BusinessTN

Hispanics are the fastest growing ethnic demographic and largest minority group in the United States. But, despite the fact that state and federal government recognizes Hispanics as a minority, the City of Memphis doesn’t see it that way.

The municipality’s minority and women business enterprise (MWBE) procurement program keeps Hispanic businessmen out of the running for government incentives by narrowly defining a minority as “those persons, citizens of the United States and lawfully admitted resident aliens, who are African American (persons whose origins are in one of the Black regional groups of Africa).” The MWBE ordinance was rewritten a few years ago to include women of any ethnicity. As a result, Hispanic-owned businesses are ineligible to bid as a minority-owned business on municipal projects like public schools, parking garages or the FedExForum. Members of the Hispanic business community are concerned that such a narrow definition could disenfranchise much of its entrepreneurial class.

“Hispanics provide the labor, but they don’t get to management level,” says corporate and immigration attorney Charles Blatteis, former president of Memphis’ Hispanic Business Alliance. Blatteis notes the ordinance isn’t unique. Shelby County had a similar policy that was thrown out after Mayor A C Wharton Jr. took office four years ago. Atlanta had a similar view of minorities until the Chamber of Commerce—with the help of Jesse Jackson—lobbied to change the wording to include Latinos.

Regarding the construction of the Forum, Blatteis finds it ironic that while he was asking for fair recognition of Hispanic contractors, there was no shortage of Hispanics actually building the basketball arena.

It’s no coincidence that Memphis’ Hispanic community is burgeoning at the same time the city is on pace for a record-setting housing boom. Behind agriculture, contracting is the second largest industry to employ Latinos.

“It’s shocking that in the 21st century we have to make a case for Hispanics to be recognized as a minority,” says Latino Memphis CEO Jose Velazquez.

Despite a policy that restricts the growth of economic influence, the Hispanic business community may well be reaching critical mass. “Hispanics are the largest segment of growth in small business in the country,” says Guillermo Meneses, spokesman for the U.S. Hispanic Chamber of Commerce, the largest advocate for the nation’s two million Hispanic-owned businesses. “In Memphis,” he continues, “the Hispanic community is growing into not only a social and political force, but an economic force, also.”

Sheer demographics may finally succeed where common sense has failed in crafting city policy. feedback: snow@businesstn.com