .............. 10 Progreso, JWU Honor First Graduates ................................................................................................................... 11 Latinos Taking New Entrepreneurial Skills To Market ..................................................................................... 14 ‘Primer Paso’ A First Step For Hispanic Firms.................................................................................................... 18 An Entrepreneur’s Dream Requires Some Homework ........................................................................................... 20 Entrepreneur Is Gearing Up To Grow His Repair Business .............................................................................. 22 Lead-Safety Trainer Aims To Open Interpreting Firm....................................................................................... 24 Big Dreams Begin With Latino Plantain Treats........................................................................................................... 28 An Accomplished Latina Wants To Mentor Others ................................................................................................... 30 Immigrant Sees Potential For Year-Round Pool Firm....................................................................................... 32 To Grow, Insurance Agent Finds He’ll Need To Invest..................................................................................... 34 Software Creator Focuses On Tour Operators’ Needs ....................................................................................... 36 Theater Gains Confidence To Seek Nonprofit Status ......................................................................................... 38 Primer Paso’s New Grads Already See Improvement ........................................................................................ 40 Latino Entrepreneurs Looking To Succeed ........................................................................................................... 42 PBN Primer Paso Assesment .................................................................................................................................... 43 Program Guides Latino Business Owners ............................................................................................................. 46 PBN’s Myers Joins 5 Others In Receiving Metcalf Award ............................................................................... 47 Tomás Ávila Certified as Fast Track New & Growth Venture Facilitator, Business Coach and Administrator ............................................................................................................................................................... 49 Tomas Alberto Avila Awarded 2007 Rhode Island SBDC State Star at the National Conference of the Association of SBDCs ............................................................................................................................................... 51

Avila Honored for SBDC Services to R.I. Latinos ................................................................................................. 53 Avila Honored For Bringing SBDC Services To Latinos .................................................................................. 54 Immigrant Startups Are Maturing In Nature ............................................................................................................ 55 PBN EDITORIAL .................................................................................................................................................. 55 Workshop Draws Fledgling Hispanic Entrepreneurs .............................................................................................. 56 Primer Paso Three Year Review Interview ........................................................................................................... 58 Primer Paso Spring 2008 Graduation ..................................................................................................................... 61 Kennedy Secures Funds to Assist with Job Development ................................................................................ 63 The Growth of Latino Small Businesses in Providence.......................................................................................... 69

Economic Development in the Latino Community: Our Path To the 21st Century

By Tomรกs Alberto Avila November 8, 1997 Providence, RI Building a community requires a strong foundation upon which to develop neighborhoods into thriving productive areas. Frequently community leaders tend to dwell on the problems and deficiencies of their community as their basis for producing a strategic plan to guide neighborhoods and individuals in building their community. Communities are study for these problems and subsequently become consumers of human and social services.

Often before embarking on a new project, a need assessment is undertaken to identify and determine the specific needs of a target group or community so that a program can properly be structured to meet those needs. Organizations are accustomed to focusing on the gaps in the community in addressing those related needs. Most of the funding directed to lower income communities is based on the problem-oriented data collected in need assessment. Targeting resources based on deficiencies directs funding not to residents but to service providers.

This mentality can also have a negative effect on the nature of local leadership. If for example one measure of effective leadership is the ability to attract resources, then local leaders are in effect being force to belittle their neighbors and their community by highlighting their problems and deficiencies, and by ignoring their capacities and strengths. This direction should be regarded as one of the root causes of the sense of hopelessness that pervades discussions about the future of local communities. Typically, this has been the most common strategy however; a foundation based on deficits makes it difficult to realize the goals of a strong community As the youngest, fastest growing minority group in the country, Hispanics have immense electoral and consumer-market potential. Hispanic consumers already spend over $350 billion a year, and their influence will inevitably grow in national and economic affairs. We need to demand the support of business and Corporate America to help our Hispanic citizens realize their great potential, instead of highlighting the problems and deficiencies in our communities. Investing in Hispanic America makes good business sense.

In today's global economy, Latin America has emerged as a key region for trade and investment opportunities for the United States. Opportunities exist in almost every sector of the Latin American economy, including: communications, software, construction, transportation, agriculture, health and energy. Hispanic Business in the U.S. continues to expand at a higher rate than ever before, with over 1.3 million Hispanic business owners in the U.S. today, generating nearly 200 billion dollars in annual gross receipts. Through this growth, Hispanic entrepreneurs have become a strategic partner for Latin American businesses.

Our community leaders and organizations should proclaimed themselves ready to dive deeply into the issue of economic development, with a multifaceted plan to help our people increase their economic self sufficiency. This agenda should signal a clear economic direction for the Latino community in the 21st century.

This agenda should focus specifically on the way to shape the economic future of Latinos, and should provide how-to strategies on becoming entrepreneurs, accessing capital, getting involved in urban revitalization and partnering with large companies to engendered self sufficiency and wealth building in the Latino community of RI. The organizations will endeavored to build individual and collective wealth, increase business and home ownership, prepare people for gainful employment, and promote academic excellence. The next 30 months should be a time of serious soul searching for Latino organizations. We should be asking ourselves how we could best serve our constituencies in the next century. In most cases, this soul searching should lead to a more sharply defined and targeted approach to achieving our community’s economic objectives. Just like Afro American civil right organizations are shifting their civil right agendas to an economic agenda, Latino organizations need to start focusing on the economic empowerment of our communities.

Why should economic development be the agenda of choice for the Latino community and other minority groups?

Despite some improvement in the last decade, more economic development is crucial if Hispanics are ever to attain a full and equal place in American society. Latino leaders need to furnish Hispanic businesses with training services and management expertise. Leaders also need to assist entrepreneurs in starting new businesses and helps small businesses expand. Because the current environment has shifted from the government to corporate America and the community entities, the politicians in Washington are a lot more inhospitable now than in the past and it’s tougher getting equal rights laws pass. Since this time is not conducive for government activism, self-sufficiency has become the watchword.

With the advent of major corporations right sizing, the white working class is suffering from the same anxiety as other ethnic groups, and to just make a statistical statement about needing to hire more Latinos won’t necessarily work. White workers are starting to view this tactics as a power grab, which has lessened the public relations benefit and the moral authority. Economic Development for the Latino community should not only mean accumulation of capital, but more importantly the development of an infrastructure within our communities, economic development, business development, job creation all have to do with developing a community. Economic development is the active participation in the creation of individual and collective wealth in the community where one lives, participating in the economic revitalization of our own neighborhoods as producers’ manufacturers and sellers. A community will remain powerless when it only consumes.

Economic development provides the fuel to exercise political clout. For mobilizing our ballots power so that politicians who covet our vote don’t take us for granted. For influencing national elections outcome, which as we have learned the hard way of late, shape the composition of the federal courts that ultimately rule on issues close to home. The Latino leaders should work on developing role models within the business community and invest the capital into educational opportunities. This will empower the participants and the community to create it’s own jobs, hire Latinos, contribute to candidates of it’s choice and will exhort Latinos to demonstrate the same entrepreneurial zest that has existed in every community through the following strategies. It should urge Latinos to lessen their dependence in a weekly paycheck by saving and pooling their individual and collective resources and investing them wisely.

It should encourage our organizations to build up local business districts in Latino neighborhoods across the state, instead of standing around waiting for the government to do it, while other cash in the financial benefits. With our small businesses and entrepreneurs, we have the right stuff to take advantage of any huge opportunity that’s unfolding under our noses. There are new opportunities downtown, in many

urban neighborhoods and nearby suburbs. Increase home ownership in our neighborhoods, and produce more executives in income-producing divisions of corporate America Educate young people that academic excellence is the key to competing at a world-class level, and encourage Latinos to become players of our own destiny, and not just bystanders. We should become involved in the merger proceedings if local banks plan to merge, so they won’t fail to make provisions to establish credit pools for the Latino community and secure that retail and business loans flow to the Latino community. Financial institutions have to go beyond window dressing when it comes to community reinvestment. They have to stop just making donations, and instead make low interest money available to the community. They should start making the process easier. The real spirit of community reinvestment is to do those kinds of things, Institute pilot economic development programs and then make successful models available to other community organizations. In order to secure the success of this agenda, the organization needs to make sure that the adequate amount of resources is in place to support it. Utilizing the community reinvestment Act to its fullest extent to bring capital into Latino businesses and neighborhoods. Mainstream companies are eagerly tapping into the new energy and immense purchasing power in cities. The key question is: Are we going to be players? Shame on us if we let the opportunity slip by, only to moan years from now that we’re still on the outside looking in.

Offering the understanding of neighborhood conditions and the long-term focus that the community requires. For example teaching residents about their options and rights concerning housing. Training young Latinos in the various careers involved in the development of the needed infrastructure. Past experiences indicate that significant community development takes place when local community individuals are committed to investing themselves and their resources in a joint effort. Another reason for accentuating the development of the internal economic development of local urban neighborhoods is the dismal prospect for outside help from forces outside the community.

The passive action of sitting around and waiting has been exhausted and proven unworthy to the minority communities. Economic development must start from within the community. One of the biggest obstacles facing local leaders today is revitalizing and expanding the economic life of a community. As a result of various cutbacks and downsizing, smaller neighborhoods and communities have been virtually unplugged from the mainstream economy. In order to reenter the economy, communities need a major commitment to economic development. A creative approach works best in situations where traditional methods of economic development haven’t work.

Question to consider, while establishing a strategic economic development plan.

How may community builders recognize and capture the full economic development potential of all local institutions and organizations?

How can community builders capture local savings and expand the availability of vital capital and credit for community economic development purposes?

How can local development leaders maximize the creative uses of all the physical assets of the community?

Even in most devastated neighborhoods there exist materials needed to construct a path toward economic development. It is necessary to harness the underutilized economic power of local institutions. Noneconomic institutions have the potential to be key players in building stronger, healthier economies

depending on how they use their resources. Local institutions, which invest in neighborhood, demonstrate commitment to the economic health and well being of the neighborhood.

In general there are eight basic methods for local institutions to invest in building their community: 1.

2.

3.

4.

5.

6.

7.

8.

Local purchasing Freeing potential productive economic space Local investment strategies Mobilizing external resources Creating alternative credit institutions Hiring locally Developing new business Developing human resources

Another method that can be utilized to rebuild community economies is to begin looking at physical liabilities and devise alternatives for how they can be transformed into assets. Communities can begin by reclaiming vacant lots and abandoned spaces. This process involves four basic steps: Make an inventory of vacant and abandoned spaces Acquire the space, using variety approaches, often with the help of partners.

Initiate and develop an appropriate project.

Maintain a viable ongoing project.

Whole Community Mobilization Concentrating on maximizing local assets and generating new relationship is not enough. The real challenge presents itself in developing comprehensive assets base strategy, one, which might involve virtually the entire community in the complex process of regeneration. Whole community mobilization may be envisioned and may begin being implemented by a five step process: 1. Mapping completely the capacities and assets of individuals, citizens associations and local institutions.

2. Building relationships among local assets for mutually beneficial problem solving within the community.

3. Mobilizing the community’s assets fully for economic development and information sharing purposes.

4. Convening as broadly representative groups as possible for the purpose of building a community vision and plan.

5. Leveraging activities, investments and resources from outside the community to support asset based, locally defined development.

6. All together these steps comprise the process of achieving an asset based, internally focused and relationship driven community economic development.

Reference Altshuler, Alan A. and Jose A. Gomez-Ibanez. 1993. Regulating for Revenue: The Political Economy of Land Use Exactions. Washington, DC: The Brookings Institution.

Avila, Alberto, Tomรกs Community Leadership Development Initiative Structure & Vision, Providence, RI January 1, 1997 Blakely, Edward J. and David Ames. 1992. "Changing Places: American Planning Policy for the 1990s."

Journal of Urban Affairs 14:423-446.

Bogart, William T. 1993. "'What Big Teeth You Have!': Identifying Motivations for Exclusionary Zoning." Urban Studies 30:1669-1682.

Clingermayer, James C. and Richard C. Feiock. 1993. "Constituencies, Campaign Support, and Council Member Intervention in City Development Policy. Social Science Quarterly 199-215 Dear, Michael and Allen Scott, eds. 1986. Urbanization and Urban Planning in Capitalist Society. New York: Methuen.

Fleet Bank, 20/20 Vision CRA Symposium, Washington DC November 4-6, 1997 Rodriguez, Ralph, Governor's Advisory Commission on Hispanic Affairs Action Forum Report, Providence RI, November, 1997

P r o g r e s o L W o r k s h o p s T S m a l l - B u s O w n e r

a t i n o o T r a i n i n e s s s

Thursday, October 14, 2004 The Providence Journal

Progreso Latino, through its Economic Development Center and partners, is sponsoring programs that will allow small-business owners to refine their skills and expand their networks of federal, state and local resources.

Sessions on opening and running a restaurant will be offered in Spanish by Johnson & Wales University's Larry Friedman International Center for Entrepreneurship. A business expert will take participants through a basic business plan, marketing, staffing, scheduling and more. The course will meet on Mondays and Wednesdays, Oct. 18, 20, 25 and 27, from 6 to 8 p.m., at the university's Center for Entrepreneurship, 10 Abbott Park Place, Providence. Materials are provided.

A second program will begin next month, when the Progreso Latino Economic Development Center and Milenio Associates will cosponsor an 11-day technical business course at Johnson & Wales in cooperation with students from the university's International Center for Entrepreneurship. The training aims to facilitate small-business planning with an initial overview, an assessment and a map. Students from the university will provide one-on-one technical support to program graduates.

For more information, call Margarita Guedes at (401) 728-5920, ext. 317.

