| Register/Subscribe Home |
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | | MAY 31, 2001 MANAGEMENT The Asian-American Business Explosion Census figures show Chinese, Korean, and Indian entrepreneurs are starting more businesses than any other ethnic groups in the U.S.
Receipts of Asian-owned businesses rose 68% between 1992 and 1997, according to Economic Census data released May 23. That growth compares to a 49% increase for Hispanic-owned firms, 33% for African-American owned companies and 40% for all companies, all in the same 5-year period. "Asians are clearly the most entrepreneurial of all entrepreneurial groups," says Saul Gitlin, vice president at Kang & Lee Advertising, a multi-cultural consulting firm in New York. "Entrepreneurial activity has long been entrenched in Asian cultures, which have a very rich commercial tradition." And that tradition has moved to the U.S. with Asian immigrants. EXPANDING HORIZONS. According to Census 2000 data, Asians now make up 25% of the foreign-born population in the U.S., vs. 9% in 1970. The 913,000 Asian-owned businesses employed 2.2 million people and generated $306.9 billion in revenues in 1997. The number of Asian-owned companies rose 30% between 1992 and 1997, vs. a 7% increase for all firms. "In recent years, they are running businesses that are better, bigger, and more sophisticated," says True Thao, president of the Hmong Chamber of Commerce in Minnesota. Case in point: Kathy Kwong's Euro-American Uniforms, which is based in Long Island, N.Y. Kwong, 49, grew up in Hong Kong and moved first to Canada, and then to the U.S. to study fashion design. After several years as a designer, Kwong opened her own business in 1990 to manufacture fashion garments for major department stores. A few years later, Kwong reoriented her business to focus on designing and producing uniforms for utility companies, airports, and banks. Her company now employs 25 people and took in $3 million in revenues last year. Her secret? "We found a niche in the uniform business," she says. "But the real niche is that we are capable of customizing no matter how small or big the order is, and we use the latest technology, too." SUPPORT SYSTEMS. Six out of 10 Asian-owned firms are located in California, New York, Texas, or Hawaii. Broken down by industry, 44% of Asian-owned companies fell within the services sector while 21% were retail businesses. Asian-Americans have established systems to help recent immigrants buy into existing companies, Gitlin explained, "so more people go into the same areas and industries because there is a ready-made infrastructure for them." Within the category of Asian-owned businesses, Chinese own the largest number of companies, followed by Koreans, and then Indian entrepreneurs. Chinese-Americans have traditionally dominated food services, but in recent years have used knowledge of their homeland to create U.S. businesses serving Chinese markets. Ning Yu Guang, for example, came to America in the '80s to manage a joint venture between the Chinese city of Shijiazhuang and Des Moines, Iowa. When the collaboration fell apart, Guang stayed in Des Moines and established Shine-Link as an import/export firm trading machinery parts for vending machines. "There are so many differences in the way of thinking and the way of managing business between America and China," Guang says. "That means lots of Americans want to do business with China through us." Shine-link took in $2 million in revenue last year. ONWARD AND UPWARD. Although first-generation Koreans established strong footholds in industries like green groceries and dry cleaners, second-generation Korean-Americans have moved into higher technology businesses. "The tendency is now to form more professional service companies," says Brendon Kim, president of the Korean American Society of Entrepreneurs. "But business is still seen as a form of security, and our parents, who were very entrepreneurial in nature, always said that the only way to control your future is to have your own business." Five years ago, Kim banded with four of his business-school buddies to found Altos Ventures, a technology venture-capital firm in Menlo Park, Calif. "We're going to see this trend more and more," he predicts, "because Korean Americans network with each a lot." Experts estimate that the number of Asian-owned small businesses will keep growing as continued immigration brings more Asians to the U.S. with higher levels of education and more substantial financial resources.  By Naween Mangi in New York Edited by Robin J. Phillips  | | |
 Copyright 2001 , by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Policy |
Printer-Friendly Version
