Queens Tribune
 
....March 2, 9:22 PM
 
 
   
Our Economic Future: Minority Businesses Taking The Lead

The Delgado Travel Agency

By JENNIFER POLLAND

Inside Delgado Travel Agency, men leaf through the pages of Ecuadorian newspapers while waiting for their numbers to pop up on the electronic “su turno” signs. In the background, Spanish telenovelas and soccer games flash on an army of flat screen TVs while a steady flow of people filter in and out of telephone booths.

The multi-million dollar company was founded 15 years ago by Hector Delgado, an Ecuadorian immigrant who saw a business opportunity when friends in his soccer league sought a cheap way to return to Ecuador. Today, Delgado Travel Agency Corp. has become a hub for the South American communities in Queens. The company has been so successful that it has grown into 31 locations in New York as well as dozens of locations in Mexico and Ecuador, and rakes in about $60 million a year.

Like so many businesses in Queens, this minority-owned company grew from a small business into a thriving corporation. Delgado Travel Agency may just be a sign of what’s to come.



America’s Future

By the year 2050, the U.S. Census Bureau predicts that minorities will become the majority. As the most diverse county in the United States, Queens functions as the perfect microcosm of the U.S.—a paradigm of America to come. So what better place to examine the impact of diversity on the economy?

In a borough as diverse as Queens, it makes sense that the minority owned businesses are thriving. According to a new study conducted by St. John’s professor Leonard Baynes, minority owned businesses in Queens will soon outnumber majority-owned businesses.

“We need to think of Queens as a laboratory, as this great mosaic of where America will be in the future,” Baynes said. “There is a clear trend in Queens that the minority businesses will soon be a majority. My prediction is that minority owned businesses will become a bigger and bigger portion of business throughout the country, and we need to get ready for that day.”

Spencer Ferdinand, executive director of Queens Economic Development Corporation, said that not only are minority owned businesses on the rise, they are ushering in major changes in the economy.

“Minority populations are undoubtedly growing across the country,” Ferdinand said. “They are bringing their own markets with new products and new needs, and people are trying to exploit these markets in Queens.”



A Telling Report

Baynes, a professor of law at St. John’s University School of Law, compiled the Q-626 Report, a study analyzing the diversity of the 626 largest businesses and the 405 largest minority-owned businesses in Queens.

“This study defeats stereotypes that may exist that may prevent people from investing in or trying to collaborate with minority-owned businesses,” Baynes said. “The most significant finding is that minority businesses are prospering; $7 billion in annual revenues is nothing to sneeze at.”

The report found that of the 159,668 businesses in Queens, nearly half of them— a whopping 74,300—are owned by minorities. It also found that the minority-owned businesses generated earnings of $7 billion per year—that is 12 percent of the total aggregate revenue in Queens.

The report ranked, based on revenue, the 626 largest for-profit businesses operating in Queens. It then separated those businesses into categories based on geographical location, ownership by race or ethnicity, industry and revenue.

According to the report, Asian-owned businesses constitute approximately 82 percent of the 105 largest minority owned businesses in Queens, and have the highest aggregate revenue of those businesses, collectively earning $1.58 billion. Of the 105 largest minority owned businesses in Queens, only nine are Hispanic-owned, and only four are African American-owned.

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Catering to the Community

The tenets of real-estate are simple: location, location, location. Although minority owned businesses are scattered throughout Queens, most of the larger corporations are clustered in dense minority occupied geographical locations. Jamaica has the most minority owned businesses with Flushing, Long Island City, Maspeth and Woodside respectively trailing behind.

“The concentration of these businesses in certain majority minority neighborhoods, such as Flushing and Jamaica, could have occurred for several reasons,” the report states. “First, these businesses may have started by providing goods, products, and services that are desirable and unique to these communities. Second, these businesses may feel more comfortable being located in racially homogeneous neighborhoods.”

Hispanic-owned Delgado Travel, located in the heavily Hispanic neighborhood of Jackson Heights, is thriving because of its loyal Hispanic clientele. Vice President Linda Delgado said that the company generally caters to immigrants from Mexico and Ecuador, and that it rarely gets clients outside of the South American community.