Tomás Ávila Certified as First Step Fast Track Facilitator Business Coach and Administrator Providence, RI. (October 30, 2004) – Tomás Ávila Managing Partner of Milenio Consulting becomes the first Certified First Step Fast Track bilingual (English/Spanish) Facilitator and Business Coach in the Kauffman Foundation-sponsored program in the state of Rhode Island.

Designed to provide entrepreneurs with business insights, leadership skills and professional networking connections so they are prepared to create a new business or expand an existing enterprise.

The FastTrac program includes practical, hands-on business development programs and workshops for existing entrepreneurs, aspiring entrepreneurs, as well as entrepreneurship curriculum for college students. Ávila partner with Progreso Latino the largest Rhode Island Latino social service agency and Johnson & Wales University Business School Larry Friedman International Center for Entrepreneurship, serving as the development administrator and facilitator in the development of the (Primer Paso) First Step Fast Track Program, through its Business Resource Center directed

by Margarita Guedes. The center helps entrepreneurs develop their businesses and help residents looking to grow their business. Joining forces with Johnson & Wales University and the Kauffman Foundation-sponsored program the center plans to bring higher education and the Latino business community together in helping them grow their businesses.

Avila who served as Interim Program Manager at the Rhode Island Small Business Development Center Enterprise Community Office, in Providence directed consulting operations at the center through meeting with business clients to assess their consulting needs/requirements; assigning consultants can that best meet the client's needs, has extensive experience working with growing Latino community of the state. He also served as a consultant to RISBDC Spanish speaking clients, and was the lead consultant in the development of the SBDC successful 10 week Latino Business Initiative Spanish Entrepreneurship Series “Serie Empresarial”.

FastTrac is a comprehensive entrepreneurship-educational program that provides entrepreneurs with business insights, leadership skills and professional networking connections so they are prepared to create a new business or expand an existing enterprise.

Progreso, JWU Honor First Graduates David Casey The Pawtucket Times 04/15/2005 PROVIDENCE -- "The backbone of the U.S. economy is small business," said Ned Levine, chief strategy officer for Johnson and Wales University, "because every business started out as a small business."

The entrepreneur, the lifeblood of American commerce, and her transformative influence on her family and community was the focus of Primer Paso/First Step FastTrac, a bilingual training program, established through a partnership between Progreso Latino and Johnson & Wales University to provide small business education, support and networking opportunities to prospective Latino businesspeople.

Local and state dignitaries, from Lieutenant Gov. Charles Fogarty to Secretary of State Matt Brown were on hand to celebrate the achievement, not only of the program’s first 24 graduates, but the success of the program itself, a collaboration between the university’s Larry Friedman International Center for Entrepreneurship and Progreso Latino, the state’s largest direct services agency.

The basic idea behind the program is that enduring social progress for Rhode Island’s minority communities can only be achieved through economic development. Economic development, the premise concludes, can only be achieved through intensive training: hands-on instruction, partnerships with educational institutions and the support of local lenders and government officials.

The success of a motivated few, said Cancel, will not only create jobs within the community, but increase its future crop of motivated entrepreneurs.

It was conceived by Progreso Latino’s executive director, Edwin Cancel; the agency’s Economic Development Center director, Margarita Guedes; and JWU Larry Friedman International Center director, Larry Bennett.

"The standard approach is to teach large numbers of people some basic entrepreneurial skills," Cancel said. "But we decided it would be more advantageous to train a small number of people who are capable of succeeding, and give them the support and guidance to ensure they do succeed, to give them the skills and knowledge they need to create a viable business plan, and to bring the local lending community into the conversation, so they can build a relationship with lenders along the way."

The program’s 12 nighttime workshops, covering such topics as finance, market research, pricing, product/service and cost-pricing strategies, were taught in English (First Step) and Spanish (Primer Paso)

by Tomas Avila, the managing partner of Milenio Associates real estate and former president of the Rhode Island Latino Political Action Committee.

Javier Brown, a first-generation Venezuelan immigrant who is contemplating his second Ocean State business, is one of Primer Paso’s inaugural graduates.

"I’ve already opened a packaging company called O2J Inc., and now I’m getting into the food manufacturing business," said Brown, who conjured up the recipe for a canned snack with the help of his wife, Ana. "It is a cake, in a can with pudding and fruit or chocolate -- we call it Ana Brown Products."

According to Brown, professional consultation and business planning support are the program’s most valuable resources.

"A lot of people start businesses and spend a lot of money before they know how successful they will be," he said.

"Here you can test the feasibility of your idea with professionals before you spend a dollar."

The reception was a particularly special occasion for Cancel, who will step down from his three year directorship in two weeks. In recognition of Cancel’s contribution to the Latino community, and inasmuch as Latinos are the fastest growing segment of the state’s population, Rhode Island’s economy, state Treasurer Paul J. Tavares presented Cancel with a citation.

"This has been an incredibly special night for me," Cancel told The Times, "not only because we are here celebrating the success of our graduates but because we have consummated an ongoing relationship with a top-notch university like Johnson and Wales."

The 2005 graduates are: Jose Alba, Prov.

Esperanza Ardila, C.F. Rolando Belen, C.F. Arnoldo Benitez, Prov.

Luis Benitez, Prov.

Javier Brown, Cumb.

Maria Cuervo, C.F. Roberto Gallegos, Prov.

Raul Garcia, Prov.

Augusto Hedeman, Prov.

John Ireland, E. Greenwich Asceneth Lazaro, C.F. Teresa LeBeau, Prov.

Ney Leo, Prov.

Maria Lopez, Prov.

Liandra Martinez, Prov.

Rodolfo Martini, Pawt.

Vivian Moreno, Prov.

Manuel Osorio, Pawt.

Saul Pabon, Prov.

Harold Smith Jr., N. Kingstown Zulimar Vidal, Prov.

Andrew Zetina, Prov.

ŠThe Pawtucket Times 2006

L a t i n o s T a k i n g N e w E n t r e p r e n e u r i a l S k i l l s T o M a r k e t

By JULIETTE WALLACK Special to the Journal The Providence Journal Wednesday, April 13, 2005

Editor's note: Students in an advanced feature writing class at Brown University were assigned to write a feature story about a street that conveys a sense of place. The project, in its seventh year, presents aspects of city life from the perspective of college journalism students.

PROVIDENCE -- Tomorrow, 12 Rhode Island residents and their families will gather at Johnson & Wales University for a graduation. But they won't be there for JWU's traditional ceremony.

The 12 adults who will be graduating want to start their own businesses, and for weeks, they've gathered at JWU for a new class designed to teach members of the Latino community how to do that. The commencement will herald the end of the course and the skills the budding business owners have gained.

Some are in their 20s; others are middle-aged. Every Wednesday night since the beginning of the year, they have come to class at the Larry Friedman International Center for Entrepreneurship.

The large, airy center is used during the day by JWU students.

Just before 6 p.m. on this class night, the Latino students begin to trickle into the center, carrying binders and bags. Greeting each other, "Hola, buenos tardes," and shaking hands, the students settle down at tables. .

Located in an old mill building that echoes Providence's former industrial economy, the center at 10 Abbott Park Place is nestled at the edge of a tiny park abutting Weybosset Street, tucked between JWU's administration building and Beneficent Congregational Church. In a building in which jewelry was once manufactured, students formulate business plans and work with Rhode Island businesses to gain practical experience, integrating technology with their endeavors.

Computer kiosks sit near industrial-style support columns, where machinery likely once sat, providing a portal to the Internet. Pipes and ducts in the exposed ceiling hang above stylish light wood floors.

The 12-week course -- known as First Step FastTrac -- teaches the entrepreneurs how to make a business plan and could help them secure start-up financing, according to Margarita Guedes, director of economic development for Progreso Latino, the Central Falls-based organization that is sponsoring the course. .

An English version of the course is available around the country, but this is the only one in New England in Spanish, Guedes said. This class will be the first to graduate from what Guedes hopes will become a twice-yearly offering.

"Buenos tardes," Javier Brown says as he walks in. He's a stocky man who comes in smiling every week and is known as the student who always asks a lot of questions. Tonight, he carries a duffel bag and a small red picnic cooler.

"Buenos tardes," responds Tomas Avila from the front of the classroom. Avila works as a consultant to small Latino-owned and operated businesses and is teaching the course.

Brown, a 38-year-old who owns and runs a successful Pawtucket-based jewelry packaging business, sits at a table toward the back of the classroom. The class is given at the dinner hour, and some participants arrive with takeout food, but Brown doesn't open the cooler. Instead, he leafs through his binder of course material.

Tonight's class will feature a guest speaker: JWU's entrepreneurship center director Larry Bennett. Bennett doesn't speak Spanish, so a JWU student will translate.

But before Bennett takes the podium, Brown raises his hand and tells Avila he needs to make a presentation. Standing up, he strides to the front of the room, carrying his red cooler.

As he speaks, Brown pulls little plastic containers from his cooler with evident pride. The contents of these containers are what his business idea is based on. . Inside is a simple mixture -instant pudding, canned fruit and lady fingers -- and Brown wants to get the sweet treat on grocery shelves. This is the first time the class has seen or tried Brown's product. He passes around plastic spoons, and class members dig in.

"Bueno," nods one class member. "Si," another murmurs after his first bite. "Es muy bueno," another one cries. Brown grins, hands out the remaining samples and settles back into his seat.

Brown, who emigrated from Venezuela five years ago, has high hopes for the pudding concoction. The mixture was one of his wife's staple recipes, but when friends and relatives started requesting it at get-togethers and events, Brown got an idea.

"My plan is to sell this stuff," he said, though he doesn't know when it will be on grocery store shelves. "That's why I'm here," learning how to start a business oriented around a product.

Brown, who lives in Cumberland, has business experience, but making and marketing a product is new for him.

The product will be called Anna Brown, he said, which is his wife's name. It's a nondescript name because he hopes to expand into other products. "Like Sara Lee," he proclaimed. "She started with cake, and now she has everything!"

About 30 people applied for the 12 spots in this class, and they were selected after interviews.

Those whose business ideas weren't mature enough were directed toward other resources,

Guedes said. Those who were admitted have some business experience, either in the United States or in their previous country of residence. The students hope to open businesses that include a hair salon, a construction company, a clothing store, a recording studio and a consulting firm.

"It was a detailed application process," Guedes said. "We wanted to get the right profile of people who will follow through."

One of those selected was Zulimar Vidal, 21, who has arrived early to talk with Avila about ordering business cards. Vidal, who is Puerto Rican, is the youngest in the class. Her youth is deceiving. She's already run a business out of her Providence home, selling costume jewelry to friends, relatives and others who heard about her through word of mouth. She called her business Lady Cartel Fashions but after some success, she started losing money.

She's wants to get things back on track. She hopes to eventually expand to sell a clothing line integrated with popular music styles. She thinks there's a niche for people who want to "dress hip-hop or dress rock."

Vidal is one of the class's more advanced students. She already has a business portfolio, several months in business behind her, and she's thinking about designing clothing and opening a store in Rhode Island.

She says she's learning new things in the class that will be helpful. "It's a great opportunity, especially for the Latino community," she said, her long hair bouncing as she spoke. "They don't even know what the resources are out there."

Latinos are a significant part of the Rhode Island economy. According to the Census Bureau, almost 9 percent of state residents in 2000 were Hispanic -- a number that is expected to grow over the next 15 years, according to JWU's Bennett. And in 2002, Rhode Island was among five states with the fastest growing number of Hispanic-owned businesses. In 1997, the latest year for which statistics are available, 2,186 Rhode Island businesses, or 7.7 percent of all businesses in the state, were Latino-owned and operated. Avila said that number has increased. ut people of Hispanic descent still have a hard time securing loans from banks and investors, says Guedes, and that's something she hopes will change with this course. As the entrepreneurs educate themselves, they realize what they need to have to impress financial backers, she says.

Avila said he sees a common trait among his students. They're much like the "typical small business owner," who "start businesses with what they have. In many cases, they're not familiar with the different laws, structures."

Liandra Martinez, 31, wants to open a consulting firm that caters to Latinos and nonprofit organizations. As an Olneyville community organizer, she's been toying with the idea of going into business for a while.

"As far as the consulting, there are not a lot [of firms] that are Latino-based," says Martinez.

But her idea is changing as the course progresses; because of the course, she's thinking about her potential clients and about whether she should have an office or work out of her home.

Martinez said she's "excited about the help we're going to get. We don't have support networks."

When she was planning the course last fall, Guedes approached several colleges, but JWU seemed like the best fit, largely because of Bennett's eagerness to involve students in the process.

During the last few weeks of the course, JWU students helped the Latino entrepreneurs research their businesses and write business plans.

"The students get the real life experience," Guedes said, and the "bicultural experience that the students have" is particularly valuable. "They're there for a common goal."

Tonight, JWU senior Silvano Grego, a 25-year-old native of Argentina, is serving as an interpreter for Bennett, who is teaching the class about different types of marketing and advertising.

Many Latino entrepreneurs have trouble defining and expanding their market, according to Guedes. Many find it easiest to sell to a Latino clientele. But to make a business grow, any entrepreneur needs to consider selling to multiple communities.

"So here, through this exercise, they spend time really researching," Guedes said, gesturing at the center's main room.

"If you're thinking of just a Latino market as your customer base are you satisfied?" Bennett asks the class. The students shake their heads no --they've learned that they need to draw a large number of customers, regardless of ethnicity. The students are attentive while Bennett speaks, taking notes and peppering him with questions. One, who wants to expand his appliance sales business, pesters Bennett about what type of advertising is better -- radio or newspaper.

