Ruben Garcia came to the United States from Mexico in the 1980s, but never really thought of opening his own business until the necessity pushed him to do it, he said.
He lost his job as a welder three years ago at the same time an acquaintance offered to let him take over an auto shop, Garcia’s Garage on Rossville Boulevard, where he installs stereos, buys and sells used cars and offers a towing service.
Garcia is among a growing number of Hispanics, especially Mexicans, who own a business in Tennessee and Georgia – reflecting a national trend.
The number of Hispanic-owned businesses in the United States increased by 43.7 percent to 2.3 million, more than twice the national rate of 18 percent, between 2002 and 2007, the U.S. Census Bureau reported.
Georgia saw a 78 percent increase during the same time period and Tennessee a 103 percent increase.
“The breakdown of the numbers for Chattanooga have not been released, but anecdotally we have certainly seen a strong growth in the Spanish-speaking population in Chattanooga,” said J.Ed Marston, vice president of marketing and communications for the Chattanooga Area Chamber of Commerce.
There’s been a shift of businesses adapting to meet the needs of the new clientele as well as new businesses that primarily serve the Hispanic community, he said.
And the types of business are also diversifying from restaurants and stores that cater to the needs of Hispanic immigrants, to more specialized shops that sell tires, insurance policies and cakes.
While Garcia’s primary customers are Hispanics, he said the fact that he is bilingual helps him serve a wide array of clients.
“To me it doesn’t matter if they are Hispanic or not,” he said, although being a Spanish-speaker certainly helps him with his Hispanic customers.
In 2007 there were close to 9,000 Hispanic-owned businesses in Tennessee and about 32,000 in Georgia, according to the census.
Although the numbers are impressive, Dr. Marilyn Helms, professor of management at Dalton State College, said they will probably be lower after 2007 – when the recession started.
She said it’s harder for minorities to find money and Latinos fall in that group. Also, banks are not lending, Helms said, and the housing problem affects a lot of the small businesses, since a good number start up with services for homeowners.
Garcia, who lives in Rossville, said many immigrants start their own business because they want to better themselves, and Helms agrees.
“The reason many immigrants go through big struggles to leave their homeland and go somewhere else is for opportunity,” she said.
The Chattanooga Chamber is considering starting a Hispanic Chamber of Commerce, but Marston said it’s still in the developing phase.
He expects to see more Hispanic-owned businesses in the area as the community establishes itself, he said, and feels comfortable to take such a risk.