Chattanooga ranks third for Hispanic growth

Economic influence lags here, though

photo ESOL teacher Cassie Rose directs her class in an assignment Friday, Aug. 22, 2014, at Howard School in Chattanooga, Tenn. Howard, which has been a historically black school, has a growing population of hispanic students.

Highest Hispanic population growth1. Montgomery, Ala.2. Huntsville, Ala.3. Chattanooga4. Fayetteville, N.C.5. Miami, Fla.Highest number of Hispanics per capita1. Laredo, Texas2. Hialeah, Fla.3. Brownsville, Texas4. El Paso, Texas5. Santa Ana, Calif.Highest share of businesses owned by Hispanics1. Hialeah, Fla.2. Laredo, Texas3. Brownsville, Texas4. El Paso, Texas5. Miami, Fla.Source: WalletHub

Numbers aren't everything.

Chattanooga's Hispanic population more than tripled between 2000 and 2010. But that growth may not have translated to the local economy.

An analysis by personal finance social network WalletHub ranked Chattanooga third among the 150 largest U.S. cities for growth in the Hispanic population. Yet the Scenic City ranked closer to the bottom of the list for Hispanic purchasing power and business friendliness toward Hispanics.

With a population of 54 million, Hispanics now make up the nation's largest ethnic or racial minority, and by 2050 could make up a third of the population. And their influence on the economy is only growing -- more than 3 million Hispanic-owned businesses rake in nearly $500 million in annual revenue, according to the United State Hispanic Chamber of Commerce. Chamber President and CEO Javier Palomarez has called Hispanic entrepreneurs "America's business future."

Despite being ranked high for its growth, Chattanooga's Hispanic population is still relatively small. Of about 168,000 residents, 9,891 are Hispanic -- about 6 percent, according to 2012 Census figures. Nationally, Hispanics constitute 17 percent of the total population.

WalletHub used census data and other metrics to rank cities. Three other cities on its top five list for growth are in the Southeast: Montgomery and Huntsville, Ala., and Fayetteville, N.C. Among the 150 largest U.S. cities, Chattanooga ranked 116th for Hispanic purchasing power and 90th for business friendliness.

But Chattanooga is becoming more welcoming to Hispanics and Hispanic business owners, said Stacy Johnson, executive director of La Paz, an advocacy and educational organization for the Latino community.

"I really think it has been more difficult in the past," she said. "But I think over the last several years, the community has really opened their arms for the Latino population."

Still, she said, it takes time for an immigrant population to mature and become established, especially within the business community.

"We started 10 years ago and we're still working with some of the same people," Johnson said. "So it definitely takes a lot of time to plan programs and work with the community. Most of that is just gaining trust."

It's obvious that immigrants often enter the United States seeking better employment opportunity. But oftentimes, they bring with them a strong appetite for entrepreneurship, said Ivette Rios, a small-business adviser at the Small Business Development Center.

Rios works with many fledgling business owners. And because she's bilingual, she helps many Spanish-speaking individuals with various business development issues. Many come from countries with high unemployment and already have experience in entrepreneurship. Some even started businesses as children.

"There's a lot of that," she said. "They come to this country and want to start and go."

Rios, who is from Mexico, lived in Dalton for 15 years before moving to Chattanooga. In Dalton, Hispanics make up nearly half the population. Census data show about 15,000 Hispanics among Dalton's population of about 33,000. Rios said there seemed to be more integration of Hispanics into the city's business community than she sees in Chattanooga. But she said that's likely to change as more Latinos get established here.

"There was a lot of interest from the general community to acquire that Hispanic buying power, which is very strong," she said. "I don't see that community awareness or initiative as much here."

Contact staff writer Kevin Hardy at khardy@timesfreepress.com or 423-757-6249.

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