After an hour and a half of lecture and discussion, Bennett wraps things up; it's already past 8 p.m. But the students don't rush out. Some pack their items slowly, talking to their classmates about what was discussed in class. Others stop to compliment Brown on his dessert.

"Gracias. Gracias," he says, smiling.

‘Primer Paso’ A First Step For Hispanic Firms

By Natalie Myers, Staff Writer Published 09/23/2006 Issue 21-24 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 14 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the first article in the series.

Hector Monzon wants to open a Guatemalan restaurant. Marta Alvisuriz wants to start a laundromat.

Miriam Garcia wants to open a meat market.

Domingo Tejada wants to start a small construction company. Wilfredo Chirinos owns a computer service and repair company, but he and partner Oscar Mejias want to expand into software development.

Fidel Calcagno sells Web-site domains on the Internet, but he’s looking to purchase a water treatment company. Cesar Cuevas wants to expand his restaurant, Papiajo Frituras. Each of these entrepreneurs is a participant in a 12-week program held every Wednesday at the R.I. Small Business Development Center, at Johnson & Wales University.

This is the first year the SBDC will sponsor and facilitate the course, entitled Primer Paso (literally “First Step”) FastTrac, which was developed by the Kansas City-based Ewing Marion Kauffman Foundation, a national organization that supports the creation of an entrepreneurial society through grants and other programs.

The course “looks at the whole process of starting a business or growing a business,” said Tomas Avila, an SBDC business counselor and course facilitator. “It gives them the opportunity to analyze themselves and the idea they have.”

In 2004, Avila said, he became the first bilingual FastTrac facilitator certified by the Kauffman Foundation. He also was one of the first to translate the course into Spanish two years ago, when it was part of Progreso Latino’s programming.

Since then, he’s followed it to the SBDC, which took over the course because Progreso Latino wanted to focus its attention on other areas, Avila said.

Over the class’s 12 weeks, the 14 participants will each develop a feasibility plan, based on their business idea and research, he said. That will include gathering information for a market analysis, developing pricing strategies, determining financial feasibility through cash-flow analysis, and finalizing a cash-flow report.

The first class was an introduction. “This is your show,” Avila told the class. “Everybody gets the same information,” he said. “But each feasibility plan ends up different.”

Avila said he often works with participants one-on-one over the course of the 12-week program. And he follows up with them, once it’s over.

“It’s an eye-opener to the business community,” he said. “Many with an existing business, if they [were

to] continue the way they are going, would fail.”

It’s important to the state’s federally funded SBDC, which started a Latino initiative four years ago, because the Hispanic population in Rhode Island has grown 27 percent during the past five years, said John Cronin, executive director of the SBDC. The number of Hispanic-owned businesses has grown even more sharply, by 56.2 percent from 1997 to 2002, to 3,415 statewide with about $200 million in annual sales, according to U.S. Census Bureau data.

Cronin added that the accountants and bank managers he spoke with during a needs assessment of the SBDC’s services and programs noted they are noticing an emerging community of savvy Latino entrepreneurs, who, because of the language, aren’t getting the business training they need.

Four years ago, the SBDC started offering a 10-week business planning workshop in Spanish, to address the specific challenges Latino business owners face. About 600 entrepreneurs have attended that workshop since its inception. The addition of Primer Paso, Avila said, “brings with it the whole structure, all the steps necessary to do the feasibility plan prior to going into the business plan.”

Avila told the class it is time to disassociate the word “Latino” from their businesses. Many Latino business owners are missing out on 90 percent of the business in Rhode Island, he said, because they migrate to areas dominated by Spanish speakers.

Doing so allows them to cater to the Latinos who last year made up about 10.3 percent of the state’s population, according to Census Bureau estimates. But, Avila said, “They are missing out on opportunities to grow outside the Latino community.”

Luis Rodriguez won’t have any trouble reaching outside the Latino community. He owns Wayland Bakery, in Wayland Square, on the East Side of Providence. Rodriguez has a business plan in his head, he said, but the day-to-day operations of his bakery have kept him too busy to write it down.

Like many others, he didn’t always own a business. An elementary school in Guatemala, Rodriguez had to find a new career upon moving to the United States about eight years ago, he said. He said he got involved in the business by working for Daily Bread for about five years, before it folded. He worked his way up to head baker – then, when the opportunity arose to purchase Daily Bread’s Wayland Square bakery, he took it.

Rodriguez said he is taking the class because he wants to learn. “If I want to expand, I’ll need loans,” he explained. And to get loans, he’ll need a business plan.

An Entrepreneur’s Dream Requires Some Homework

By Natalie Myers, Staff Writer Published 09/29/2006 Issue 21-25 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the second article in the series.

Miriam Garcia fondly remembers her father’s “social club” in Brooklyn. She can recall the pride he took in maintaining the club’s juke box, pool table, bar and display cases. She remembers the way he interacted with customers.

That was before he died and her mother took Garcia, then 16 years old, and her four sisters to Puerto Rico. Garcia lived there for about 10 years before returning to the U.S. mainland.

Now she has her own children – one 17, the other 13. She assesses new students for the Providence public schools to determine where they will be placed. But like her father, she wants to run her own business, and so, with two partners, she is opening a meat market in Pawtucket. She also hopes to open a day care center, after she retires from her school district job.

That’s why Garcia is taking the Primer Paso FastTrac 12-week business planning course, taught by business counselor Tomas Avila at the R.I. Small Business Development Center at Johnson & Wales University.

Avila is teaching the class in Spanish as part of an effort to reach out to the Latino business community.

Garcia said that, although she is fluent in both Spanish and English, her partner’s primary language is Spanish, so she chose this class to help her as she, Felix Rodriguez (a butcher of 25 years) and Alexis Encarnacion open Fiesta Meats, off Broad Street.

They hope to open the meat market by Oct. 28. But Garcia said they still have a lot of work to do. They are tearing up the uneven concrete floors, and building space for a walk-in cooler.

“I’m still working on paperwork,” she said.

Despite the difficulties of starting a business, the process also has helped to inspire Garcia’s day-care aspirations.

“At first, you don’t want to take the risk,” she said. “We think we will fail … then you see there’s a chance. It’s going to take time and a lot of money to invest, but you can do it.” From the meat market, Garcia said she’s learned a few things “not to do,” such as spending money on rent, equipment and renovations before creating a business plan, acquiring the necessary permits and getting floor plans approved by the R.I. Department of Health.

Avila told the class recently that many entrepreneurs start their businesses that way. “Most people spend the money, and then they plan.”

“The development of a business plan is not just for the purpose of obtaining a loan, but instead, its main

purpose is to secure a successful business that will grow and produce positive revenue.”

Garcia said she hadn’t realized a business plan was so involved. She thought it should be a basic outline, like a teacher’s lesson plan. “I didn’t know it was that important. I didn’t know it was important to grow your business,” he said.

As homework, Avila gave the class a personal financial budget worksheet. “It’s pretty much for the individuals starting a business,” as opposed to those with existing businesses, he said. “Anyone who starts a business needs to make sure that their financials are in order.”

As for Garcia, she said she is becoming anxious about Fiesta Meats’ opening this month, but she is gaining confidence about her plan to for a day-care center.

There is a need for day care, she said. She sometimes sees 20 to 25 students a day coming into Providence’s school system to register for classes, and very often, they have young siblings.

Garcia earned a degree in education in Puerto Rico and currently tutors children. “I think it’s one of my talents,” she said. But first, she must write a business plan. “That’s why I’m taking the class,” she said. “I want to do the first steps.”

Entrepreneur Is Gearing Up To Grow His Repair Business

By Natalie Myers, Staff Writer Published 10/07/2006 Issue 21-26 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the third article in the series.

Wilfredo Chirinos’ computer repair business, PC Repair & Network, used to be a one-man enterprise. He didn’t need much capital to start it – just a computer with Internet access, some basic tools and reference materials, and a small office.

Most of his customers are referrals from friends or family, he said. That’s how he’s created a customer base while spending little money on marketing. And he’s managed to stay in business for five years.

“Right now, I want to grow,” said Chirinos, who moved to Providence from Venezuela in 1994.

Chirinos formed a partnership with Oscar Mejias two months ago to aid in expanding the business.

But the pair is still short of resources to meet customer demand, he said. Their services include hardware maintenance and repair, virus and spyware removal, and network and software troubleshooting for individuals and small businesses. But expanding even more would mean hiring employees, purchasing more equipment and moving to a bigger space, and that is a “little scary,” he said.

So Chirinos and Mejias are taking the R.I. Small Business Development Center’s Primer Paso FastTrac 12-week business planning course to determine how much money they will need for expansion and find the best possible way to finance it.

Finance was the topic of a recent session of the class.

SBDC business counselor Adriana Dawson spoke about personal credit scores – what they are, how they are calculated, how to improve them, and how important they are for securing a loan.

“I would consider this the first phase of the educational piece on the loan process,” said Dawson, who is also the SBDC’s regional director for Pawtucket and Central Falls. “People might want to work on [improving] their credit scores three to four months before going to get a loan.” Credit management is a challenge for owners of existing businesses, she said, because they often use personal credit to finance the startup phase.

“It can have a negative impact on their credit.”

That was not the case for Chirinos. He said he started PC Repair & Network with his own money, while he was working as a quality-control inspector for a manufacturer of parts for refrigerators and air conditioners.

“I didn’t have any problems with credit,” he said. “I was in very good standing.” But the class did give Chirinos helpful new information about the R.I. Economic Development Corporation’s microenterprise loan program.

Carmen Lorenzo, account executive for the RIEDC’s Every Company Counts program, said loans range from $5,000 to $50,000 for startups and $5,000 to $75,000 for existing businesses. They charge interest only for the first six months; then, borrowers are given a five-year payment plan.

Every Company Counts’ micro-loan program started one year ago, said Louis Soares, director of business development and innovation at the RIEDC. The program evolved from conversations with small business owners in urban communities, many of them minorities, Soares said. “We didn’t have a finance package for smaller microenterprise,” he said. “We simply saw a market need.” Chirinos said such a loan might be an option for funding his company’s expansion. The program was one he hadn’t heard of before.

Meanwhile, he said, he will continue planning to “develop the capacity to fulfill all clients’ needs.” He hopes to grow his business to “ensure the future of my sons,” he said. One is 6 years old; the other is 2.

“This is a good time to take the class.”

Lead-Safety Trainer Aims To Open Interpreting Firm

By Natalie Myers, Staff Writer Published 10/14/2006 Issue 21-27 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the fourth article in the series.

Veronica Martinez has been providing translation services and filling out immigration paperwork for people in the Latino community for 10 years now. It is something she does at home at night and on weekends, as a favor.

Her dream is to turn that sideline into a full-time, full-service translation business that also provides notary services, income-tax return preparation, immigration paperwork and an insurance brokerage – all bilingual. To help bring her dream to life, Martinez is taking the 12-week Primer Paso FastTrac business planning course, taught by R.I. Small Business Development Center business counselor Tomas Avila.

Identifying the value that products and services bring to the consumer was the topic of a recent session of the class, which meets at Johnson & Wales University’s Larry Friedman International Center for Entrepreneurship in downtown Providence.

Avila encouraged the members of the class to think of reasons people might choose their products and services and ways to differentiate themselves from their competitors.

“I’m trying to get them to think outside the box” when it comes to products and services, Avila said. As an example, he said, a person who sells cell phones also might think about selling iPods and other small electronics, to broaden the client base.

Martinez said she wants to offer interpreting services via conference calls, with three-way phone conversations between the interpreter, the client and the third party with whom the client wishes to communicate.

The objective is to allow her client to access the interpreting service conveniently, from home – instead of having to travel to an office, as competitors often require. “Nobody has that, as far as I know,” she said.

She also wants to emphasize customer service, she said. She wants to train her staff to be helpful and pleasant, because in her experience and that of many acquaintances, those skills are lacking, even in businesses that should be customer-focused.

“I want to have a business where I’m going to bring pleasure to people,” she said. Martinez, who moved to Providence from Guatemala with her family when she was 15, hopes that by taking the business planning class, she will learn how to avoid classic mistakes, such as poor management of finances.

“I’ve learned how difficult it is to write a business plan – but more importantly, to execute it,” she said.

Avila said many entrepreneurs “will have to struggle at being masters of everything, as opposed to being masters of the one position they held as employees.” Martinez currently works at the Community College of Rhode Island, as a training specialist for general contractors and tradesmen. She teaches them how to

protect themselves while working with lead paint.

Her goals for her business, she said, are to make it grow and prosper so she can retire and live comfortably while continuing to provide for her three children, who are 27, 19 and 16.

Martinez said she is not going to limit her translating services to the Latino community. She hopes to offer services in as many languages as possible. The reason she started offering translation services from her home was to fill a need, she said.

Her early clients “had no one” to help them communicate with the gas company or landlords or government agencies, Martinez said. And she saw other translators were filling out immigration papers without explaining the process properly to their clients. “I tell them what can happen if they lie,” she said.

“They could get a fine or go to jail.” Martinez said she knows that starting her own business is “not going to be an easy task.” “But I am excited,” she said.

Couple Want To Build Their Business Right This Time

By Natalie Myers, Staff Writer Published 10/21/2006 Issue 21-28 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the fifth article in the series.

Domingo Tejada knows construction. He started building and fixing houses with his uncles and cousins in the Dominican Republic when he was 17. So, when he moved to Providence in 2001, Tejada decided to continue in the business he’s known for 21 years.

