Fabiola Giguere has been in the cleaning business for the past 33 years. This is not an easy task for anyone. That’s because the US Small Business Administration estimates that two-thirds of her new businesses won’t make it to her 10th anniversary.
But the numbers are more impressive when you consider that Guillere moved to East Haven in 1989 to escape terrorism from a Peruvian militia group known as the Sendero Luminoso. Three years later she started the cleaning company Limpiex in Hamden.
When that business took off, Giguere began pursuing her passion through her jewelry brand, Achiq Designs. Her Achiq Designs, named after the Quechua word for “bright”, has been open for the past five years at 1081 South Her Main Street.
Giguere plans to expand into its former Wells Fargo branch in downtown Wallingford.
“This will be an open concept,” she said. “I am having fun.”
But both women and Latinos are more likely to be workers than business owners, so Jiguel’s success is an exception to the norm.
The SBA reports that in Connecticut, approximately 16% of workers are Hispanic, but only 9% of business owners are Hispanic. The report also found that about 22% of workers are racial minorities, compared to just 12% of business owners.
The SBA found a large gap in women, who make up 48% of the workforce, but only 41% of business owners.
This gap is particularly relevant to New Haven County, as small businesses account for just over half of the county’s employment. record journal.
To address these disparities, the state announced two new programs this summer: the Connecticut Small Business Boost Fund and the Connecticut Future Fund. Both are designed to provide resources to small businesses owned by women and racial minorities.
However, despite new initiatives, many minorities do not have the business background or access to the know-how needed to start a business.
Originally from Colombia, Nelson Marchan has worked as an advisor at the Connecticut Small Business Development Center for the past nine years, working with many Latino-owned businesses.
He explained that the center can provide free resources to anyone looking to start their own business, even if they don’t have a business degree.
“We want our clients to make more money because it’s good for the economy,” he said. “If families can make better decisions, that’s a great gift to our community. is.”
Looking back on his work, Marchand said that his most successful clients were women. What they have in common is that they all have industry experience and have completed the necessary paperwork to obtain a loan.
Before a bank approves a business loan, most lenders ask applicants for 20% of the funds needed to start a business, said Marchan. Banks also require technical documents such as business plans, financial forecasts and market research, said Marchan.
“The numbers have to be realistic. If you’re not realistic, you’re in a losing position,” he said.
The stringent requirements may tempt applicants to approach lenders with more lenient requirements, Marchan said.
However, more lenient requirements often mean that the loan is considered a riskier investment, resulting in higher interest rates on the loan.
He added that a low level of English, a low credit score, or lack of collateral can also prevent Latinos from getting loans.
In addition to these issues, there are additional barriers for women looking to start a business.
“Most of the people who decide who gets a loan aren’t women,” said Joanne Galvin of the Women’s Business Development Council in Connecticut. It remains the single biggest obstacle for women trying to grow,” she said in a phone interview.
The council offers many opportunities for women business owners, including advice, grants, financing, and networking. The Council focuses on minority and low-income clients as 48% of its clients report being minority-owned businesses.
With Latino numbers growing in Connecticut, Galvin said the council hired Spanish-speaking business advisors and program managers, made the website available in Spanish, and offered bilingual workshops. I explained.
Gulbin also pointed to a new program that has partnered with the Connecticut Early Childhood Education Authority to develop a suite of business development services for home and center-based childcare providers.
The 2018 Census estimates that one in five childcare workers in Connecticut is a Hispanic woman. Meriden is outnumbered, with one of her four childcare workers being Hispanic.
“A significant portion of childcare providers speak Spanish,” Galvin said. “We needed to offer more in Spanish to try our best to serve them.”
Gloria Montoya of Meriden recently joined the council. She applied and attended many workshops.
Montoya’s business, My Little World, is doing well. She is the sole employee and cares for six preschool children. Montoya emigrated from Peru in 1999 and started her home daycare service in 2009. She said the kids are of different ages and ethnicities, but she speaks to them all in her native Spanish.
“Kids are like sponges that can learn multiple languages without speaking,” she said in Spanish. “Children will decide which languages they speak or whether they want to speak both, but they already have the knowledge.”
Montoya holds an associate’s degree in child development from Middlesex Community College and is passionate about early childhood education, but admits that bookkeeping is not her forte.
“I knew a lot about what a business was and how to run it, but I left all the bookkeeping to accountants,” she said. “they [the council] I received a lot of guidance. ”
Montoya also received technology grants during the pandemic and funding to change carpets to hardwood floors to provide better care for children with allergies.
In addition to lacking access to loans, many Latino-owned businesses struggle to stay in business for the long term.
“I think the lack of planning can drive companies and Latinx companies to failure,” says Marchan.
For long-term success, Marchan stressed the importance of having a sound business plan, especially if the new business owner doesn’t need to apply for a loan. He said many first-time business owners are so obsessed with their ideas that they don’t know how their projects will work in the future. I will replace it,” he said. “If your business isn’t growing and you still want to keep spending money, that’s not good.”
“You have to do your research”
Giguere remembers receiving advice from SCORE when she first opened Limpiex. SCORE is a non-profit organization run by SBA that matches business mentors with future business owners. “Every time you open something, you have to do your research,” she said.
Giguere holds a Bachelor of Business Administration degree from Albertus Magnus College. But despite her business experience, Giguere recalls that the SBA helped her make Limpiex an 8(a) certified company.
According to the administration, 8(a) accreditation is a nine-year program created to help businesses owned and controlled by socially and economically disadvantaged individuals. For Guiguière, this meant Limpiex could compete with big companies on contracts dedicated to his 8(a) business.
Guigiere encourages other business owners to take advantage of programs such as SCORE and 8(a). A few years ago, Gugiere said she returned to her SCORE and taught a workshop on how to start a cleaning business.
“Opening a business can be a little intimidating, but having a blueprint definitely makes it easier,” she said.
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