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Without fear of being deported, Mexicans would invest more

Oscar Benitez, 19, started a research about the impact of Mexican businessmen in South Philly and now, he discloses the results.  

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The Mexicans that push the economy in South Philly begin with four years of disciplined savings, about $40 thousand in cash, and losing the fear of deportation, financial crisis and lack of English.

 

“I found myself in a unique situation, a new demographic group which arrived to a city that lost population with the fall of the industry”, said Oscar Benitez, who made a study about that subject.

If the Mexican Mario Aguilar had more certainty about the economy and more support in this country, foreign to him, he would invest more in his store.

Three years ago and with a lot of sacrifice, he opened up a store, San Andres Grocery, on 9th street in  south Philadelphia. The demand for Mexican products in this area favors Aguilar and hundred other Mexican business.

“Most of my clients are Mexican. We are used to our products; when we didn’t have an option we used American products, but now that we have access, it’s a lot better”, said Aguilar.

“There’s always fear that if the economy doesn’t get better, one might be forced to close business”, he said.

Aguilar is now part of Philadelphia’s economic statistics: One of 83 Mexican businessmen, which according to Benitez’ study for the University of Pennsylvania (UPenn), revitalized in a short period of time, an area that had been forgotten.

Benitez was born of Salvadoran immigrant parents. With only 19 years of life, he had the professional and personal interest of researching how immigrants shape the economy in the United States.

Over two years and with funds from the Institute of Urban Research of the University of Pennsylvania, the student researched 92 business owned by Latinos, 83 of them are Mexican, located on Washington Ave., at the commercial strip on 9th Street and its surroundings.

Benitez, born in Los Angeles (CA), did the research as an extra-curricular project for three of his classes, while earning his bachelors in Urban Studies, he titled it “Philadelphia as a Re-Emerging Immigrant Gateway: An Exploration of Mexican Entrepreneurship & its Economic Value.”

“My main goal was to share more information with the city administration, the Department of Commerce and with everybody who’s part of a community that’s misunderstood, by the government, and community leaders”, said Benitez, who is currently working in the stock market in New York.

Benitez was also looking to “motivate others to do more research like his, maybe in North Philadelphia, or one about Salvadorans in Washington, to serve the needs of the community”.

The research deals with the accomplishments of the community, their challenges and suggests ways for the city to help this population and the economy of Philadelphia.

According to research Mexicans arrived in Philadelphia in the mid-90’s, but it wasn’t until the spring of 2003 that business expanded.

These businessmen were looking to cover the needs of a constantly growing population, which prefers the ethnic products they’re used to.

First came the grocery stores, which represent 45.8 percent of business, while the restaurants and other services represent 21.7 and 32.5 percent respectively.

The restaurants, stores and businesses are usually taken care of by families. The woman can stay in the store while taking care of the children, and the husband can go to work.

15 percent of the interviewees provided their financial information and on average Mexican business makes $10.266 each month.

Most business owners have lived in Philadelphia an average of 10.03 years, and to start a business they invest an average of $39.936, which is usually saved in cash.

“A very important aspect is their immigration status, most of the interviewees agreed that if they were not afraid of being deported and losing all their assets, they would invest 25 percent more”, said Benitez. “Furthermore, they agreed that most of their earnings are reinvested in their businesses”.

Contrary to small business across the nation, which aims to build credit in financial institutions, Mexicans get their capital from close friends and family loans. Most businessmen distrust financial institutions, face language barriers, and lack an understanding of the financial system and its services.

Collecting the money is also the result of a strict savings discipline that takes an average 4.27 years.

“When I met with the Department of Commerce and city clerks I realized the lack of understanding about this community. I hope this research becomes a platform for businessmen, who don’t speak English, to express their needs and for the city administration to assume the role they need”, said Benitez.

Domenic Vitiello, Assistent Professor of Urban Planning and Benitez’ counselor during his investigation, assured that the study came at the right time because the community, which was almost strictly male, was growing into a community of children, women and men.

“The Mexican community had a fortunate accident. Besides the demand of services due to increased population, they gathered in an area outside Center City, which is now a cosmopolitan point for the middle class to spend their money, in opposition to the Puerto-Ricans in Kensington”, said Vitiello.

After two years of intensive research, Benitez was still surprised by one thing. “These people don’t have a business degree from UPenn or any other place. Nevertheless, they have a level of optimism, trust, and business spirit regardless of all the obstacles they’ve been trough, and the ones they live, with or without documents”.

To see Benitez research click here.

 “Research gives us credibility”

The director of operations of the Philadelphia Department of Commerce, Kevin Dow, admitted he had not seen a similar study in any other ethnic community in the city.

“There are suggestions from the study that we are already implementing, like access to language (Global Philadelphia), and the participation with particular advising agencies”, said Dow. “There are others that we will implement in a short term, but I think this research gives credibility to what we were doing before”.

Regarding the barrier between the community and the financial entities, Dow explained that it’s not necessarily a negative phenomenon, because it allows the money to “recycle” in the same community in south Philadelphia.

“We have to guide them somehow into the financial system, but the system they currently have allows them to re-invest in their community, instead of that money going out”.

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