CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
FINAL MARCH 11 – FOR POSTING ON WEBSITE
RAPPORTEUR’S SUMMARY
“The tired, poor, huddled masses who arrive on America's shores yearning to breathe free actually bring talent, youth and global connections. Some create jobs; others do the work most natives shun. And they prosper . . . America is built on immigration.” – The Economist,
“Immigration in America: The Melting Pot Works” February 5, 2015
“ I love the American people. It’s been difficult since I have 9 kids, some here, some in
Africa. But I have a business and I pay taxes to help this country that helped me. I worry about what I can do to keep my family close . . . But . . .You guys, I love you .” – a participant
Glass-walled, lofted, and warm, the Portland Public Library’s street-level community sitting room and cafe gave respite from the darkness falling in the coldest February on record. Inside this living room for the city, an array of people gathered quietly to read iPads, research college papers, drink something warm, or email family outside the U.S.
– while others headed into Rines auditorium for the second event in the Celebrating
Immigration series. We want to be your neighbors, to create jobs, to pay taxes. We want to be part of you.
The topic for the evening was “Immigrant Entrepreneurship and Business Success.”
The gathering at Rines was about to get down to business.
World Affairs Council of Maine’s Executive Director Amy Holland welcomed the almost full house – a rich mix of youth, business people, series sponsors, service providers, entrepreneurs, foundations, those in government, and families – the sectors, she said, that need to come together to grapple with how immigrants can start businesses and make them sustainable. What works? What’s in the way? How do we overcome it?
Above Ms. Holland’s head, a slide show rolled out facts:
 “Immigrants . . . are 30% more likely to start new businesses than native-born .” –
Center for an Urban Future, “Immigrant Entrepreneurism: An Engine for Economic
Recovery” December 2009
 “In the United States, immigrants now launch more than a quarter of businesses.”
– Inc., Magazine, “The Most Entrepreneurial Group in America Wasn’t Born in America”
November 2014
 Barriers . . . include English proficiency, cultural barriers and a limited business experience and/or regulatory process of the U.S. . . . an inability to access financing or start-up capital.”
 “Immigrants as business owners contribute to economically distressed areas [and] neighborhood main streets.”
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
FINAL MARCH 11 – FOR POSTING ON WEBSITE
 “From 1996 to 2011 the business startup rates of immigrants increased by 50 percent, while the native-born startup rate declined by 10 percent .” – Inc., Magazine,
“The Most Entrepreneurial Group in America Wasn’t Born in America” November 2014
 “46% of America’s venture-funded companies had at least one immigrant founder.“
– Inc., Magazine, “Immigrants Found Nearly Half of Top Start-ups” December 2011
 “Although the majority of immigrants are from Canada, the United Kingdom, and
Vietnam, African immigrants make up more than 14 percent of the foreign born population in Maine, compared to 4 percent for the entire U.S
.” – The Impact of
Immigration Across the Nation, 2011
 “32.9% of STEM graduates [in Maine] are foreign born ” – Partnership for a New
American Economy, 2006- 2010
 “119 million: Annual business income generated by immigrants [in Maine] –
Partnership for a New American Economy, 2006- 2010
 “Two of the state’s largest companies, Fairchild Semiconductor International and the American Skiing Company, were founded by immigrants or their children.