A year later he met his fiancée, Rosa Vizcaino, and they decided to start their own construction business, D-N-R Building and Construction Inc. (The D-N-R stands for Domingo ’n’ Rosa.)

Things were OK for about three years, Vizcaino said. They put up vinyl siding and did interior remodeling – putting up wallboard, installing floors, installing cabinets, sinks, windows and doors. Tejada did the manual work, while Vizcaino handled the administration.

Then, “in the middle of 2005, things went haywire,” Vizcaino said. People were rejecting contract proposals because they thought the company’s estimates were too high.

Customers would return to them, she said, after the cheaper contractor asked for money up front, then didn’t return to finish the job.

But, “They wanted us to eat the cost [they had lost from the scam],” Tejada said, “We couldn’t absorb the cost on our own, starting up.”

In addition, Vizcaino said, people would ask for financing on jobs, which the company also couldn’t afford.

Funds were running low and requests for jobs were growing sparse, so the couple put their business on hold. Tejada started subcontracting, while Vizcaino began working part-time at the R.I. Coalition for Minority Investment and AIDS Care Ocean State.

Then, Vizcaino found out about the R.I. Small Business Development Center’s Primer Paso FastTrac business planning workshop – a 12-week course taught in Spanish to reach out to the growing number of Latino entrepreneurs. She encouraged Tejada to take the class, she said, because “I wanted him to see what can happen. … I wanted him not to get discouraged.” So far, it’s working.

In a recent class, Tomas Avila told the students about the importance of researching their industry: “Many times, businesses fail because they stay in an industry that’s going downhill.” He encouraged them to study their competitors and they can find their own niche. “They have to specialize rather than be a generalist,” he said. “They have to find another way to compete.”

Tejada plans to compete by offering timely delivery of services, plus a one-year warranty written into every contract, because “there are many people in the industry, many promising contracts with individuals and not fulfilling services.”

The couple had his contractor’s license number printed on their business cards. And on the back of the cards, they explained how to check a contractor’s license and record at www.crb.ri.gov.

Still, Tejada wants to focus on preparing a business plan; he said part of the reason their first business failed was a lack of planning and finances. Vizcaino – who is taking the same course as Tejada, but in English, with the R.I. Coalition for Minority Investment – said she is hoping to take another swing at construction. Her parents owned and operated four restaurants while she was growing up in Providence.

“I knew nothing else but to be self-employed.”

Tejada said his hope for the future is “to grow the business, to grow and provide employment, provide better services.” He added: “I know there are many companies out there, and many obstacles, but that shouldn’t stop us from pursuing our dream and our vision.”

Big Dreams Begin With Latino Plantain Treats

By Natalie Myers, Staff Writer Published 10/28/2006 Issue 21-29 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the sixth article in the series.

Cesar Cuevas has a vision. He would like to have a Papiajo Frituras food vending truck or restaurant in every city and town in Rhode Island.

His specialty product is a plantain basket stuffed with meat or vegetables and fried. It’s called “papiao.”

Cuevas started the business three years ago, by purchasing a food vending truck and equipment. He operates in the evenings, from 6 p.m. to 1 a.m., near the corner of Broad Street and Prairie Avenue in South Providence.

“Every month, I see more new customers,” he said. “More people are asking for the same product.”

To grow, he’ll need another truck or a bigger truck or a permanent location, he said.

That’s why Cuevas is taking the R.I. Small Business Development Center’s Primer Paso FastTrac business planning workshop – a 12-week course, taught in Spanish to reach out to the state’s growing number of Latino entrepreneurs.

At a recent class, SBDC business counselor Tomas Avila invited marketing consultant Leon Mesa to speak.

Mesa described the perfect marketing mix as consisting of four P’s: product, price, promotion and publicity. The first goal is to differentiate the product or service, he said. The second, to price it.

Before thinking about promotion and publicity, “you have to define your marketing segment and customer segment,” he said. “The more we identify and get to know our client the better we’ll be able to satisfy them.”

Cuevas said his client base is mostly Hispanic families and young adults. And they tell him what they want. He recently started making larger orders of papiao for parties and other events, because his product works well as an appetizer.

But Cuevas hasn’t done any promotion or advertising, because he doesn’t have the resources to supply a large influx of customers.

Even those like Cuevas who haven’t invested in business cards, a Web site or ads, Mesa said, can use price as a marketing tool. “You can sell at a low cost when you have a variety of complementary products that will allow you to recoup the loss on a particular product,” he said. “You can sell a product at a higher price than your competition when you have a superior and differentiated product.”

Cuevas charges $1 per papiao, he said, because he wants his product to be affordable to his customers but

also profitable.

Cuevas moved here in 1993 from New York City. A native of the Dominican Republic, where he was a police officer, he has a wife and three daughters, ages 12, 13 and 16. He had worked in construction and as a taxi driver before going into businessm because “it’s a better economic base for my family.”

From the class, Cuevas said, he’s learned “the importance of giving to people the best service and trying to be different from others doing the same business.” No one, to his knowledge, makes papiao in Providence besides him, he said. He also stands out by singing to customers sometimes.

Even having a phone number and proper answering-machine message are marketing, Avila said, because they help represent the business.

“Everything [they] said is new for me,” Cuevas said, adding that’s why he took the class, to gain more knowledge before expanding. He would like to eventually have a Papiajo Frituras in every state, like McDonald’s. “It’s in my head,” he said. “I can dream.”

An Accomplished Latina Wants To Mentor Others

By Natalie Myers, Staff Writer Published 11/04/2006 Issue 21-30 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the seventh article in the series.

Sandra Lake started the Extraordinary Woman Awards because she admires the many women who, like her, came to the United States from other countries and are improving themselves and their communities here.

Lake established the program as a nonprofit almost immediately after moving to Providence in 1999.

Each year, it honors nine local women and one woman abroad who have achieved personal or professional improvement in one of 10 categories.

Most of the winners are Latinas, she said, but the award isn’t limited to them.

The awards ceremony is held on March 8 every year – declared International Women’s Day by the United Nations 31 years ago. This year, about 200 people attended.

Now, after seven successful years, Lake said, she is ready to expand the nonprofit to add workshops and seminars and help women improve their personal and professional lives year-round.

But first, she’ll need more capital. That’s why she is taking the R.I. Small Business Development Center’s Primer Paso FastTrac business planning workshop – a 12-week course taught in Spanish to reach out to the growing number of Latino entrepreneurs.

In a recent class, marketing consultant Leon Mesa taught the entrepreneurs how to balance expenses with pricing to come to a break-even point.

Mesa said he doesn’t believe a business has to lose money to make money. He told the class to strive to meet the break-even point in their first year of business, and then build profit through pricing in subsequent years.

Lake, who wants to keep her company as a nonprofit, said she already breaks even. She raises funds by selling ads in the awards ceremony’s program.

But to function year-round, she’ll need more ways to raise funds, said Tomas Avila, an SBDC business counselor and the class facilitator. He is helping Lake develop a proposal she can send to corporations, inviting them to buy tables at the event or make donations. Whatever she does, Lake said, she will continue to honor exceptional women.

Even when men share in the responsibilities, she said, women do “double work,” at home and on the job.

It’s even more of an accomplishment, she said, for women who are also adapting to a new country, new customs and a new language.

She can identify with that challenge. Eight years ago, she moved to New York City from the Dominican Republic with her husband and three daughters, now 13, 15 and 16. She had the equivalent of a bachelor’s degree in education and 16 years’ teaching experience, she said, but with limited English skills, she had to take a job in a factory.

Since then, Lake said, she has worked hard to improve her English, and she’s now a special education teacher’s assistant in a Providence school.

By expanding her nonprofit, Lake said, she will be able to help others. “I can improve myself,” she said.

“I can become an employer. I can build a future for my family.”

Lake also wants to eventually own and operate a preschool, she said, because “the early years are the best years to teach good things, to model the personality.”

From Primer Paso, she said, she is learning the first steps of organizing her business. “I don’t want to start and then learn; I want to learn before I start.”

Immigrant Sees Potential For Year-Round Pool Firm

By Natalie Myers, Staff Writer Published 11/11/2006 Issue 21-31 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the eighth article in the series. Fidel Calcagno wants to buy a Woonsocket-based pool maintenance and supply company. It’s a perfect fit for him, he says, because before moving to Providence two years ago, he owned a similar business in the Dominican Republic, and he has 20 years’ experience.

Being an entrepreneur comes naturally to him as well. Upon moving to the United States, Calcagno started a domain registration and Web site hosting business called Web Service America. He also works as a freelance translator for local health care and education clients.

But the real reason he wants to buy the pool supply company is independence. “I realized it’s a better way to make more money than being an employee for someone,” Calcagno said in an interview.

Purchasing a business is easier than starting one, he said, because an existing business has an established customer base, equipment and market knowledge. Calcagno said he would use the company’s existing attributes to expand the business. By offering new services, such as water filtration, reverse osmosis and water softening systems, he plans to turn the pool supply company into a year-round business.

But in order to obtain funds to purchase the business, Calcagno needs a business plan. He said he is attending the 12-week Primer Paso FastTrac business planning workshop at the R.I. Small Business Development Center because he will need a loan and a line of credit to cover the $200,000 to $300,000 purchase and startup costs.

At a recent class, marketing consultant and guest teacher Leon Mesa reminded the group of Latino entrepreneurs to focus their marketing on those potential customers for whom their products or services would fulfill a need.

Calcagno sees his market as not just swimming pool owners, but anyone who uses running water, whether at home or in a business.

“Water comes with a lot of impurities,” he said. “And hard water, when used in a washing machine and dishwasher, doesn’t react well with the soap. In the shower, it can damage the skin. And soft water is better for water heaters.”

Calcagno said he gained much of his knowledge and marketing skills through the experience of owning a water treatment company for three years.

If he is able to purchase the pool supply company, he said, he plans to spend much of his time on marketing – from cold-calling, to direct mail, to e-mail blasts, to door-to-door visits.

“I have expertise in this area,” he said. “I know about water treatment technically and I know how to sell it.”

As far as pricing and costs, Calcagno said, he has a basic idea of how much the products, equipment and services will cost, and of how to price them, but hasn’t established a financial statement that outlines the monthly income and expenses.

When asked how he would differentiate his product from others, Calcagno said he would focus on customer service as the No. 1 differentiator from the competition. He plans to offer full-year packages for pool maintenance, supplies and water filtration systems, and he will be on call 24 hours a day, he said.

He also plans to survey customers and find the best prices from suppliers. He plans to employ three people, including his 22-year-old son and 18-year old daughter, both of whom have prior experience working with him in the industry.

His dream, Calcagno said, is to be “successful and happy, to enjoy the job and make money while doing it.”

To Grow, Insurance Agent Finds He’ll Need To Invest

By Natalie Myers, Staff Writer Published 11/20/2006 Issue 21-32 Andres Almonte Started ABC Insurance 13 years ago. Since then he’s grown the business from 70 clients to 1,342 today. By the end of 2007 he would like to be serving 3,000 clients and have a second office in Providence fro his son, who recently obtained his insurance license. He sees the potential to grow, because everyone needs insurance. According to him people come to him because he provides more than just insurance. He provides translation services for his Latino clientele who make up the majority of his business and serves as mentor to small business owners when they need advise.

Providing that extra service has allowed Andres to build a close relationship with his clients and earn their loyalty.

He knows he could attract more clients, he said but he’ll need to hire at leas two more employees, bringing his staff to a total of five. He’ll also need to upgrade his office equipment and build some capital for marketing. Until now his marketing has depended on word of mouth.

That’s why Almonte is participating in the R.R. Small Business Development Center’s Primer Paso FastTrac 12 week business planning workshop.

His goal is to qualify for a loan so he can expand his business. After nine week of attending the class Almonte is half way to accomplishing his goal. He applied for a $35,000 micro enterprise loan from the Rhode Island Economic Development Corporation and is awaiting a response.

(Victor Barros, Urban Development Manager at the EDC, attributed the delay partly to the absence of the EDC’s bilingual account executive, who has been out of the office for weeks due to complications from a car accident.)

In addition to helping him apply for the loan, Almonte says the class is teaching him the importance of planning ahead, Previously he said, he was just selling and selling with no focus or plan for the future.

Though the business is profitable, he doesn’t have enough employees to make follow up calls and provide other services to meet clients’ needs.

In a recent class Almonte said, he also learned the importance of keeping track of cash flow. Though he already has an accountant and accounting software, it was good to hear the concept reiterated, he said.

Almonte has come a long way since he moved to Providence from the Dominican Republic in 1984. It took him about six years of working in a factory and taking English classes at night to prepare for the test required for his insurance license. Then he worked for John Hancock Insurance and Financial Services in Warwick for three year.

Today though he is not the only bilingual insurance agent in town, Almont said, he still n good position. I think one of the biggest advantages I have is the ability to communicate with people.

Software Creator Focuses On Tour Operators’ Needs

By Natalie Myers, Staff Writer Published 11/27/2006 Issue 21-33 Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.L Small Business Development Center this is the 10th article in the series.

Oscar Mejias has already developed his software, called TravelSot, to help tour operators manage hotel reservations, travel packages and contracts with vendors and travel agencies. He has tested it with tour operators in Orlando and Puerto Rico, and has gotten positive feedback.

Now, he is ready to take his project to the next level. He has almost completed a business plan, which he plans to pitch to the Slater Technology Fund.

Mejias said he knows how difficult it can be to get funding for a technology startup, given the fierce competition. That’s why he decided to participate in the RI. Small Business Development Center’s Primer Paso FastTrac 12-week business planning course, which is being taught in Spanish to reach out to the state’s growing Latino business community.

