E-Newsletter
An Electronic Publication of the North Central Massachusetts Chamber of Commerce
The Growing Impact of Latinos on the North Central Massachusetts Economy
“We have seen a steady and ever-increasing community of Hispanics grow in the North Central area, especially Fitchburg and Leominster,” said Neddy Latimer, executive director at the Spanish American Center in Leominster. “Whereas in the early years, the primary Hispanic population moving to this area were of Puerto Rican descent and migrated up from New York City in search of work in the plastics and other industrial endeavors, the population has diversified greatly, with significant numbers of families from the Dominican Republic, Haiti, Mexico, and other Central and South American countries.”
As the oldest social services organization exclusively serving the Hispanic community in Worcester County, Latimer, and colleague, Mickey Guzman, who serves as the organization’s information and referral specialist, both serve as liaisons between the community and the services their clients need. “While our name may have Spanish American in it, we are committed to helping everyone in the community regardless of their cultural background.”
“We work with clients on everything from legal documents that need to be notarized to providing referrals for housing services and assessments for children to enroll in school,” said Guzman. “We want to obtain an overall picture of the family to learn of their needs so we can help connect them to ESOL (English to Speakers of Other Languages) classes, finding employment and we even help with food insecurity.”
Nico Gerthet-Garcia, community business advisor at the Chamber and the North Central Massachusetts Development Corporation, said despite challenges, North Central Massachusetts as a good place to raise a family for everyone, including Latinos. “Our region has a laid-back feeling and low crime rates when compared to other cities, so it really makes North Central the best place to live and work.”
And Gerthet-Garcia would know. Originally from Uruguay, he immigrated to Leominster at three-years-old with his family because of the strong Uruguayan culture in the city. “I’m from Uruguay and I think Leominster is likely the third highest populated city of Uruguayans in the country after Miami and a city in New Jersey,” he said. “When I lived in Leominster as a child, my culture was still all around me because of the large Uruguayan presence there. We even left and moved to Atlanta for a short time but came back to our second home in Leominster because we were so much more comfortable there.”
Gerthet-Garcia estimates there are approximately 3 million Uruguayans in the United States and many of them are interested in starting a business to help the local economy. However national data and local research indicate that minorities are less likely to take advantage of available resources within the entrepreneurial ecosystem and established business networks.
The Chamber and its economic development arm, the North Central Massachusetts Development Corporation (NCMDC), are doing something to change these statistics and that’s where Gerthet-Garcia can help. He was hired to work at the NCMDC to focus on the Latinx community where there is a robust need for assistance. “We want to reach out to our Latinx community and let them know if they have a desire to open a business that we can make that dream happen,” he said. “I joined this team so our Latino speaking clients have someone who can effectively communicate with them—and for them—while also understanding their struggles and cultural barriers so they feel confident when obtaining a loan.”
Gerthet-Garcia estimates that eight out of 10 NCMDC loans are for startups, with the average loan amount of $25,000. “We don’t just help them get the loan, but we also connect them to partners who work with the entrepreneur on a business plan and help make projections, which are required for our startups to access funding,” he added. “There is a lot of hand holding through the process, but we help with communicating their needs with the underwriters and then make sure the entrepreneurs have all the resources they need post-closing to be successful.”
As a Latina business leader in North Central, Rachel Lopez, president of Resource Management, Inc., in Fitchburg, said Hispanic owned businesses continue to be confronted with insufficient access to capital and funding, while additional challenges of being a Latina and woman exacerbate the disparity between her male counterparts in the region.
“Latina owned businesses face additional challenges similar to other women-owned businesses with substantially lower revenues and profitability than the businesses owned by men,” said Lopez. “Expanding access to financial education, government programs, grants, and loans helps address the challenges while empowering Hispanic entrepreneurs to grow their business and contribute to the economy.
Lopez noted that Hispanic owned businesses face many challenges including financial disparities, limited access to financing sources and lenders, discrimination and cultural differences, limited resources and lack of awareness of funding options, as well as customer acquisition, and hiring, retaining and growing staff.”
In fact, Latino owned businesses were disproportionally impacted by the pandemic as research by the Worcester Business Journal conducted after the pandemic indicated that only 6 percent of Paycheck Protection Loans in Worcester County were awarded to Latinos, as opposed to 84 percent going to White business owners. What’s more is that reporting by MassINC also found that 29 percent of minority-owned businesses missed rent payments compared with 19 percent of White-owned businesses. MassINC indicates these statistics are a likely result of disparities for Latino businesses that have not been able to access resources and programs as much as other business owners.