With corporate offices in South Portland, Fairchild Semiconductor International employs almost 8,000 people worldwide and brings in more than $1.5 billion in revenue each year.” – The Impact of Immigration Across the Nation, 2011
The interactive conversation that would follow included many in the audience, a great deal of concrete experience, and frustration mixed with satisfaction and gratitude. In the end strong themes included:
 Desire to work, to be entrepreneurial, and to “give back” to the U.S. are assets immigrants bring to the table
 Educational background, often at higher levels and more prevalent than that in Maine’s native-born, is an asset immigrants bring to the table
 Mainers’ generosity of spirit and willingness to help are assets from which immigrants benefit
 American culture of marketing and competition is often unfamiliar to immigrants and can constitute an obstacle
 American bureaucracy’s rules, requirements, and time delays, are often obstacles for immigrant entrepreneurs
 English proficiency is a common initial obstacle for immigrants wanting to start businesses
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
FINAL MARCH 11 – FOR POSTING ON WEBSITE
 Financial literacy, including the ability to create a business plan, is also a common obstacle for immigrants who wish to be entrepreneurs
 Access to capital is an obstacle for immigrant start-ups o scarcity of Sharia-compliant banking o “creditworthiness” – lack of good current job, lack of credit history
 Once immigrant businesses are started, scaling up to move toward sustainability is also an obstacle for immigrants
 Systematic networking and a cohort of business advisors available to immigrant entrepreneurs would help address many of the themes here
 CEI, Community Financial Literacy (CFL), Maine Center for Entrepreneurial
Development (MCED), and ScaleUp Portland are among the business development resources available to the immigrant community
To begin, Ms. Holland introduced the opening speaker, Steve DiMillo, General Manager of DiMillo’s on the Water, and the evening’s moderator, John Spritz, Manager of the
Growing Portland collaborative.
* * *
A family that transformed Portland: the DiMillos’ Italian immigrant story.
Offering the history of hard work and success for his family, and its impact on so many around them, Steve DiMillo gave a warm and authentic account of his forbears and his own place among them as their business and community involvement grew.
Steve’s father, Tony DiMillo opened his first restaurant, "Anthony's" in 1954 on Fore
Street. He had immigrated with his own parents and siblings to the U.S. through
Canada. Tony’s Italian father worked in the Portland Stove Foundry – but it was hard to keep food on the table.
When Tony was 13, he rented a storefront with a pinball machine, magazines, and sundries, establishing a niche in the neighborhood. The landlord wanted to evict Tony and keep the pinball machine – but Tony had built up community trust and the pinball machine owner wouldn’t sell.
After serving in the Korean War, Tony saved all his money to buy the inventory of the
Fore Street restaurant. Discrimination against Italians was a reality, but people were willing to put their prejudices to one side for food! Steve sees food as a theme in immigrant life.
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
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The obstacles Steve’s dad Tony faced included lack of education – something that may be more accessible to immigrants today. Steve wonders whether today’s immigrants to Portland feel as unwelcome as the DiMillos sometimes did – in fact, so much so that
Italian was forbidden in the DiMillo home.
All in all, Tony’s success in the restaurant and real estate businesses (purchasing the
Long Wharf, helping to transform the Old Port into what it is today) has been founded on community support. Steve himself started work in 1968 as a dishwasher and has held all positions in the family business along the way, working with 11 other family members and many long-term staff, including both of his children, who represent the third generation in the business. Steve gives great credit to Portland for being such a progressive town.
* * *
Community dialogue.
With the opening words, “People from other lands bring us extraordinary bounty and human capital,” Mr. Spritz introduced the panelists, who represented different facets of the immigrant entrepreneurial experience. He turned the floor over to them for an interactive Q&A with him and later with the audience.
But first, Mr. Spritz asked for 5-7 from the panelists – starting with the business people and the subject of the issues and hurdles to founding their own enterprises.
 Nagham Rikan, with her two brothers, the owner and manager of Babylon
Restaurant in Portland, is from Iraq and came to Maine in 2011. Their restaurant opened in 2012 and they bought the business in 2014. They serve
Iraqi and Middle Eastern food at the restaurant in Morrills Corner.
Nagham said that it was not easy to start her business, but also not impossible.
The problem was not how to go about it, but how to go about it in the U.S., whose requirements and customs are entirely different from those in Iraq. It is a struggle to understand the American culture, expectations, and market. In
Iraq, one simply forges ahead with skill and starts a business out of love for the surrounding community. Here in America, it is different. Without the support of CEI, and Tae Chong in particular, she would not have made it. Now the restaurant is doing well, if not great.
 Hussein Ahmed, owner of Barwaqo Halal market in Lewiston, came to the U.S. from Somalia in 2001 and to Lewiston in 2002. His grocery store offers halal meats and services including bill payment, money transfer/remittance, and interpretation. Mr. Ahmed is also a landlord.