Mejias said he enrolled in Primer Paso because he wanted to be sure he was taking the right steps .to make his software company attractive to investors.

At a recent class, SBDC business counselor and Primer Paso instructor Tomas Avila stressed the importance of improving cash flow, which he said is the No. 1 issue for most small business owners.

“Most of the time, they are concentrating on what’s coming in and what’s going out, without understanding how to maintain positive cash flow,” Avila said.

As Mejias has compiled figures for his business plan, he has determined that he needs an operating budget of at least $150,000 to sustain the company for its first three years.

In addition, he will need startup funds to assist in developing his software for the commercial market specifically, to add self-installation and backup features, as well to translate the product into Spanish and Portuguese.

Mejias wants to market TravelSot to Latin American tour operators, because he sees a need in that market to replace old software.

For example, he said, much of the software he has seen in the industry was made to be used with Microsoft’s preWindows DOS operating system.

Mejias built TravelSot to be compatible with Microsoft Windows, and with MS Word and MS Excel.

And he added accounting and payroll applications to make the software a more comprehensive solution to travel companies’ needs.

For 14 years after earning his degree in computer engineering, Mejias worked in the IT department of an oil company in Venezuela. Then, in 2003, he moved to Florida.

He started developing his travel software while working part-time for a tour operator in Orlando. He continues to provide technical support for the company though he moved to Providence in August.

Mejias said he became interested in developing software for the tourism industry because his close connection through the operator in Orlando convinced him “it’s a big industry”.

“They manage a lot of money,” he said.

After heavily researching the industry he determined that with a quality product and successful marketing plan, he could turn his startup into a fairly lucrative business.

“This is a market that is growing,” Mejias said. If his dream comes true, he’ll “have millions.

Theater Gains Confidence To Seek Nonprofit Status

BY NATALIE MYERS MYERS@PBN.COM

By Natalie Myers, Staff Writer Published 12/9/2006Issue 21-36 Latinos are the fastest -growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.L Small Business Development Center This is the 11 Article in the series.

Francis Parra has been the driving force behind ECAS Theater, the state’s only Latino theater group, since 1997.

She says the empowerment of theater is what keeps her going as she runs the volunteer-based group in addition to working full-time as a kindergarten teacher at the International Institute Charter School in Pawtucket.

Theater is a necessary form of expression in every culture, Parra said. When she moved to Providence in 1996, there was no theater group performing in Spanish. That’s why she co-founded the Educational Center for the Arts and Sciences.

Since forming ECAS and establishing the ECAS Theater, Parra said, she has watched the actors rediscover them selves. Some are mothers, now working in factories, who used to act before mov ing to the United States.

Parra herself was an actor in the Dominican Republic before she moved to California in 1993. She studied acting under Germana Quintana, a well-known theater director in the Dominican Repub lic.

Pat-if’s doesn’t act much anymore. But she and the volunteers who keep the enterprise running want to take ECAS Theater to the next level finding a per manent venue for its productions, which draw 300 to 400 people on average.

"We know there is a demand," she said. "I need to prove this is going to be a good business."

Taking the R.I. Small Business Development Center’s Primer Paso 12-week business planning course, Parra said, has helped her understand how to formulate a business model and make financial projections for ECAS Theater.

Now she is applying for 501(c) (3) non profit status, with help from the Rhode Island Foundation, so ECAS Theater can apply for grants that will help the organization afford to rent a permanent location.

Before taking the class, which the SBDC teaches in Spanish, to reach out to Latino entrepreneurs, Parra had thought she would have to hire a consultant to cre ate the strategic plan for the 501(c) (3) application.

It would have cost $3,000, she said.

"[This course] has completely changed my outlook," Parra said. "I think it’s bet ter if we do our own strategic plan, because we know what we want to do. We know what happened at each play, what made us successful."

Tomas Avila, an SBDC business coun selor and the course facilitator for Primer Paso, said it is not unusual for people run ning a nonprofit to apply for 501(c) (3) sta tus while taking the course.

"They might have the idea, but because they aren’t used to planning, they don’t pursue it," Avila said.

"Once they take the class, they get used to the planning. Then the light bulb goes off and they say Oh, I can do this.’"

Parra said her main goal is to turn the theater into a nonprofit that can support itself through a combination of sub scriber-type memberships and grants. a combination of sub scriber-type memberships and grants.

ECAS Theater now performs six to seven weekends per year, usually in March, she said, but could do more per formances if it had its own space.

The average play costs $8,000, she said, and is funded through private donations from the Rhode Island Foundation, Citizens Bank and small Latino-owned businesses.

Parra’s second goal is to build income for the theater through drama classes for youth.

Over the past nine years, through ECAS, she has taught drama sporadical ly in Spanish to 6-to 14-yearolds who oth erwise might not be exposed to the art form because they lack English skills. She said she wants to make the class a permanent offering because she has seen how it changed the lives of her students. One is now studying film in Los Angeles.

"It is inspiration for them," Parra said. "Theater is going to be with them for the rest of their lives."

Primer Paso’s New Grads Already See Improvement

By Natalie Myers, Staff Writer Providence Business News Published 12/16/2006 Issue 21-36

Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News followed 12 people through a 12week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the last of 12 articles in the series.

For the entrepreneurs who participated in the R.I. Small Business Development Center’s first Primer Paso FastTrac program, the graduation ceremony was more than just a celebration.

PBN PHOTO BY STEPHANIE EWENS ALL DONE: A dozen Latino It was a validation of their desires to grow their existing small entrepreneurs celebrated their graduation businesses or start new ones. this month from the 12-week Primer Paso course.

“We are 12 people with 12 different ideas for business,” Oscar Mejias told his classmates at the event. “We are different in our thinking, but with the same dream.”

Each entrepreneur walked away from the experience with a changed perspective on how to start, operate and grow a business, he said. And many already have applied what they learned in their businesses.

Andres Almonte said participating in the free, 12-week business planning workshop – taught in Spanish – has changed his ideas on how to best differentiate his business, ABC Insurance, from its competitors.

Since taking the first class on Sept. 13, Almonte said, he has begun to hold weekly meetings with his three-employee staff to discuss ways to improve customer service. One offshoot of those meetings has been the adoption of customer-service follow-up calls.

His firm also has started marketing to existing clients who have let their car, homeowner’s or life insurance policies expire.

In addition, Almonte has begun seeking a microloan from the R.I. Economic Development Corporation, so he can hire more employees to manage his growing client base.

Miriam Garcia, another participant, said she believes she was able to qualify for a $50,000 loan from Credit Union Central Falls as a direct result of her participation in Primer Paso.

“They liked my business plan,” Garcia said, adding that she had used the SBDC’s services to help her compile the business plan while taking the class.

Learning how to manage cash flow also helped her, she said, especially when communicating with her accountant. Garcia is midway through opening a meat market, called Fiesta Meats, in Central Falls.

Wilfredo Chirinos said he has noticed an increase in customers since he began taking the workshop.

Its marketing lessons changed the way Chirinos markets his computer repair and maintenance business, PC Repair & Network, he said. Now he offers coupons and discounts on services in order to generate business.

Tomas Avila, an SBDC business counselor and the class facilitator, said he estimates 52 percent of the business-owning participants enhance their existing businesses while taking Primer Paso. He estimates 30 percent of those who wanted to start a new business actually will.

Those statistics are based on past Primer Paso participants, whom Avila taught when the program was part of Progreso Latino’s services, before the SBDC picked it up.

Asked how he measures the growth of his students’ abilities from when they start taking the class to graduation, Avila said, “I’ve come to accept the fact that the most measurable aspect of the participants is in their change of mind, as to how they view their business and how they implement change in their business ideas or their existing business.”

Avila cited Veronica Martinez as an example. When she started Primer Paso, he said, she had been thinking of starting a life-coaching or spa business with a friend. The class helped her to refocus her attention on a more viable business model.

Now, Martinez is taking serious steps to open a translating business, because it is something she already has the knowledge and capacity to do, he said. It will be a professional extension of the translating services she already provides for her community. “At the beginning of the class, I was lost,” Martinez said. “Now, I know I’m going to have to sit down and do the business plan. I’m going to need several people to help me. … It’s not something I’m going to jump into without planning.”

Avila said he will follow up with each participant through scheduled appointments. He also will invite them to participate in Primer Paso alumni group meetings, so they will continue networking with each other and will meet new graduates of the class.

John Cronin, executive director of the SBDC, said he hopes the Primer Paso participants will return for a series of business-to-business forums as well. The forums would give them an opportunity to network with a wider array of entrepreneurs, not just with fellow Latinos.

“By building a strong network of Latino entrepreneurs, we can connect the mainstream entrepreneurs with them to make [all of the state’s] businesses stronger,” Cronin said.

“The state needs to take advantage of its creative entrepreneurs. … It’s our job to connect them.”

Latino Entrepreneurs Looking To Succeed Editorials Published 12/16/2006 Issue 21-36 For three months, readers of Providence Business News have followed the experiences of a dozen Latino entrepreneurs as they made their way through a R.I. Small Business Development Center program designed to help them succeed.

The challenges they face are daunting. In addition to a language barrier that serves to isolate them, some lack basic business skills and don’t know how to find and gain access to capital.

What our readers have also come to realize is that this is not just an individual problem for the immigrant business men and women – it is a brake on the state’s economic development.

According to the U.S. Census Bureau, Latinos represent the only demographic in the state that has gained population over the last five years. Not surprisingly, Latino-owned businesses are also growing, and now include more than 3,400 enterprises, with sales exceeding $210 million annually.

The only rational response to these facts is to reach out in a concerted way to the Latino business community with partnerships and training programs that will help them not just succeed, but thrive.

The Latino business community is hungry for such opportunities, and many would-be entrepreneurs are doing their part to reach out themselves (the RISBDC’s next class for Spanishspeaking entrepreneurs starts Jan. 31). But they need to see the larger community reaching back to them.

PBN Primer Paso Assesment How will I follow up?

Once the Primer Paso program is over, I follow up with each of the participants by consulting with them in a regular basis regarding their business or their ideas on a schedule basis. The participants will also have access to me and all the services provided by the Rhode Island Small Business Development Center to help them.

The other segment of the program that I am activating with this class is the Alumni Group. This group will meet quarterly to network, share resources, and learn from guest speakers and presentations. The first schedule meeting of this group will be March 13, 2007 which will mark the 6th month since the class started on September 13th, 2006.

Statistics Regarding participants starting their business, I like to mention that since the inception of the program we have tried to focus recruitment of existing business regardless of size. Therefore most of the participants 75% in this class are already in business even when they initially said they did not own a business, base in their idea of what a business is. The statistics that I have collected based on the 2 years of the program are as follow: 52% of participants start or enhance their business after taking the class.

30% of graduates start a business

Measurement As for measuring their growth during and after their participation in the program, I use many of the established formulas such as revenue, or the development of their business plan, but I’ve become to accept the fact that the most measurable aspect of the participants is the change of mind as to how they view their business and how they implement change in their business ideas or their existing business.

As an example I’ll refer to Veronica Martinez, who came to the program with the idea of starting a “life Coach” business based on a partnership she was to establish with a friend of hers, but once she started the program and try to get her friend involved in the training became aware that she needed to concentrate her efforts in a business she was already doing informally which to is translating for Latino customers.

The other example I can mentioned is Maria Alexandra Izurieta who participated in last year’s program, and was considering selling her business and moving to Atlanta and after taking the program and our

Andres Almonte Started ABC Insurance 13 years ago. Since then he’s grown the business from 70 clients to 1,342 today.

By the end of 2007 he would like to be serving 3,000 clients and have a second office in Providence fro his son, who recently obtained his insurance license. He sees the potential to grow, because everyone needs insurance. According to him people come to him because he provides more than just insurance. He provides translation services for his Latino clientele who make up the majority of his business and serves as mentor to small business owners when they need advise. Providing that extra service has allowed Andres to build a close relationship with his clients. Andres plans to expand his personnel to 5 and needs to upgrade his equipment and is presently applying for the Rhode Island Economic Development Corporation Micro Business Fund.

Fidel Calcagno Fidel Calcagno wants to buy a Woonsocket-based pool maintenance and supply company. It’s a perfect fit for him, he says, because before moving to Providence two years ago, he owned a similar business in the Dominican Republic, and he has 20 years’ experience. Being an entrepreneur comes naturally to him as well. Upon moving to the United States, Calcagno started a domain registration and Web site hosting business called Web Service America. He also works as a freelance translator for local health care and education clients. But the real reason he wants to buy the pool supply company is independence.

Angela Canelas Angela Canelas arrived to the United States back in 1975 with her parents to the city of New York where they resided until she moved to Rhode Island 6 years ago. According to Angel she has always wanted to own her own business, but did no have the support of her husband and she did not wanted to try it by herself. She finally got the encouragement to pursue her dream, after she started taking ESL classes at the Dorcas Place and got inspired to learning again and when she heard in the radio about the Primer Paso program she decided to apply and get the necessary knowledge. She presently has a business selling Avon products, but she has not treat it as a business, but instead as pocket change source of income. Her daughter helps her with the business and she has also developed a client base of her own. Angela also sales clothing to subsidize her business income.

Wilfredo Chirinos Wilfredo Chirinos’ computer repair business, PC Repair & Network, used to be a one-man enterprise, he moved to Providence from Venezuela in 1994.He didn’t need much capital to start it – just a computer with Internet access, some basic tools and reference materials, and a small office. Most of his customers are referrals from friends or family, he said. That’s how he’s created a customer base while spending little money on marketing. And he’s managed to stay in business for five years. He’s planing to grow his business and expand into software development.