“The influx of immigrants from South America has really helped us expand,” Delgado said. “We mainly market toward the Latin American community because that’s who we know and the areas we are located in are generally full of minorities. We’re very dedicated to our customers because we really owe our success to the Latino community.”



Stepping Out of the Box

Although Delgado Travel has mastered its market and is even looking to expand to other Latin American communities in North Carolina and South Carolina, it hasn’t delved into other ethnic markets. These types of insulated business can be limiting, and can potentially exclude an enormous untapped source of revenue.

“Minority businesses are supplying goods and services to minority communities,” Baynes said. “But, that can mean that minority-owned businesses tend to be much more confined within their communities.”

According to the report, Asian-owned businesses are clearly taking the lead in Queens. Baynes suggested that it might be because, among other things, the Asian community in Queens has networking opportunities that allow them to expand their businesses.

“Some of the biggest issues most small businesses have are access to capital and access to networking opportunities,” Baynes said. “The Asian community in Flushing has created its own capital that is useful for its own success. I also believe that they may have better networks within their community to promote their own businesses.”

Flushing hosts the Flushing Chamber of Commerce, the Flushing Chinese Business Association, and the Flushing Development Center—all organizations that aim to assist the Flushing community in business.

Because of these networking opportunities, many Asian-owned companies, like Crystal Window & Door Systems, located in Flushing, have expanded outside of their narrow networks. In 17 years, the manufacturing company, founded by Taiwanese immigrant Thomas Chen, grew from a one-man operation based in the family’s garage to a formidable 420-employee corporation that rakes in more than $35 million in sales each year.

Steve Chen, the executive vice president of Crystal and the son of founder Thomas Chen, explained that the company’s success is due to its reputation, its breadth of services, and its widespread appeal.

“We don’t just cater to the Asian community,” Chen said. “Maybe we did in the first few years when the company started, but this is New York and everyone here is a minority. We sell to contractors and building owners all around the New York area. We are focused on a national program now; we really want to brand the Crystal name nationally.”



Paving The Way

If Queens is a microcosm of America, then it is perfectly poised to set the standard for the rest of the country.

“We have a chance in Queens, if we handle this correctly, to show how different groups can collaborate and work together,” Baynes said. “Diversity is very often our country’s strength, but we need to do more than just say we’re diverse. We need to have networks to support different diversities and have information flow between groups.”

Organizations like the QEDC and the Queens Borough Chamber of Commerce frequently have networking events, like luncheons, trade shows, business card exchanges, and seminars.

“We’re reaching out to minority owned businesses and helping them develop and improve,” said Bill Egan, executive director of the Queens Chamber of Commerce. “We have educational outreach programs and lots of networking events for business owners.”

Ferdinand said that the QEDC tries to connect businesses in Queens with its frequent events. It is currently preparing for Taste of Queens, an event that aims to connect food vendors of different ethnic and racial groups throughout Queens.

“These minority-owned businesses are showing that given the right tools and the right opportunities, they can compete and set up legitimate businesses that are beneficial to their communities,” Ferdinand said. “They have found ways to really exploit the markets that they’re in, despite language and culture barriers.”

But Baynes said he feels that more needs to be done. He urged “the official organs of our government and our business leaders” to heed minority-owned businesses so that everyone can take advantage of a money-making opportunity.

“There is an opportunity to make money here, but people will not see the opportunity if they don’t interact with each other,” Baynes said. “There needs to be more opportunities for people to come outside of their groups and communicate with other business owners. I think that will help us show the rest of the country how diverse groups can work together to profit, because in America we are all about working for profit.”

For Delgado Travel, a company that has grown exponentially because of its community, stepping outside of its comfort zone is difficult, but it may be the answer.

“Usually people in the Latin communities generally like to stay within their communities,” Delgado said. “But, growth is important to me, and if collaborating with another corporation means that Delgado Travel will grow, I would definitely be interested.”



Revenue By Owner's Race

Race/Ethnicity Aggregate Revenues of

Q-626 Businesses



Black/African- American $88,227,000

Hispanic $200,595,000

Asian $1,585,456,000

Middle Eastern $160,572,000

Other $30,160,000

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