For Latinos, women, it’s hard to start a small business.


Fabiola Giguere has been cleaning for the past 33 years. The US Small Business Administration estimates that two-thirds of new businesses don’t survive their 10th birthday.

However, their numbers are even more impressive considering that Giger immigrated to East Haven in 1989 to escape terrorism from a Peruvian militia group called Sendoro Luminoso. Three years later, she started Limpiex, a cleaning company in Hamden.

As that business prospered, Giger began pursuing her passion through her own jewelry brand, Chic Designs. Achik Designs, named for the Quechua word for “bright,” has been at 1081 South Main St. for the past five years.

Giger plans to expand her business to a former Wells Fargo branch in downtown Wallingford.

“It will be open concept,” she said. “I’m having fun.”

However, Giger’s success is unusual in that both women and Latinos are more likely to be employees than business owners.

In Connecticut, about 16% of workers are Hispanic, but only 9% of business owners are Hispanic, according to the SBA report. The report found that 22% of employees are ethnic minorities, but only 12% of business owners are.

The SBA found a huge gap for women, who make up 48% of the workforce, but only 41% of business owners.

This gap is particularly significant for New Haven County, as small businesses account for more than half of the county’s employment: higher than the national and regional averages, according to an analysis of 2019 Census data. Record-Journal.

To address these disparities, the state announced two new programs this summer — the Connecticut Small Business Enhancement Fund and the Connecticut Future Fund. Both are designed to provide resources to small businesses owned by women and minorities.

However, despite new initiatives, many minorities do not have a business background or access to the knowledge needed to start a business.

Nelson Marchan, a native of Colombia, has worked as a consultant at the Connecticut Small Business Development Center for the past nine years and has worked with many Latino-owned businesses.

He explained that the center offers free resources to people who want to start their own business even if they don’t have a business degree.

“We want the customer to make more money because that’s good for the economy,” he said. “If the family can make better decisions, that’s a wonderful gift for our communities.”

Reflecting on his career, Marchan says three of his most successful clients have been women. The consensus was that all three had experience in their industry and went through the paperwork needed to get a loan

Before a bank approves a business loan, Marchan explained, most lenders require applicants to deposit 20% of the funds needed to start their business. Banks also ask for technical documents such as business plans, financial projections and market research, Marchan said.

“The numbers must be realistic because if they are not, it is impossible to win,” he said.

Because of the strict requirements, Marchan said applicants may be tempted to approach lenders with more lenient requirements.

However, with more lenient requirements, the loan is often seen as a risky investment, which leads to higher interest rates on the loan.

In addition, low English proficiency, a low credit score or lack of collateral can prevent Latinos from getting a loan, he added.

In addition to these issues, there are additional barriers for women who want to start a business.

“Most of the people who decide who gets a loan are not women,” says Joanne Gulbin of the Connecticut Women’s Business Development Council. “Access to capital continues to be the biggest barrier for women who are starting, trying to start or growing a business,” she said in a phone interview.

The council offers a number of opportunities for women entrepreneurs, including advice, assistance, loans and networking. The council focuses on small and low-income clients, with 48% of its clients being micro-organised enterprises, according to the council’s report.

With a growing number of Latinos in Connecticut, Gulbin said the council has hired Spanish-speaking business consultants and program managers, made its website available in Spanish and offered bilingual workshops.

Gulbin has partnered with the Connecticut Office of Early Childhood to develop a series of business development services for home and center-based child care providers.

In the year One in five child care workers in Connecticut are Hispanic women, according to 2018 Census estimates. The numbers are even higher for Meriden, where one in four child care workers are Hispanic women.

“A good number of childcare providers are Spanish-speaking,” Gulbin said. “We had to offer a lot in Spanish to do our best to serve them.”

Gloria Montoya of Meriden recently became involved with the council. She applied and participated in various workshops.

Montoya’s business, My Little World, is well… small. She is the sole employee and takes care of six preschool children. Montoya in 2011. She emigrated from Peru in 1999 and

“Children are like sponges, learning many languages, even if they don’t speak them,” she says of Spanish. “Children decide whether or not they want to speak a language, or both, but they already have the knowledge.”

Montoya holds an associate’s degree in child development from Middlesex Community College and enjoys discussing early childhood education, but admits accounting is not her forte.

“I knew a lot about what business was and how to run it, but all the accounting went to my accountant,” she said. “they [the council] They have given me a lot of guidance.”

Montoya also received a technology grant during the outbreak and received funding to upgrade her carpet to hardwood and better care for allergies.

In addition to lack of access to credit, many Latino-owned businesses struggle with staying in business for the long term.

“I think sometimes the lack of planning forces companies, Latino companies to fail,” Marchan said.

Marchan stressed the importance of creating a sound business plan for long-term success — especially when the new business owner doesn’t have to apply for a loan. Many first-time business owners get wrapped up in their ideas and don’t know how their future project will work. “Dreams are beautiful, but sometimes reality takes away dreams,” he said. “If the business doesn’t grow and you still want to keep spending money, that’s not good.”

“You have to do your research.”

Giguere remembers that when she first opened Limpics, she was recommended by SCORE, an SBA-supported nonprofit that matches business mentors with business owners. “Every time you open something, you have to do your research,” she said.

Giguere has a bachelor’s degree in business administration from Albertus Magnus College. However, despite her business background, the SBA recalls helping Limpics become an 8(a) certified company.

According to the administration, 8(a) certificates are a nine-year program created to assist organizations owned and controlled by socially and economically disadvantaged individuals. For Guiguiere, that means Limpiex can compete with larger firms on contracts specifically designed for 8(a) businesses.

Guigiere encourages other business owners to take advantage of programs like SCORE and 8(a). A few years ago, Guguier said she returned to SCORE to teach a workshop on how to start a cleaning business.

“Starting a business can be scary. But once you get the hang of it, it definitely gets easier, she said.



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