Hussein sees a strong similarity between new and native-born populations in the U.S. – they are hard-working, and that’s the “beauty part” in his view.
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
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However, the challenges involved in starting his own business included:
 access to capital –specifically, Islam’s prohibition on charging or giving interest on lending and the scarcity of Sharia-compliant banking
 language proficiency
 balancing work, family, and ESL training
 navigating the large American bureaucracy
 American banks unwilling to support halal
 American regulations
 Faysal Kalayaf, owner of Sindibad Market in Portland since 2009, is from Iraq and came to the United States in 2007, when he began working as an interpreter at Catholic Charities, a service he still provides there.
He landed in Auburn when he first arrived in the U.S. and looked for work, but things were difficult. Someone helped him approach the City of Auburn, but only volunteer positions were available. Catholic Charities helped him secure his first job as an interpreter in Portland for those seeking medical services.
Faysal observed that in Auburn there were stores stocking Somali goods for
Somali consumers, but virtually no Middle Eastern products, as there were few
Iraqis in the Lewiston area. On the other hand, the Iraqi community was growing in Portland, yet doing so without a Middle Eastern grocery. Faysal went to CEI for business start-up advice.
Because he had significant trouble obtaining a bank loan, one of Faysal’s friends lent him $15,000, with which he started his store. This was generous, but not enough, as the opening and shelving alone cost $5000. The City of Portland helped him with licensing and he enjoys many customers from the Afghani,
Sudanese, Somali, and Iraqi communities in Portland. He now offers groceries, payment systems, cell phones. The key to success is good customer service.
Obstacles he faced included:
 obtaining funding for his new business – difficult to get bank funding if he didn’t already have a good job, and he had nothing
 sourcing products – Somali store owners helped him locate distributors in New York City and Chicago
 Claude Rwaganje, born in the Democratic Republic of the Congo and a refugee in Central Africa in the early 1990s, is Founder and Executive Director of
Community Financial Literacy (CFL), a refugee owned non-profit organization based in Maine with a mission to empower the lives of refugee and new
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
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Claude tries to help people understand U.S. financial mechanisms, something that challenges many CFL customers. Because CFL aims to move its customers from financial literacy to stability, the organization emphasizes higher education. This is especially important when customers have come to the U.S. from refugee camps and need courses to get back on track for their careers.
Student debt becomes an issue. CFL serves 300 people annually, helping them to establish credit, write business plans, and gain access to college.
Claude sees the following realities as posing obstacles to immigrants:
 access to capital
 no credit history
 credit did not exist in home country
 bankers do not trust these new small businesses
 need a good job now to help establish credit
 bureaucracy, including licenses and inspectors, and need to write a business plan
 in home country, could establish a business in 1 day
 in the U.S. it takes months
Claude emphasized that, despite these obstacles, immigrants like CFL customers create jobs for themselves and for others who don’t yet speak
English. These job creators pay sales and income tax. In fact, CFL itself, which takes a unique approach that supplements that of CIE and Maine Association of
Nonprofits, has a staff of 5 – who also pay Maine sales and income tax.
 Tae Chong, a Business Counselor at CEI's StartSmart Program, holds an MBA from the University of Southern Maine. (CEI is a rural Community Development
Corporation (CDC) and a Community Development Financial Institution (CDFI).
It work consists of funding, lending and investing in small and medium sized businesses, and providing business support and technical counseling services to those who need them.)
He saw business expansion as a core challenge, and began with some facts.
 37% of kids in Portland’s public schools are ESL learners
 there are 10,000 Muslims in Lewiston and Portland combined
 restaurants and groceries are entry points for these immigrants
What is needed now is a mode of expanding immigrant startups so that they are sustainable. This requires an understanding of the market and that, in turn, requires business counselors. (Popular Mechanics recently cited Portland as a
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
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Credit is a central challenge. The banking industry should take note that 10,000
Muslims comprise 2000 households x $30,000 = $60,000,000 opportunity. A stumbling block is the Sharia prohibition on interest. CEI makes Sharicompliant loans, but only 50.
