[March 08, 2006]

Latin commerce can grow even more: Study urges Puerto Rican entrepreneurs to tap lucrative business-to-business opportunities

(Orlando Sentinel, The (FL) (KRT) Via Thomson Dialog NewsEdge) Mar. 8--Central Florida's Puerto Rican residents are highly entrepreneurial, but most of the companies they create are mom-and-pop shops with limited opportunities for growth, a new study has found.

To prosper, Puerto Rican entrepreneurs must think beyond traditional ethnic niches and tap into broader, business-to-business opportunities in vibrant areas of the region's economy, the study concluded.

"There's nothing wrong with catering to the ethnic market. But the challenge long term for the region is to have a more inclusive business environment, too," said Felix Matos-Rodriguez, one of the study's three authors and an adviser to Puerto Rican Gov. Anibal Acevedo Vila.

The study, by the Center for Puerto Rican Studies in New York, was released last week at the Hispanic Summit, a two-day gathering of business and community leaders in Orlando.

It found that, from 1997 to 2002 alone, the number of Puerto Rican businesses grew by 37.6 percent to 3,343 companies. But most of those -- 92 percent -- have just one employee: the owner.

Moreover, most Puerto Rican businesses are narrowly focused on selling goods and services to the local population.

"Puerto Rican businesses are 'getting in the game' but learning 'how to play the game' as they go along," the study states.

Helping Puerto Rican entrepreneurs move from the minor leagues into the majors is key to raising the standard of living of the entire Orlando area, it says.

One of every 10 Central Floridians, and nearly half the region's Hispanic population, is Puerto Rican, the study found.

"The underlying message of the study is that multicultural inclusion pays off for everyone," Matos-Rodriguez said, adding that the study's conclusions generally apply to all Hispanic businesses. "This is going to benefit the entire region."

Elsa Gonzalez is one Puerto Rican entrepreneur who is ready to play ball.

Twelve years ago, Gonzalez opened a cell-phone store in a Kissimmee strip mall with her husband, William, who is Cuban-American.

Over the years, Viva Wireless has grown to seven locations. To brand their company, employees wear white guayaberas and Panama hats.

But now Viva Wireless plans to go statewide. The company just started selling franchises, and is advertising in Spanish and English to reach a broader customer base.

"We want to appeal to the entire population, not just the Latino community," Elsa Gonzalez said.

Within Central Florida, the study identified four key business "clusters" where Puerto Rican businesses can thrive and grow. They are hospitality and tourism, information technology, transportation and logistics, and business services.

Within those clusters, the study encouraged Puerto Rican businesses to target opportunity-filled "subclusters" -- and stay away from a few areas where growth likely would be limited:

In hospitality and tourism, entrepreneurs should target ground transportation, water-passenger transportation, and boat-related services, the study found.

In transportation and logistics, entrepreneurs should create strategic relationships with Puerto Rican-owned firms nationwide. Not recommended: air transportation, or transportation arrangement and warehousing.

In information technology, opportunities exist throughout the industry, except for in software, the study found.

In business services, opportunities abound in all areas except management consulting, computer management consulting, computer programming, facilities support services, and engineering services.

Dorimar Mercado can be reached at dmercado@orlandosentinel.com or 407-420-6063. Sara Isaac can be reached at 407-420-5564 or sisaac@orlandosentinel.com.

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