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Hispanic Chamber hopes to help city cash in on growth
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Victor Diaz, head of the Pittsburgh Metropolitan Area Hispanic Chamber of Commerce, at the office in Aspinwall
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When local business owner Victor Diaz isn't running his Aspinwall-based contracting company, he may be found showing around potential Hispanic investors from Spain or a Cuban contingent based in New Jersey.
Mr. Diaz, president of Videotek Construction and CEO of the Pittsburgh Metropolitan Area Hispanic Chamber of Commerce, is trying to help the Steel City cash in on one of the largest, and fastest-growing, business development sectors.
According to preliminary statistics compiled by the U.S. Census Bureau, growth of Hispanic-owned businesses in Pennsylvania followed the national trend of rapid growth among minority-owned businesses between 2002 and 2007. In that time, the state saw the number of Hispanic-owned businesses double.
But Pittsburgh has seen little of that increase.
"This area is a great area, but it takes its time embracing new things and getting things done," Mr. Diaz said. "We have everything here.
"It's amazing how some of these folks, in Jersey in particular and Baltimore, they really don't know about this place."
The Hispanic chamber, which has about 50 dues-paying members and a database of 350, would love to help change that.
Recently Mr. Diaz and Allegheny Conference on Community Development CEO Dennis Yablonsky embarked on a trade mission to Puerto Rico, where they spoke with investors about the Pittsburgh region. The chamber also has worked with the Pirates organization to help Hispanic players and their families settle into the region.
Mr. Diaz said the chamber works with other local organizations, such as the Pittsburgh Regional Alliance, that help bring foreign investors from Spain to the region to explore commercial investment opportunities.
Pittsburgh's size, including a smaller population than some other metro areas, has been a factor in its low-key marketing efforts to reach out to Latinos, Mr. Diaz said.
Still, there is an interest among Hispanic investors, he said. In August, he showed several Cuban investors based in New Jersey around Pittsburgh, where they spent three days or so exploring the area and talking to different agencies about commercial real estate and investment opportunities.
Mr. Diaz, who grew up in Cuba, lived in Mexico, Oklahoma, New Mexico, North Jersey and Florida before settling in Pittsburgh 10 years ago.
Nationwide, Hispanic-owned businesses enjoyed riding the crest of the pre-recession boom experienced by minority-owned businesses overall. Preliminary data shows that minority business ownership was increasing at more than twice the national rate, growing 45.6 percent between 2002 and 2007, the period studied by the Census.
Carl Knoblock, district director of the U.S. Small Business Administration's Pittsburgh District Office, said he's seen a lot of these minority-owned small businesses popping up in Pittsburgh, even if it's just a part-time venture for some extra income.
"It's a growing market in the minority community, especially minority women. They are the ones being really aggressive," he said. He has seen businesses ranging from cafes and small retail outlets to building services and contracting.
Nationally, businesses owned by Hispanics increased by 44 percent, second only to businesses owned by African Americans, which were up by 60.5 percent. Asian-American owned businesses were up 41 percent.
According to Census statistics, businesses owned by Hispanics vary, with 36.9 percent of them falling into the "other" category. Common ventures include repair, maintenance, personal and laundry services, as well as transportation and construction companies.
The growth isn't surprising to Mr. Diaz, who said government earmarks and programs aimed at boosting minority-owned businesses have helped startups and existing businesses.
"I truly believe that there are a lot of agencies that have gone forth that have made it a point to include smaller agencies [and minorities]," he said.
The crux of the issue is that there's just not that many Hispanics in Pittsburgh, and those here aren't nearly as prominent and vocal as other minority groups, he said.
According to a demographics report compiled by the state of Pennsylvania, Hispanics made up 1.58 of the population in Pittsburgh, or 19,084 people, in 2008. In 2013, projected numbers expect the Hispanic population to grow to 2 percent, or just more than 24,000 people.
In Philadelphia, Hispanics make up 11.2 percent of the population, or 162,000. That population is expected to grow by 20,000 by 2013.
Allegheny County as a whole is expected to see its population decrease by 2013, with Hispanics and Asians the only demographic expected to show signs of significant growth.
In a city that has, for example, no large Spanish supermarkets, Mr. Diaz said there's still much to be done before Pittsburgh could fully use what the Hispanic community could offer.
As the Hispanic population increases, so does the impact from those businesses in Pennsylvania.
Statewide, businesses owned by minorities shot up by 12 percent, between 2002 and 2007, from 874,255 to 982,288. Those businesses -- some with paid employees and others with unpaid -- contributed a 24 percent increase in business and receipts, at $1.18 billion, up from about $952 million in 2002.
Like others nationwide, Mr. Diaz said Hispanics are following the trend of using entrepreneurial venture as an answer to unemployment and Pittsburgh might be seen as the last frontier for both those looking for a startup and those looking to try again.
Victor Diaz, head of the Pittsburgh Metropolitan Area Hispanic Chamber of Commerce, at the office in Aspinwall
First Published October 17, 2010 12:00 am