To create employment opportunities, an employment consortium could help service providers hire refugees while providing supports like transportation fare. At Portland Adult Education, 70% are unemployed. This represents a large need.
Mr. Spritz: It appears that banking distinctions are important in this conversation, and that it is difficult to get a Sharia compliant loan from a western bank. Has any bank addressed this and made an adjustment?
Ms. Rikan: There is one such bank in Boston. Working with a fee might help.
Mr. Spritz: So a fee would work?
Mr. Chong: Yes, and there is a big market for this type of arrangement.
Mr. Spritz: There are no banks here today, but to summarize, lack of access to capital creates obstacles for starting immigrant businesses?
Mr. Ahmed: Yes, though language constitutes an added obstacle. Androscoggin
Bank and Bates College have studied the question of Sharia compliant lending, but state and federal regulations constitute an obstacle as well. It’s worth keeping in mind that the interest issue also applies to home ownership, thus making the potential market for Sharia compliant loans even larger.
Mr. Kalayaf: Language constitutes the first obstacle. Even with help from CEI, how can you work in a car dealership if you can’t bid on cars at auction or call the auto body shop? As for the interest issue, options include paying back your loan all at once (not realistic). Late fees are not permitted, as they are seen under Sharia law as interest. On the other hand, it is permissible to pay an up front fee to borrow, but no installment payments are allowed.
Mr. Spritz: Are other cities dealing with this interest issues? Are there models
Portland can follow? And on another subject, is the immigrant focus on starting foodrelated businesses limiting?
Mr. Ahmed: It is important to start within the comfort zone of the community, and then move beyond it. Services must expand.
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
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Mr. Chong: Keep in mind that 15% of the U.S. population consists of immigrants, but 40% of STEM Ph.D.s in the U.S. consists of immigrants. Second generation immigrants are likely to accelerate their integration and success.
There is a very high number of immigrant and refugee kids in the Portland school system, and though they might not graduate on time, they exhibit high educational persistence – and their graduation attainment is higher than that of
Maine’s native-born population.
Additionally, Seeds of Peace and similar organizations help second generation immigrants succeed.
Second generation immigrants come back in their 30s with Ph.D.s and are accomplished, especially in the Muslim community.
Mr. Rwaganje: Among Portland’s 60,000 people, 15% are immigrants, and their children comprise 30% of Portland schools’ students. It is time to embrace this change and enjoy the synergies of cooperation, especially as it can help Maine’s aging population. Things are moving fast, and it is not necessary to wait another generation. Tap immigrant skills now; this generation is ready to go.
Small businesses need community support, and elsewhere, cities are promoting integration. Tools include Community Development Block Grants and technical assistance.
Mr. Spritz: Noting that there are audience members here from the City of Portland, is there a way to create a niche to maneuver the bureaucracy?
Mr. Rwaganje: Maneuvering the bureaucracy should be facilitated for all, but tailored for immigrants. The city of Dayton, Ohio has a Mayor’s Office position to represent immigrants and refugees.
Q&A with audience:
Q: Please explain CEI.
A: Mr. Chong responded. In 1977, CEI was started as a CDFI nonprofit and community bank. It invested primarily in local businesses, focusing on areas like agriculture, fisheries, and small businesses. CEI’s StartSmart component began counseling immigrants and refugees. CEI provides loans from $5000 to
$1 million.
Q/observation: I am Don Gooding, Executive Director of the Maine Center for
Entrepreneurial Development (MCED), a private nonprofit founded in 1997, and that helps entrepreneurs grow through innovation.
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
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 With respect to the Sharia law, consider crowdfunding, in which
MCED has offered a panel discussion. Consider also models like
Kickstarter, which is designed for creative projects. In all, there are about 500 crowdfunding platforms.
 Facing long start-up times is common. Consider collaborations among small business owners to speed start-ups for everyone.