Cesar Cuevas Cesar Cuevas has a vision. He would like to have a Papiajo Frituras food vending truck or restaurant in every city and town in Rhode Island. His specialty product is a plantain basket stuffed with meat or vegetables and fried. It’s called “papiao.” Cuevas started the business three years ago, by purchasing a food vending truck and equipment. He operates in the evenings, from 6 p.m. to 1 a.m., near the corner of Broad Street and Prairie Avenue in South Providence. Cuevas said his client base is mostly Hispanic families and young adults. And they tell him what they want. He recently started making larger orders of papiao for parties and other events, because his product works well as an appetizer.

Miriam Garcia Miriam Garcia fondly remembers her father’s “social club” in Brooklyn. She can recall the pride he took in maintaining the club’s juke box, pool table, bar and display cases. She remembers the way he interacted with customers. That was before he died and her mother took Garcia, then 16 years old, and her four sisters to Puerto Rico. Garcia lived there for about 10 years before returning to the U.S. mainland.

Now she has her own children – one 17, the other 13. She assesses new students for the Providence public schools to determine where they will be placed. But like her father, she wants to run her own business, and so, with two partners, she is opening a meat market in Pawtucket. She also hopes to open a day care center, after she retires from her school district job.

Sandra Lake Sandra Lake started the Extraordinary Woman Awards because she admires the many women who, like her, came to the United States from other countries and are improving themselves and their communities here. Lake established the program as a nonprofit almost immediately after moving to Providence in 1999. Each year, it honors nine local women and one woman abroad who have achieved personal or professional improvement in one of 10 categories. Now, after seven successful years, Lake said, she is ready to expand the nonprofit to add workshops and seminars and help women improve their personal and professional lives year-round. But first, she’ll need more capital. That’s why she is taking the R.I. Small Business Development Center’s Primer Paso FastTrac business planning workshop.

Veronica Martinez Veronica Martinez has been providing translation services and filling out immigration paperwork for people in the Latino community for 10 years now. It is something she does at home at night and on weekends, as a favor. Her dream is to turn that sideline into a full-time, full-service translation business that also provides notary services, income-tax return preparation, immigration paperwork and an insurance brokerage – all bilingual.

Oscar Mejias Oscar Mejias is an Information Engineer originally from Venezuela who use to work for the Venezuelan oil company Petroleos de Venezuela, S.A. (PDVSA) until 3 years ago when President Hugo Chavez changed the personnel in such industry and fired the existing personnel that did not agree with his government. 3 year ago he was contracted by a major tourism operator in Florida to work in the replacement of its outdated MS-DOS booking and selling program with a Windows based program that would allow the operator faster and more efficient operation of the business, while maintaining the integrity of the original program. Oscar completed such project successfully and the operator transfer to the new window based program was successfully integrated into its operations and still performing according to the agreed specification and continues to improve such program in a contractual fashion.

Now that Oscar resides in RI, he is interested in obtaining the technical assistance to package the travel reservation program by establishing relationships with a Graphic Designer that will help him developed the branding of the software and develop the commercialization of the product.

Francis Parra Since 1997 ECAS Theater has earned a reputation as New England's premiere Latino theater company by presenting quality, affordable Spanish-language theater to audiences of all ages and backgrounds.

ECAS Theater has also hosted touring productions from the Dominican Republic, Miami, Oregon and New York's prestigious Repertorio Español. As a non-profit, volunteer-based theater company, ECAS depends on the generosity of individuals, foundations and private sponsors to sustain its programming.

Please click here if you would like to support our work. Francis Parra, Artistic Director received her degree in advertising and art from APEC University in the Dominican Republic, and studied theater and acting under Germana Quintana and at the prestigious Casa de Teatro. She has performed extensively

throughout the Dominican Republic, including several productions at the Teatro Nacional, the nation's premiere theatrical venue. Francis has produced and directed more than a dozen plays in Rhode Island and has directed ECAS theatrical programs since 1997. She is a teacher at the International Institute Charter School in Pawtucket, Rhode Island.

Domingo Tejada Domingo Tejada knows construction. He started building and fixing houses with his uncles and cousins in the Dominican Republic when he was 17. So, when he moved to Providence in 2001, Tejada decided to continue in the business he’s known for 21 years. A year later he met his fiancée, Rosa Vizcaino, and they decided to start their own construction business, D-N-R Building and Construction Inc. (The D-N-R stands for Domingo ’n’ Rosa.) Things were OK for about three years. They put up vinyl siding and did interior remodeling – putting up wallboard, installing floors, installing cabinets, sinks, windows and doors. Tejada did the manual work, while Vizcaino handled the administration. Then, “in the middle of 2005, things went haywire,” Vizcaino said. People were rejecting contract proposals because they thought the company’s estimates were too high.

Program Guides Latino Business Owners Business Digest Providence Journal Friday, February 9, 2007 The Rhode Island Small Business Development Center at Johnson & Wales University has launched the “Primer Paso-Fast-Track” Spanish business training program at Progreso Latino in Central Falls. The program began on Feb. 1 and will run through April 26. The purpose of the program is to help the small-business planning process by providing an initial overview, assessment and mapping plan for the Latino business owners, entrepreneurs and/or smallbusiness loan applicants. Primer Paso-Fast-Trac started in 2004 as part of the Progreso Latino Business Development Center services, as a partnership among Progreso Latino, Johnson & Wales University and Milenio Associations LLC to develop and offer the Spanish version of the nationally renowned Kaufman Foundation’s Fast Trac program in Rhode Island.

PBN’s Myers Joins 5 Others In Receiving Metcalf Award

By Mark S. Murphy PBN Editor Posted May. 21, 2007

Providence Business News Staff Writer Natalie Myers was given one of seven Michael Metcalf Awards for Diversity in the Media by Rhode Island for Community & Justice this morning at the Marriott Providence Downtown hotel.

Myers was recognized, in the print weekly/bi-weekly category, for her series of stories on the Primer Paso business-development program hosted by the Small Business Development Center at Johnson & Wales University.

Primer Paso is a Spanish language program that uses weekly classes to help entrepreneurs develop new business ideas as well as improve existing businesses. Myers attended all 12 classes last fall, and the subsequent series of stories had a significant effect on the businesses that participated.

According to Tomas Avila, the director of the program, subsequent to its publication, businesses that participated have been able to garner $200,000 of capital to build their businesses, while even more potential financing partners have approached the Primer Paso graduates.

Other winners honored this morning included: • Deb Ruggiero, in both the radio and television categories, for the series on WPRO-AM and Rhode Island PBS, “Rhode Island Amazing Women.”

• Joseph Fitzgerald, daily print, The Woonsocket Call, “The New Americans.”

• Denise Dowling, monthly print, Rhode Island Magazine, “The Reluctant Warrior.”

• Reza C. Clifton, technology of the new millennium, rezaritesri.com, “Jerusalem Women Speak, R.I. Woman Answers.”

• Paul Davis, history coming to life, The Providence Journal, “The Unrighteous Traffick.”

The Metcalf Awards were established in 1998 to honor Michael Metcalf, late publisher of The Providence Journal, and to showcase the commitment of journalists and media to promote understanding and respect for all members of the Rhode Island community.

Primer Paso

Read PBN reporter Natalie Myers’ award-winning Primer Paso series: ‘Primer Paso’ a first step for Hispanic firms, Sept. 25, 2006.

An entrepreneur’s dream requires some homework, Oct. 2, 2006.

Entrepreneur is gearing up to grow his repair business, Oct. 9, 2006.

Lead-safety trainer aims to open interpreting firm, Oct. 16, 2006.

Couple want to build their business right this time, Oct. 23, 2006.

Big dreams begin with Latino plantain treats, Oct. 30, 2006.

An accomplished Latina wants to mentor others, Nov. 6, 2006.

Immigrant sees potential for year-round pool firm, Nov. 13, 2006.

To grow, insurance agent finds he’ll need to invest, Nov. 20, 2006.

Software creator focuses on tour operators’ needs, Nov. 27, 2006.

Theater gains confidence to seek nonprofit status, Dec. 11, 2006 Primer Paso’s new grads already see improvement, Dec. 16, 2006.

Tomas Alberto Avila, Rhode Island Small Business Development Center (RISBDC) Administrator Facilitator Primer Paso FastTrac and Business Counselor with award winning reporter Natalie Myers of Providence Business News.

Tomás Ávila Certified as Fast Track New & Growth Venture Facilitator, Business Coach and Administrator Providence, RI. September 20, 2007 – Tomás Ávila Business Counselor at Rhode Island Small Business Development Center became Certified Fast Track New and Growth Venture Facilitator, Business Coach and Administrator. Designed to provide entrepreneurs with business insights, leadership skills and professional networking connections so they are prepared to create a new business or expand an existing enterprise.

FastTrac is a program of the Ewing Marion Kauffman Foundation, the country’s leading philanthropic organization focused on entrepreneurship. Avila successfully completed FastTrac Administrator Orientation and Certification at the 2007 Association of Small Business Conference in Denver, Colorado, last week.

He was also trained as a facilitator for FastTrac Growth Venture Administrator, designed to support entrepreneurs. Avila was first certified as First Step FastTrac Primer Paso program in 2004, and has been administering and facilitating the program since then. This program guides entrepreneurs as they develop a business concept and learn how to obtain the funding necessary to launch or grow their venture.

Expert business consultants and staff at the RISBDC have already been helping entrepreneurs launch and grow companies for more than 23 years. RISBDC will soon schedule FastTrac workshops, providing local business owners with new entrepreneurial education opportunities.

More than 165,000 participants have completed FastTrac classes in the United States alone.

Today, FastTrac programs are being provided by 300 partner organizations in 49 states domestically, as well as in Canada, Australia and Russia. FastTrac was first offered 20 years ago in Los Angeles by the University of Southern California’s Entrepreneurship Program. The Ewing Marion Kauffman Foundation became a major supporter and funder in 1993. FastTrac is a comprehensive entrepreneurship-educational program that provides entrepreneurs with business insights, leadership skills and professional networking connections so they are prepared to create a new business or expand an existing enterprise.

The Rhode Island SBDC offers one-on-one business management counseling to existing and prospective small business owners and managers; training on business topics; loan packaging, and access to business information. Services are offered through regional centers located throughout Rhode Island.

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Tomas Alberto Avila Awarded 2007 Rhode Island SBDC State Star at the National Conference of the Association of SBDCs Providence - During the National Conference of the Association of Small Business Development Centers (ASBDC) held in Denver, Colorado, September 17-19, Tomas Avila was recognized as the 2007 Rhode Island State Star for his outstanding contribution and creative excellence with the Small Business Development Center www.risbdc.org at the Johnson & Wales University www.jwu.edu.

"Tomas's commitment to his clients and the minority business community of Rhode Island is nothing less than extraordinary,” said State Director John Cronin. “He's a valued asset of our organization and I'm thrilled to have him as a network member of the Rhode Island SBDC." Rhode Island’s “State Star” was selected from among the entire state’s Small Business Development Network. A “State Star” must demonstrate exemplary performance in assisting Rhode Island’s Small Business Development customers; and show a strong commitment to the small business community they serve.

The State Star Award is presented annually to one employee in the SBDC network. The Association of Small Business Development Centers (ASBDC) annually awards a State Star to outstanding SBDC employees who are exemplary performers, make significant contributions to their state or region and show a strong commitment to small business.

"It is an honor to accept this award," said Avila, "and to have the opportunity to help so many people achieve the dream of starting and succeeding in their own business."

Avila has been with the center since 2006, performing a variety of duties, including instructor, Primer Paso Administrator, Business Counselor and Minority Business Specialist. Tomas was selected for his outstanding accomplishments and contributions to his region’s SBDC and to the entire Rhode Island SBDC’s network. Avila is described as “engaging, forward thinking, thoughtful and progressive” by his network colleagues.

He has been proactive in bringing business development services to the growing Hispanic clients in his region; assisted in meeting training and participation goals for the program; facilitated in the Primer Paso FastTrac feasibility planning program, which targets citizens of the state’s

Hispanic business community and provides assistance to entrepreneurs interested in developing the skills necessary to successfully form a business; and has been vital in the implementation of this program in the in Rhode Island SBDC. Tomas Avila’s hard work and dedication is an asset to his community, colleagues and the entire Rhode Island SBDC network. With his guidance and knowledge, he has effectively helped countless entrepreneurs in managing their small businesses, starting new businesses, increasing sales and creating new jobs for Rhode Island.

The Rhode Island SBDC offers one-on-one business management counseling to existing and prospective small business owners and managers; training on business topics; loan packaging, and access to business information. Services are offered through regional centers located throughout Rhode Island. The Rhode Island SBDC is a state-wide network of 5 service locations, satellite centers, and outreach sites. For further details, go to www.risbdc.org.

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Avila Honored for SBDC Services to R.I. Latinos Posted Oct. 22, 2007 Rhode Island & Massachusetts News Briefs

PROVIDENCE – Tomas Alberto Avila of the R.I. Small Business Development Center at Johnson & Wales University has been honored by the Association of Small Business Development Centers with the 2007 ASBDC Rhode Island State Star. The award, for what the group called “his outstanding contribution and creative excellence,” was presented at the ASBDC’s 2007 National Conference in Denver.

Since joining the R.I. SBDC last year, Avila – administrator of the Primer Paso FasTrac businessfeasibility planning program – has also served as an instructor, business counselor and minority business specialist.

“Tomas’ commitment to his clients and the minority business community of Rhode Island is nothing less than extraordinary,” SBDC Director John Cronin said in a statement. “He’s a valued asset.”

