BUYING POWER1990 2000 2009 2014Hispanic** Nationwide (in billions) 211.9 489.4 978.4 1,330.4* Tennessee 397,301 1,846,356 4,581,000 7,425,225* Georgia 1,328,827 6,326,695 15,112,814 24,069,123Asian* Nationwide (in billions) 116.5 268.7 508.6 696.5* Tennessee 474,356 1,499,935 3,156,177 4,952,406* Georgia 1,114,658 4,226,252 8,903,874 13,889,283* Note: Hispanic refers to a person of Mexican, Puerto Rican, Cuban or other Spanish/Hispanic/Latino culture or origin, and is considered an ethnic category rather than a racial group.Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, July 2009.MINORITY BUSINESS OWNERS IN THE CHATTANOOGA AREA** Female: 10,551* Black: 1,833* Hispanic: 318* Asian: 614* American Indian and Alaska Native: 388*Note: The Chattanooga Metropolitan Statistical Area includes Marion, Hamilton and Sequatchie counties in Tennessee, and Catoosa, Dade and Walker counties in Georgia.Source: U.S. Census figures, 2002
DALTON, Ga. – Lucila Luna opened a bridal and quinceañera shop three years ago because she saw potential for the business, but in the economic downturn it has decreased about 50 percent, she said.
Hispanics are among the groups most affected by job losses, and that in turn is having an impact on shops that rely primarily on their business.
“There are a lot of people without jobs or those who do have jobs who are trying to save money,” she said, standing inside El Palacio de las Novias, or “The Brides’ Palace,” surrounded by colorful pink, blue and green gowns. “There are a lot of events (such as quinceañeras, a girl’s 15th birthday celebration) that have been canceled.”
Although the number of jobs held by Hispanics is up by nearly 4 million nationwide from the beginning of the decade, the recession is hitting Hispanics hard, according to “The Multicultural Economy 2009,” a report by Jeffrey Humphreys, director of economic forecasting at the University of Georgia.
“The heavy concentration of Hispanics in the construction and hospitality industries undoubtedly accounts for many of the lost jobs,” the report states.
And while Hispanics are affected greatly, the economy doesn’t differentiate among races or ethnic groups.
In Hamilton County, the unemployment rate for December was 8.9 percent, compared to 12.6 percent in the Dalton area, but Chattanooga ethnic businesses still reported sales going down.
Anoose Taj opened a store offering Pakistani and Indian food in 1985, but it soon became an international grocery offering items from countries including Mexico, Peru, Nigeria and Thailand.
“People are still coming, but they are not buying as much as they used to,” said Mr. Taj, a native of Pakistan who came to Chattanooga 45 years ago. “If they come for one specific item, they’ll just buy that, when before they would come for one item but then shop for three items.”
Mexico native Concepcion Hernandez said her family is sticking to buying the essentials since she’ snot working and her husband only does odd jobs.
“I’m not working so we only buy strictly what we need,” said the 34-year-old as she walked out of Carnicerias Loa on Broad Street, with a small grocery bag. “Sometimes (the store) has sales and we buy that to stretch our money, but we don’t buy what we used to.”
Compared with Hispanics, Asians are faring much better in the economic downturn because of significant employment gains, many in professional and scientific fields, according to the Selig Center for Economic Growth, a research center of the Terry College of Business in the University of Georgia.
Nationwide, Asian buying power is projected to increase from $116 billion in 1990 to $697 billion in 2014. Hispanics’ purchasing power is projected to rise from $212 billion in 1990 to $1.3 trillion in 2014, the report states.
One thing that will help any business survive is diversity, said Dr. Bruce Hutchinson, professor of economics at the University of Tennessee in Chattanooga.
“Ethnic businesses, particularly businesses offering products that appeal to a particular ethnicity, are probably less likely to have a diverse clientele,” he said.
“If the clientele of that business falls on difficult economic times, the business will suffer significantly, whereas if they have a broader clientele, it might be that while one group gets hit hard, another doesn’t and eventually helps pick up business,” he said.
On average, Mrs. Luna said, her clients, primarily Hispanics, spend between $350 and $400 on wedding and quinceañera dresses. But during the last three years, prices have remained relatively flat or even decreased, she said.
To boost sales, she offers packages that include a decorated photo album, champagne glasses, bouquets and other accessories for the occasion.
“It’s a critical situation, but we have to be grateful for what we have,” Mrs. Luna said.