 For business expansion, consider ScaleUp Portland (an initiative of the U. S. Small Business Administration’s ScaleUp America) at which I am teaching tonight. From the website at scaleupportlandme.com
: “[T]here is opportunity for additional support for business owners from underserved populations within the city . . . ScaleUp assists in establishing a forum for these businesses to meet, and graduates of each cohort joining this forum are a positive example for other Portland Maine business owners.”
 ScaleUp collaborates with MCED’s Top Gun Entrepreneurship acceleration program. No immigrants are involved yet, and I want to fix this, to tap immigrant leaders and their communities.
 We are holding an online class soon. To the first 10 immigrants who sign up, I’m offering a scholarship. (Applause.)
Q/observation: With General Assistance cutbacks, many cannot afford ethnic foods and must go to Walmart, which squeezes ethnic business owners. It is ethnic business owners who put money back into the community.
Mr. Spritz: There seems to be an explosion of Iraqi/Middle Eastern establishments in neighborhoods like Woodford’s Corner. Is there too much competition?
Ms. Rikan: It is not competition, it is support. This country is full of opportunity, and the people of Portland are willing to give of themselves. Her own customers are always trying to figure out how to help her.
Mr. Kalayaf: The competition pushes you to think about how to attract customers. He is not afraid of it.
Mr. Chong: When you see more Muslim stores open, the place becomes a destination. The DiMillo family went to New York City for foods, Mr. Chong’s family went to Boston for foods, especially to the Asian markets that had revitalized Southie. These places were destinations, just as a critical mass in
Portland might be for New Hampshire and even Boston. This would combat the big box stores and revitalize neighborhoods.
Q: As a business person, I congratulate you on this program, but we are preaching to the choir. Are there any bankers here? (There was one, who identified herself to applause.) We must get the business community to accept the immigrant community
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CELEBRATING IMMIGRATION: SESSION #2 – FEBRUARY 25, 2015
FINAL MARCH 11 – FOR POSTING ON WEBSITE as an asset. The political climate is filled with suspicion of New Americans and treats them as though they are cheating. Get bankers and employers in the audience to tap the value of the excellent people here and the thousands who are arriving – especially since Maine is losing population.
A: Mr. Rwaganje responded that this was an excellent observation, and that the series is meant to educate the host country as well as immigrants. Otherwise, politics gets in the way. There are two conflicting messages out there:
 the beauty and prosperity of immigrants
 immigrants as takers
The point is that immigrants want to be part of a growing economy, we want to give, we want to make you better, we want to be part of you.
Q: Congratulations to all of you on starting your own businesses. I’ve done the same.
Think about Groupon, Living Social. How about an ethnic foodie tour? (Applause.)
Q/Observation: I am Alain Nahimana, and I observe that most immigrant small businesses do not join mainstream business organizations. It is important to know one another, network, gain visibility. Small businesses also need to reach across cultures for mutual support – Middle Eastern, Asian, Hispanic, African, and so forth.
Q: I have owned my interpreter service for 11 years. Alain took my topic! Let’s talk among and about “us,” even though I like competition. Don’t let this conversation end here. Explore how to move forward to assist immigrants in succeeding in business.
Q: I am a woman who now owns her own grocery, though I never thought I would.
Without CEI, I would not be here. When I arrived in the U.S. 4 and a half years ago, I didn’t have a word of English – and now I believe people understand me, and I am the manager of my own business. I love the American people. It’s been difficult since I have 9 kids, some here, some in Africa. But I have a business and I pay taxes to help this country that helped me. I worry about what I can do to keep my family close. I consult with Claude and study business. English was an obstacle. But Tae and Claude, they took me like a baby. We all need more training, especially for all the papers we have to deal with. You guys, I love you.
On that note, the evening ended. Ms. Holland reminded the audience that the next event in the Celebrating Immigration series will take place on March 18, from 7:00 a.m. to 9:00 a.m. at the Holiday Inn by the Bay in Portland, and will seek solutions to address many of the challenges that emerged tonight.
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