The State Star is presented annually to one employee in each state’s SBDC network; honorees must be “exemplary performers [who] make significant contributions to their state or region and show a strong commitment to small business.”

Avila Honored For Bringing SBDC Services To Latinos Providence Business News Posted Oct. 16, 2007 DENVER – Tomas Alberto Avila, of the R.I. Small Business Development Center at Johnson & Wales University, has been honored by the Association of Small Business Development Centers, with the 2007 ASBDC Rhode Island State Star. The award, for what the group called “his outstanding contribution and creative excellence,” was presented at the ASBDC’s 2007 National Conference in Denver.

Avila is the administrator of the R.I. SBDC’s Primer Paso FasTrac business-feasibility planning program, which was the subject last year of an award-winning series by Providence Business News staff writer Natalie Myers Since joining the SBDC last year, he also has served as an instructor, business counselor and minority business specialist. Network colleagues describe him as “engaging, forward thinking, thoughtful and progressive,” the local SBDC said.

“Tomas’ commitment to his clients and the minority business community of Rhode Island is nothing less than extraordinary,” state SBDC Director John Cronin said in a statement. “He’s a valued asset of our organization, and I’m thrilled to have him as a network member.”

The State Star is presented annually to one employee in each state’s SBDC network. The ASBDC says it presents the awards to “exemplary performers [who] make significant contributions to their state or region and show a strong commitment to small business.”

With Primer Paso and other programs, Avila “has been proactive in bringing businessdevelopment services to the growing Hispanic clients in his region,” the SBDC said. “It is an honor to accept this award,” Avila replied, “and to have the opportunity to help so many people achieve the dream of starting and succeeding in their own business.”

Immigrant Startups Are Maturing In Nature Posted Dec. 24, 2007

PBN EDITORIAL

It is a well-established pattern played out in every new wave of immigration – the first generation opens businesses to serve their countrymen. And the easiest businesses to get started and keep going are those that address the basics – groceries, cleaners, retail shops.

But the next generation becomes the connective tissue that helps to integrate the new Americans with the rest of the country and unlock the full potential of those who came here looking for a better life.

As Providence Business News’ Focus on Minority Business this week shows, the second generation from the immigrant community is reaching out and serving as a bridge to the wider culture – and the broader business community. And they are doing it with professional services such as accounting firms, marketing businesses and the like.

Thankfully, the state’s economic-development agencies are very active in reaching out to these new businesses and providing guidance and capital. It won’t be long before today’s immigrants are tomorrow’s successful entrepreneurs and leaders. •

Workshop Draws Fledgling Hispanic Entrepreneurs

By Natalie Myers PBN Staff Writer Posted Dec. 10, 2007

SMALL BUSINESS

In this follow-up to a 2006 PBN series on the R.I. Small Business

Development Center’s Primer Paso business planning workshop for Latino entrepreneurs, we see how participants are doing a year later and how the workshop has grown.

ECAS Theater, the state’s only Latino theater group, has taken great financial strides since taking the Primer Paso workshop last winter, artistic director Francis Parra says.

The theater is still waiting to receive nonprofit status from the Internal Revenue Service, a process that can take two years, Parra said. But the volunteer-based group has received a $130,000 grant from Hispanics in Philanthropy, a global nonprofit dedicated to strengthening Latino communities by increasing resources for the Latino and Latin American civil sector.

About $20,000 is being used to hire a consultant to develop a plan to raise funds for a permanent location for educational classes and performances, Parra said. The rest will be used for the theater’s first-ever salaried staff and for technology improvements, such as development of a better Web site.

The theater group uses space at Rhode Island College to conduct theater classes and perform plays and this year began performing at the Sandra Feinstein-Gamm Theater in Pawtucket.

“From Primer Paso we understood that we definitely needed a strategic plan,” she said. “Having the consultant is good. We don’t have time to be writing the plan in good English.”

In addition, through contacts at the R.I. Small Business Development Center at Johnson & Wales University, which facilitates the Primer Paso business planning workshops taught in Spanish, Parra was able to get help organizing ECAS Theater’s first fundraising gala dinner in October.

“We never realized we had the tools to have a gala dinner,” she said. “This is very important for public relations.”

Though the theater didn’t raise much money from the actual event, Parra said, 200 people attended and as a result new institutions are supporting the theater.

While ECAS Theater is growing, results have been mixed for the rest of the 12 graduates from the 2006 Primer Paso class. Some have opened and closed businesses, others are struggling to survive.

And most are still trying to raise money. Tomás Ávila, Latino business developer at the RISBDC and instructor for the classes, says that’s not a bad thing because it saved them from going into debt.

The 12 graduates together gained access to more than $200,000 in capital, Avila said.

Miriam Garcia, who opened Fiesta Meat Place, a meat market in Central Falls, received $85,000 in loans from Navigant Credit Union, he said. But she and her business partners have since closed the business because interest on the debt financing they received was more than the revenue they were generating.

Andres Almonte, owner of ABC Insurance on Atlantic Avenue in South Providence, was able to secure a $20,000 micro-enterprise loan from the R.I. Economic Development Center, which helped purchase new equipment, such as a fax machine, copier and three computers.

The money also helped upgrade software on existing computers and open a second office for his son, also a licensed insurance agent, on Manton Avenue in the Olneyville neighborhood of Providence, he said.

But his business is suffering this year compared to last year, Almonte said.

“The economy is a little bit down,” he said. “So many of my clients are moving out of state …

People say because we are the smallest state we are feeling the economy more … this year less people are buying new cars and getting insurance.”

As for the workshop itself, it has expanded since last year, he said. It is now offered in two locations – at Johnson & Wales University downtown and Progreso Latino in Central Falls – and it is offered in the spring and the fall, rather than just the latter.

Demand necessitated the expansion, Avila said. On Dec. 12, 47 Latino entrepreneurs were to graduate from the latest Primer Paso workshop. Total participation has grown 70 percent since last year.

Oscar Mejias, a 2006 Primer Paso graduate, says the program helped him develop confidence and a plan for his business. He’s launching tour operator software he developed at the Travel Industry Association of America’s International Pow Wow May 2008 in Las Vegas.

“Definitely the knowledge I got from Primer Paso led me to have a better vision about the future of my business,” he said.

Primer Paso Three Year Review Interview 2005-2007 How has Primer Paso grown as a program since last year? I think last year when I covered the program it was only offered at J&W? Now it is offered at Progreso Latino as well? Was it offered only in the winter last year? Did you add a spring program this year?

Yes indeed the program has grown 70% compare to last year and as you remembered when we started last year we only had the program at Johnson & Wales in Providence and due to increased of interested participants we were force to expanded. As part of the expansion of the program we made the decision to expanded it to Progreso Latino in Central Falls due to the large number of individuals from the Blackstone Valley region interested in participating in the program, as well as a rejuvenated partnership with Progreso Latino under the leadership of Ramon Martinez and the establishment of a satellite office in their site.

How much has participation increased from 2006 to 2007? How many participated in 2005, 2006, 2007?

Since the program was first offered the program in the fall of 2004 with self imposed limit of 15 participants, the interest and participation has been increasing constantly having had to start a Spring program in 2005, with the same number of 15, but the demand kept increasing as word spread around the community and the decision was made to increase the attendance to 25 participants starting in the Fall of 2006, which was the first year under the umbrella of the SBDC which once again force us to develop parallel programs in the Spring of 2007 when we started the additional program at Progreso Latino increasing the participants to 50 per term for a total of 100 participants per year.

If participation has grown, why do you think it has grown?

The reason the program has grown so much is due to positive word of mouth the graduates of the program have shared with members of the community of their positive learning experience as participants of the program and the results in changing the way they go about planning and starting their business and in the case of existing business owners, they share having learn many business related strategies that they were not aware of during the start of their business, and have been provided with new tools manage and grow their business. And the obvious reason for such spreading of the success of the program is the great need that exist in the Latino business community and a reflection of why Rhode Island tied Georgia for second place with a 56% growth in the 2002 Economic Census, second only to New York state.

Has the program increased participant’s access to capital? How does the class help them get access to capital?

After 4 years and 150 graduates we have began to see the participants starting to have access to capital on a more consistent fashion. The program helps the participants understand in order to improve their capital accessibility, they must begin with a feasibility analysis of their business ideas or their existing business and eventually transform their feasibility analysis into a fundable

business plan and in order to accomplish that, they have become aware that they need to become more verse in business and financial planning. The other way the program is helping the participants increase their access to capital, is by involving some of the more successful participants of the program with the opportunity to be presenters and our Business to Business Investment Forums started back in March and introducing them to the Venture Capital world via this event and starting in 2008 they will have the option to strengthened their possibilities through and Investor Ready training seminar that has been develop by the SBDC How much capital were participants in the winter 2006 class able to get access to?

The graduates of the 2006 class have been able to obtain about $200,000 in total capital; the biggest chunk of it having been Miriam Garcia who obtained a total of $85,000 in capital from Navigant Credit Union, Andres Almonte received $20,000 in a micro loan from the RIEDC Micro Loan program.

Why did SBDC decide to work with Progreso Latino to have another program there? I know when you originally started Primer Paso it was with Progreso Latino.

Originally when Primer Paso FastTrac started as partnership between Johnson & Wales University and the Progreso Latino Economic Development Center, in cooperation with the students from that University’s International Center for Entrepreneurship. The training aims were to facilitate the small business planning process by providing an initial overview, assessment and mapping plan for the potential entrepreneur and/or small business loan applicant.

Coincidently in 2006 Progreso Latino went through a change of leadership as well as the Larry Friedman Entrepreneur Center which put the program of jeopardy but fortunately at the same time Johnson & Wales University won the bid for the Small Business Development Center and once John Cronin became the Executive Director, he made the decision to incorporate Primer Paso as a program of the SBDC and to strengthen the relationship with Progreso Latino under the new leadership of Ramon Martinez and thereby expansion of the Program to Central Falls Has the class changed since last year? Have you added anything to it?

The curriculum of the program is very much standardize by the Kauffman Foundation, therefore the content remains the same throughout. Where I have the flexibility to change is the facilitators of the 12 different modules, and I have invited a diverse group of local professionals to facilitate some of the classes, as well as adding more local information to the mix.

Have you noticed a difference in the types of entrepreneurs you’re seeing in the classroom?

Are they coming more prepared than previous classes? What kinds of business ideas are you seeing most?

Regarding differences in the participants since the start of the program, just like the growth of the program the type of participants has evolved with time and their eagerness to learn and develop their business plan has also evolve. One of the big differences that I have notice in that evolution is the increase participation of resident immigrants that have been in the country for a

long period of time and bee educated here, but did consider starting a business or if they did, they did not know where to start, as well the increase participation of Latin American Professionals that previously did not participated in the program, creating a very good mix of individuals with the same goals of starting or growing their business.

As far as ideas relates, it’s another change that has taken place. Initially the majority of the participants were in the retail business sector and restaurants were a very large segment of ideas among participants. Starting with the spring program I have witness an increase in professional services such as Accounting, Interpreting and Financial to name a few as well event planning, gourmet food and tutoring services.

Do you see more cohesion among Latino entrepreneurs since the classes are becoming more popular, meaning are you seeing greater networking between entrepreneurs? Are they sharing best business practices? Are they joint-marketing their businesses? Are they doing cross promotions?

Yes indeed. It’s quite interesting receiving comments from some the presenters about seeing many of the program participant in their networking circles and seeing their increase interest to network with other business people. One of the advises that I give every class is that in order to improve our communities, we need make sure that the rotation of a dollar in our community increase by sharing best practices and it has had a positive acceptance among the participants and therefore they have establish relationships that allows them to share best practices.

Joint marketing and promotion is one of the areas that need to be develop. There’s been some of it at the grass root level such as the sponsoring of entertainment events.

Also, do you see these entrepreneurs expanding outside of their comfort zone? Are they seeking customers outside the Latino community to expand their business? If so, why and How/why does the program encourage them to do that?

Interestingly enough one of the graduates from the spring class who started a natural medicines boutique was surprised to find out that the majority of his clientele were from the general community instead of the Latino community, and was forced to change his marketing material to be bilingual. One of the goals of the program is to help the entrepreneurs get out of their comfort zone and venture into other general community. As you may recall from last years program one of advise to participants is that they need to evolve from being “Latino business” to being “business owners” the reason being that the Latino community is only 12% of the Rhode Island population, therefore by remaining in their comfort zone they are only exploiting 12 cents out of every dollar worth of business and in order to compete for the other 88 cents, they need to venture outside of their comfort zone. The other compelling reason that we encourage them to do it is because the major corporations are now vying for the business base which is the Latino community and therefore they need to expand their territory.

Primer Paso Spring 2008 Graduation PROVIDENCE – Wednesday May 14, 2008 Graduates of the Rhode Island Small Business Development Center at Johnson & Wales University 2008 Spring Primer Paso FastTrac program will receive certificates of completion.

The program graduates, their families and friends will gather at Johnson & Wales University Larry Friedman Center for International Entrepreneurship for their graduation. But they won't be there for JWU's traditional ceremony.

The 26 adults who will be graduating want to start their own businesses, or are planning to grow their existing business and for 12 weeks, they've gathered at JWU for a class designed to teach members of the Latino community how to do that. The commencement will herald the end of the program and the skills the budding business owners have gained.

The entrepreneur, the lifeblood of American commerce and their transformative influence on their family and community is the focus of Primer Paso/First Step FastTrac, a bilingual training program, established to provide small business education, support and networking opportunities to prospective and existing Latino business people.

