Towson University’s Outreach Blog

Clay

According to the 2010 census, Maryland’s minorities account for almost half of its population, and the numbers are expected to continue growing throughout the next decade.  There also has been a corresponding increase in entrepreneurial activity by minorities, and in 2010 there were 164,253 minority-owned businesses in the state.

What is causing this surge in business activity by minorities in Maryland?  A primary factor is the state’s relatively stable economy.  Maryland has not been as affected by the recession as some states, like California, Florida or Michigan.  Unemployment rates have continually remained below the national average.  This translates into an environment conducive to entrepreneurial ventures by all groups.  A recent statewide survey conducted for the Maryland Department of Business and Economic Development and the Greater Baltimore Technology Council, reported that 28% of all Marylanders have owned or operated a business… and many are minorities.

Additionally, Maryland’s prime location next door to the nation’s capital encourages both out-of-state and foreign companies to relocate or expand their operations here, which results in more jobs and increased investment.  Maryland also houses top-ranked schools and federal labs (e.g., FDA, NIH), which lure bright international individuals to the area.  And many of these people take their innovative ideas into the private sector for commercialization and development, spurring even greater economic activities.

By no means a new phenomenon, minorities, particularly those who migrate from other countries, have significantly changed the business environment because they bring a different mindset and cultural background, which enrich society and the economy.  They are generally pioneers and risk takers.

Such is the case of Debora Varon, owner of Izzy’s Chocolates.  Debora, originally from Lima, Peru, initially came to the United States to earn her Ph.D.  In 2009 she saw great opportunity in the fact that Peruvian desserts are a rarity in the US, and could potentially be tapped as a new market segment. She decided to launch her own business making and selling chocotejas, a delectable coupling of fine Belgian chocolate, dulce de leche, fruits and nuts. Some of her unique flavors include pecans paired with plum and apricot and pineapple. Her brand now has a presence in upscale supermarkets like Whole Foods and has a growing following.

TowsonGlobal Business Incubator has its own share of minority entrepreneurs as well, including Samuel Demisse from Ethiopia. Samuel owns and operates Keffa Coffee, which since 2003, has been importing high-quality Ethiopian coffee beans directly from the farmers in his homeland.  He then distributes his beans to roasters across the US as well as internationally.  The company now counts more than 100 roasters as customers in Canada and several Asian countries, including some of the most prominent in the industry.   Samuel’s standing as one of only 350 certified coffee cuppers (tasters) in the world guarantees his products’ high quality, which is one of the reasons Keffa Coffee continues gaining international recognition.

Similarly, there is Shoaib Mastoor, who was born in Pakistan and migrated to the US to complete his Bachelors in Electrical Engineering.  After graduating, he worked for various startups selling technology, and eventually joined the family business, which manufactures and fabricates steel furniture and equipment used by commercial offices in Pakistan.  In 2008, Shoaib launched Vulcan International, realizing his vision of creating a means for promoting brands that are manufactured by tier one companies in other countries but are not able to market their products in the world’s largest market, the US.  With vendor alliances from Pakistan, Vulcan has instant credibility with suppliers in South Korea, Italy, Germany and China, who the company is representing in the US.

Minority entrepreneurs such as Debora, Samuel and Shoaib, continue to add creative and innovative new elements to our economy. Efforts like expanding the small business tax credit and facilitating initiatives that will unlock venture capital will allow small businesses of all kinds, including those owned by minorities, to develop those innovative ideas, thus helping create the jobs that are so vital for achieving sustainable growth.