Despite the challenges, Lopez and Gerthet-Garcia agree that Latino business owners are the fastest growing group of entrepreneurs creating businesses, which Lopez noted is at more than twice the rate of the general population and three times the rate in our region.
“Latino owned businesses are set to revolutionize the U.S. economy and are projected to make up 29 percent of the population by 2050,” said Lopez. “As of 2023, Latino entrepreneurs established five million businesses across the United States generating over $800 billion in annual revenue.”
According to the workforce study commissioned by the Chamber, the region’s underserved populations, especially the Latino population, face glaring educational and income gaps. For example, the Latino population makes up about 11 percent of the region’s population but accounts for 28 percent of residents without a high-school degree, setting them up for a disadvantage in the workplace.
In January 2022, the Chamber announced the Equitable Credential Attainment Cohort program in partnership with Mount Wachusett Community College (MWCC) and the Spanish American Center. The goal of the program is to increase participation in targeted credential programs among underserved residents across North Central Massachusetts with a focus on the Latinx population. In Worcester County, approximately 76 percent of all jobs are held by White workers, and these same workers hold over 81 percent of all higher-wage jobs. Conversely, Black and Hispanic/Latinx workers account for 17.3 percent of all employees, but account for over 25 percent of all workers earning less than $35,000 per year.
Kijah Gordon, assistant vice president for Lifelong Learning and Workforce Development at MWCC, spearheads the program with the Chamber and the Spanish American Center, who work collaboratively to communicate and refer the program to potential students.
“We already had a great working relationship with Mickey and the Spanish American Center, and Travis (Condon) at the Chamber, so this partnership was seamless from the beginning as we worked together to get the word out and find individuals who would be the ideal students for the program,” said Gordon. “The Spanish American Center posts about the program on social media and Mickey is always referring clients to us.”
MWCC offers an eight-week or 15-week program with students finishing the course work in one semester and move into a 30-hour full workweek with one of the program’s clinical partners. The program is free and includes everything a student needs to ensure success, including skills prep, textbooks and scrub uniforms. As of July 1, 2024, Massachusetts offers the first CNA test for free as well.
Once an individual is enrolled as a student, meetings are scheduled with Gordon and program staff to understand the student’s needs and to evaluate on the best path forward to ensure success.
“Our students have families and may need certain hours to attend programs in order to care for their children,” added Gordon. “For example, manufacturing was a part of the original program, but most mothers in the program were concerned about the longer hours of working time that manufacturing requires and realized there was a better work-life balance and career path with our CNA (certified nurse aide) program. With this realization, we found a strong pathway for a CNA to be an RN (registered nurse) in the future as well as a higher increase in pay in the health care field.”
Empowering students is another aspect of the program, which Gordon said offers a sense of pride among students. “In years prior, our programs included the term ‘ESL’ in the program description, but students didn’t like having ESL attached to their program, so we adjusted the program names and now refer to our programs that offer ESL as CNA+, for example,” she added. “Students also mentor their peers which in itself provides pride and an opportunity to learn leadership skills.”
For Lopez, her climb to President began in 1995 when her father founded RMI, and over the years she has made it her life’s work to improve the Latinx community through volunteering her time. She was appointed as a member of the Latino Advisory Committee for the Commonwealth of Massachusetts by Governor Charlie Baker, served on the ARPA Advisory Committee for the City of Fitchburg, as a Trustee and board member for the Fitchburg Art Museum, and was chair of the board for the Chamber in 2021-2022, and as Treasurer of Centro.
“The Chamber is an unwavering advocate for the interests of the region and our business is proud to be involved in helping to advance our economy,” said Lopez. “I was honored and humbled to serve as the Chair and grateful for the experience. It is my sincere opinion that North Central Massachusetts is a great place to live, put down roots and build businesses.”
Lopez said it is also encouraging to see North Central grow and transform to attract diverse minority groups of all backgrounds and businesses.
“The real estate market, coupled with our elected leaders’ commitment to enable entrepreneurs to be successful, plays a key role,” added Lopez. “This has led to the establishment of many Latino businesses. The success of these minority-owned businesses in North Central will undoubtedly attract more people, including the minority groups, who see unlimited opportunities for future entrepreneurs.”
Reach out to learn more!
North Central Massachusetts Development Corporation
Nicolas Berthet-Garcia
978-353-7600, ext. 223
https://www.northcentralmass.com
Spanish American Center
Mickey Guzman
978-534-3145, ext. 113
https://www.spanishamericancenter.org
Mount Wachusett Community College
Kijah Gordon
413-364-1931
http://www.mwcc.edu
Resource Management, Inc.
Rachel Lopez
800-508-0048
https://rmi-solutions.com/
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