The basic idea behind the program is that enduring social progress for Rhode Island’s minority communities can only be achieved through economic development. Economic development, the premise concludes, can only be achieved through intensive training: hands-on instruction, partnerships with educational institutions and the support of local lenders and government officials.

The program’s 12 nighttime workshops, covering such topics as finance, market research, pricing, product/service and cost-pricing strategies, was taught in by Tomás Ávila, Business Counselor and Administrator of the program who has been with the program since its development in 2004.

“For me this experience of being in such an interesting class has been very helpful, and allowed me to learned many concepts about starting my business, and got me to understand others that I did not understand.” Said Katherine Denise a young artist planning to start specialty greeting cards business.

According to Lydia Perez, Executive Director of the Puerto Rican Institute for the Arts and Advocacy, “professional consultation and business planning support are the program’s most valuable resources”.

"Here you can test the feasibility of your idea with professionals before you spend a dollar."

John Cronin, executive director of the SBDC, said “Primer Paso FastTrac is important to the SBDC, because the Hispanic population in Rhode Island has grown 27 percent during the past five years”, “it’s our responsibility to help the Hispanic entrepreneurs and existing business owner improve their busimess”. Cronin sid According to the U.S. Census Bureau, Latinos represent the only demographic in the state that has gained population over the last five years. Not surprisingly, Latino-owned businesses are also growing, by 56.2 percent tying Georgia for second place behind New York, and now include more than 3,400 enterprises, with sales exceeding $210 million annually.

The 2008 Spring Primer Paso graduates are:

Back Row (L-R): Oswaldo Garcia D Country Landscaping, LLC, Jose Aurelio Mirna's Bakery, LLC, Johanna Martinez, Josue’s Transportation, Daniel Suero D & D Mortgage & Construction, LLC, Alfonzo Acevedo, America News, Jorge Davila, Davila Import & Export, Juan “Manny”& Lissette “Kathy” Guzman International Mattress, Hilario Quezada, H&Q Electrical Contractors, Gisella Soriano, Andres Morales, Miriam Leticia Lara, Nelson J. Durango Perla Jewelry, Nurys Mosanto, Medina Accounting Services, Urania Lara, Urania Design, Gabriela Torrealba, Torrealba Communications, Julian Osorio, Anthony Osorio, Gemini Custom Artworks Front Row (L-R): Katherine Denis, Kathy’s Greeting Cards, Lydia E. Perez Puerto Rican Institute for the Arts & Advocacy, Maria Alvarado, Guatemalan American Association of RI, Tomas Alberto Avila, RISBDC Business Counselor, Gloria L. Rubio Rubio Financial Group, Pastora Medina, Medina Accounting Services Missing from picture: Matilde Barrera, Lubia García, Josue Martínez, Josue’s Transportation, Pedro Pichardo Pichardo Solutions, LLC, José Tejada El Gran Salón Babershop

Kennedy Secures Funds to Assist with Job Development Tuesday, May 27, 2008

Central Falls, R.I.-Today, Congressman Patrick Kennedy delivered $182,000 in federal funds to The College of Business and the Rhode Island Small Business Development Center (RI SBDC) at Johnson & Wales University’s Providence campus and Progreso Latino, Inc to invest in a new generation of talent that will one day be competitive members of our local workforce.

As the largest bilingual, multi-cultural social service agency in the state of Rhode Island, Progreso Latino improves conditions for members of the Latino and immigrant community with creative solutions that enhance our communities and strengthen our state.

The funding provided by this appropriation will support entrepreneurial education, training and business coaching for Latino entrepreneurs in Rhode Island and build capacity and infrastructure for sustainable economic and community development through the focused partnership of Johnson & Wales University and Progreso Latino, Inc. “This is an exciting opportunity to increase small business ownership in the State of Rhode Island,” said Congressman Patrick Kennedy. “Small business is the backbone of our workforce and critical to our country’s overall economic health. It is imperative that we invest in young innovators to help maintain a strong workforce and take the lead in growing our economy,” he said.

The program will focus on businesses in Pawtucket and Central Falls, Rhode Island. With Latinos making up 14% of the population in Pawtucket and 48% of the population in Central Falls, this funding will be effective in identifying and meeting the needs of this growing constituency. JWU students and faculty will also benefit from the real life experience of working with these clients and helping their businesses continue to make significant contributions to the local economy.

Ramon Martinez, President/CEO of Progreso Latino said of the appropriation, “I am very excited about our continued partnership with Johnson & Wales University's RI Small Business Development Center. Progreso Latino is proud and honored to support the SBDC's Fast Trac/Primer Paso program, which ensures that our entrepreneurs receive the necessary tools and resources to assist them with their capacity building. Our organization is also looking forward to the SBDC's continued involvement with our strategic planning and employee development

process in order to better serve the needs of our constituencies” Martinez indicated he was grateful for the Congressman’s support of this important initiative and feels it will go a long way towards “fulfilling our missions to the communities we serve”.

John Cronin, RI SBDC Executive Director also acknowledged the Congressman’s leadership in this realm. He said, “In partnership with Congressman Kennedy and Progreso Latino, we will provide world class education, training and business coaching to hundreds of Latino entrepreneurs who will work with JWU faculty and students to create a more prosperous future.

We’re so proud and excited to advance this good work.”

Luis Almanza

Mayra Andrade

Graciela Boisver

Nelson Le贸n Cata帽o

Pedro Pablo De La Rosa

Experanza Gomez

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Luis Jusino

Viviana Knowles

Wilma Lanza

Johana Lozano

Vanessa Melendez

Candido Moya

Pedro Moya

Yuleida Pirela

Juan Rosales

Maria Sullivan

Ernesto Vega

Paula Ajuncun

Federico Alcala

Maria Victoria Cano

Boris Mendez

Maria Lopes

Alvaro Reina

Fernando Restrepo

Silvia Reyes

Victor Reyes

Sorhenis C. Sanchez

Carmen R. Serrano

Adriana Esther Simanca

Franklin Solano

Maria C. Solano

Dominga Taveras

Jorge Torres

The Growth of Latino Small Businesses in Providence

by Kerry Spitzer and Sol Carbonell Federal Reserve Bank of Boston Spring 2012

Providence was hit hard in the Great Recession. By June 2011, the city’s unemployment rate was over 15 percent, above the national average and the highest in New England.[1] But a positive trend recorded before the financial crisis—when the city’s Latino-owned businesses grew in number from 731 in 1997 to 2,999 in 2007—may hold promise for the future.[2] That change—substantial both in absolute terms and in comparison with other small and midsized cities in the region—led researchers from the Boston Fed to investigate. Their conversations with business owners, technical-assistance providers, and microlenders from the nonprofit and government sectors offer a better understanding of the Providence phenomenon.

What Has Changed?

According to the census, the Latino population in Providence has been growing for decades. In 2010, 67,835 Latinos were counted (up 30 percent from 2000), comprising 38 percent of Providence’s total population of 178,042. Among the largest groups today are Dominicans, Puerto Ricans, Guatemalans, Mexicans, Salvadorans, Bolivians, and Colombians.[3] Originally, Latinos found employment in textile and jewelry manufacturing. But with such jobs scarce today, nearly every interviewee mentioned the decline of manufacturing as a reason for the increase in self-employment. One business owner, who had lost her job in the jewelry industry, cited herself as an example. (See “Share of Latino Population that Own Businesses.”)

The loss of manufacturing and a lack of in-demand skills have led to the increase in Latino small businesses, especially among first-generation immigrants, but others have suffered from the same issues. By themselves, these reasons do not explain the high growth in Latino businesses.

Is It Clout?

No one group dominates Providence’s Latino population, which sets it apart from otherwise comparable cities. In Springfield, Massachusetts, for example, 86 percent of the Latino population is Puerto Rican. There is more diversity in Providence, and the pan-Latino community has a history of organizing to demand services.

The Rhode Island Latino Political Action Committee, founded in 1998, has contributed to the ascent of several Latino political leaders, including Providence Mayor Angel Taveras. But when asked about the correlation between increased political representation and the growth of Latino

small businesses, most interviewees say that Latinos may feel empowered to make greater demands but they have not seen additional resources.

One owner commented, “The only connection I see is more personal. Not businesswise. I mean, what’s happening is [that] as Latinos, we’re getting a little more guts.”

Another said, “While we still don’t have the power to make decisions and bring a direct benefit, [representation] generates more confidence. … We have people that can help us and represent us at the right moment.”

Is It Resources?

The researchers talked to business owners who varied greatly in their education, English-language competence, and business skills, with the second generation often being stronger in those areas than the first generation. But that was not always the case. Several first-generation immigrants had extensive advanced degrees.

Nevertheless, second-generation Latinos were more likely to open “professional” businesses— for example, in web design or insurance. One owner whose family came to Providence to work in the textile mills before his birth reported, “A lot of my peers … went to college. We’re all professionals now.” In fact, according to the census, the share of the Latino population in Providence with a bachelor’s degree or higher increased from 7 percent in 2000 to 11 percent in 2009.

Even with the increased educational attainment of many Latinos, a third of Providence households live below the poverty line, 44 percent over the age of 25 have less than a high school diploma, and 35 percent don’t speak English or speak English “not well.”

The entrepreneurship service that bilingual business owners most often reported using was the mentoring offered by the Small Business Development Center at Johnson and Wales University.

SBDC links entrepreneurs with experienced faculty, professionals, and students, who assist people on a one-on-one basis. Such services were seen as being instrumental in forming business plans and developing websites.

The business owners who used SBDC were first-generation immigrants. Most of the interviewees expressed a feeling that, in general, small-businesses services such as those offered by the city and local nonprofits were not for them. Some interviewees were not even aware of the services. A lack of English may have been a reason.

With regard to financing, nearly all said they relied on family or personal assets, an approach they found preferable to trying to access money from the government. Said one owner, “It has been more costly [in terms of higher interest rates] but certainly faster and more effective.”

Only a few reported receiving loans or lines of credit from a bank, and no interviewee had participated in the city’s microloan or storefront-improvement program. A few owners had approached the city or the Small Business Administration about obtaining loans, but the lending requirements were perceived as “too complicated” and the process for seeking assistance or applying for funds as “too lengthy.”

After being denied an SBA loan, one owner reported using the equity in her house: “I got discouraged … so I did my own thing.” A few owners, especially those who were not bilingual, reported using prestamistas who charge very high interest rates (essentially loan sharks). Mainstream Providence institutions have not played a big role. As one business owner said, “There are organizations that are doing a great job, but on average, they can assist eight to 10 people. There are 2,000—3,000—of us. The programs are very good, but what’s needed is scale. … There is a lack of vision, perhaps, on the potential that Latinos represent.”

Elusive Lessons The relatively small size of Providence and its role as a cultural hub and state capital appear to have supported the development of a cohort of professional Latino leaders who hold networking events that bring the community together. One prominent group grew out of the small business development class Primer Paso, a 12-week class funded by a grant from the Kauffman Foundation and based on Kauffman’s curriculum. The sessions, conducted in Spanish, were held at the SBDC and were offered several years in a row.

Share of Latino-Owned Businesses Relative to the Share of Latino Population

Source: American Community Survey (3-year estimates 2005-2008), Survey of Business Owners (2007).

One thing people loved about the classes was the chance to learn from peers and to network. As one participant said, “It was there that I understood that opening a business was not about having a

store and opening the doors, but rather things associated with marketing, with having your accounts in good standing. The program gave me the opportunity to meet people [who] have been able to help me move forward.”

Business owners and technical-assistance providers continued to attend the monthly networking events after the class ended. “The networking has been critical to developing my business,” the participant adds. He liked “the opportunity … to know what’s out in the marketplace. You can see globally what’s happening not only in the area in which you have your business but other related areas as well.”

In sum, the growth of Latino small businesses in Providence has occurred organically. There is no one program or institution that explains why so many Latinos decided to start businesses—not political clout, not training programs, not networking. Many threads comprise the whole.

The researchers believe that there is untapped potential in Providence that could help business owners more while boosting economic growth. Nationally, Latinos are experiencing more entrepreneurial activity than other groups.4 Providence would be well advised to make Latino entrepreneurship a priority, leveraging its past success and embracing the potential. City government, technical-assistance providers, and lenders should capitalize on the Latino community’s strengths and try to broaden the availability of services to bilingual and Spanish-speaking entrepreneurs. Just improving public safety and streamlining the permitting process would be beneficial, as several owners indicated.

Of course, expanding services can be a challenge in tough times. And small business owners frequently do not see value in closing their businesses to attend an event or a class. Overcoming the challenges will require outreach that is culturally sensitive and language specific. A coordinated, strategic, and collaborative effort by all service providers would be a good place to start.

Kerry Spitzer, a doctoral candidate in the department of urban studies and planning at MIT, assisted with this research while an intern at the Federal Reserve Bank of Boston, where Sol Carbonell is a senior community affairs analyst.

Endnotes [1] “New England Economic Snapshot” (white paper, Federal Reserve Bank of Boston, August 2011), http://www.bos.frb.org/bankinfo/firo/publications/economicsnapshot/2011/EconomicSnapshotAug2011.pdf.

[2] Ana Patricia Muñoz, et al., "Small Businesses in Springfield, Massachusetts: A Look at Latino Entrepreneurship" (Public and Community Affairs discussion paper no. 2011-2, Federal Reserve Bank of Boston), http://www.bostonfed.org/commdev/pcadp/2011/pcadp1102.pdf.

[3] US Census Bureau, 2010 Census.

[4] Entrepreneurship Index, Kauffman Foundation, http://www.kauffman.org/newsroom/joblessentrepreneurship-tarnishes-steady-rate-of-us-startup-activity.aspx.

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