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Entrepreneurs Succeed
Across Ethnic Lines
By PAULETTE THOMAS
Staff Reporter of THE WALL STREET JOURNAL
>From The Wall Street Journal Interactive Edition
Collard greens with wontons. Fortune cookies with black-eyed peas. Indian
mythology and Latin folklore.
Such unlikely combinations are the work of some entrepreneurs who are treading
across ethnic boundaries to forge new business relationships and expand their
markets.
There's Van Woods, president of Sylvia Woods Enterprises in New York, which
markets a line of soul food. He has struck a deal for Asian-owned stores around
New York to distribute the collard greens and other canned foods created by his
restaurateur mother, Sylvia Woods (owner of Sylvia's in Harlem). After all, he
reasons, many Asian stores are in urban neighborhoods where African-Americans
shop. And perhaps Asian customers will give Sylvia's foods and spices a try too.
The deal "isn't just something cute to do," says Mr. Woods. "It's an entree into
us doing business together."
It's nothing new for minority businesses to trade on their ethnic heritage, with
blacks targeting blacks and Asians targeting Asians. And many minority
entrepreneurs dream of breaking out into a larger white mass market.
Growing Minority Population
But increasingly, minority business owners are entering cross-ethnic marketing
deals because of the growing numbers: Consider that African-Americans, Asians
and Hispanics total about 27% or so of the U.S. population, with about $900
billion of purchasing power. "We are talking about new ways to do business, and
new opportunities," says John Wang, who has launched a business group called the
New Majority, based in New York. The group's name recognizes that in many
cities, including New York, the combined populations of ethnic groups constitute
a majority of residents.
The purpose of the New Majority is to bring business people from different
ethnic groups together, and look for ways to collaborate. The new demographics,
Mr. Wang says, can help business owners attract capital and break into new
markets. "This is self-reliance through partnerships," he says. "We don't want
handouts."
But as in anything involving race, there can be tension and wariness. Over the
years, the friction between, for example, residents in African-American
neighborhoods and Asian businesses, has occasionally erupted into violence. To
help business people feel comfortable in other areas, Mr. Wang's group has
organized tours of the Asian businesses in Queens, Hispanic businesses in the
Bronx, and black business neighborhoods throughout New York.
The group also comes together for seminars on nuts-and-bolts business issues
that affect any small business owner, such as export and import regulations and
how to create joint ventures.
Database of Suppliers and Customers
The New Majority helps to foster the relationships by maintaining a referral
database, so businesses can contact suppliers or customers through the network.
An African-American-owned office furniture company is linking up with a
Taiwanese-owned company to distribute and perhaps manufacture office furniture
together.
Other businesses have found unexpected markets. Mr. Wang has scouted the Chinese
food stores on behalf of a Puerto Rican chicken farmer, and found an interest in
chicken feet, a Chinese delicacy. "It's amazing how many of these deals revolve
around food," he says. "It brings people together."
It isn't always enough just to put people together, however. Bonnie Wong,
president of Asian Women in Business, held a similar seminar last June for
minority businesswomen, in hopes that joint ventures would spring from it. Along
with her group came members of One Hundred Hispanic Women and One Hundred Black
Women, organizations of professional women.
It brought business owners together, but the grand total of joint ventures from
it: zero. Ms. Wong was disappointed. "The problem is my [Asian] group is
small-business owners," she says. "Their groups were more corporate types." But
she noted that some of the black women represented corporate-procurement
diversity efforts, and hoped that some of the ethnic-owned businesses might sell
goods or services to them.
"But it was important just to get together to break down stereotypes," says Ms.
Wong, such as the notion of the quiet Asian. "Some people were surprised to see
me," she says. "I talk way too much." Another cross-ethnic women's seminar is
planned in New York early this summer.
Ethnically Flavored Dog Treats
Outside of these networks, other businesses with quirky ethnic roots are
springing up, especially among younger entrepreneurs. For example, there is
Corina's Biscuits, an unlikely enterprise in Athens, Ohio, that sells ethnically
flavored dog treats.
Two recent graduate students in film school at Ohio University, Julie Kim, a
Korean-American, and Deana Bass, an African-American, founded the business in
part because of their own love of ethnic foods. They were also struck that in
their small college town there seemed to be more Asian restaurants than burger
joints. "Everybody enjoys different ethnic foods," says Ms. Kim. "We thought:
Wouldn't it be great for dogs to join in the fun?"
They launched the business after testing and making the product for an animal
shelter fund-raiser. They are in just 20 small stores now in the Midwest -- no
chains yet -- but the pair are starting to make the rounds of trade shows and
grocery chains, with their 30 flavors in fancy packaging, including Mongolian
beef, Korean barbecue, chicken taco and chicken parmesan.
Another young entrepreneur is 30-year-old Bhana Grover, whose Niche Media Inc.
in Philadelphia markets CD-ROMs of tales from Indian mythology. Using
direct-mail marketing from lists of Asian doctors, she began selling "The Story
of Ganesha," a Hindu tale, as well as a CD-ROM about the Taj Mahal that has also
proven popular with Caucasian buyers. Now, she is completing a deal to sell
Jewish folklore and Hispanic legends for an educational publisher. And she knows
that she needs help for that.
"I think I have a good understanding of the Latino market," she says, "but I
have to employ people from the culture if I want to make this work."
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By PAULETTE THOMAS =
From The Wall Street = Journal=20 Interactive Edition
Collard greens with wontons. Fortune cookies with black-eyed peas. = Indian=20 mythology and Latin folklore.
Such unlikely combinations are the work of some entrepreneurs who are = treading across ethnic boundaries to forge new business relationships = and expand=20 their markets.
There's Van Woods, president of Sylvia Woods Enterprises in New York, = which=20 markets a line of soul food. He has struck a deal for Asian-owned stores = around=20 New York to distribute the collard greens and other canned foods created = by his=20 restaurateur mother, Sylvia Woods (owner of Sylvia's in Harlem). After = all, he=20 reasons, many Asian stores are in urban neighborhoods where = African-Americans=20 shop. And perhaps Asian customers will give Sylvia's foods and spices a = try=20 too.
The deal "isn't just something cute to do," says Mr. Woods. "It's an = entree=20 into us doing business together."
It's nothing new for minority businesses to trade on their ethnic = heritage,=20 with blacks targeting blacks and Asians targeting Asians. And many = minority=20 entrepreneurs dream of breaking out into a larger white mass market.
Growing Minority Population
But increasingly, minority business owners are entering cross-ethnic=20 marketing deals because of the growing numbers: Consider that = African-Americans,=20 Asians and Hispanics total about 27% or so of the U.S. population, with = about=20 $900 billion of purchasing power. "We are talking about new ways to do = business,=20 and new opportunities," says John Wang, who has launched a business = group called=20 the New Majority, based in New York. The group's name recognizes that in = many=20 cities, including New York, the combined populations of ethnic groups = constitute=20 a majority of residents.
The purpose of the New Majority is to bring business people from = different=20 ethnic groups together, and look for ways to collaborate. The new = demographics,=20 Mr. Wang says, can help business owners attract capital and break into = new=20 markets. "This is self-reliance through partnerships," he says. "We = don't want=20 handouts."
But as in anything involving race, there can be tension and wariness. = Over=20 the years, the friction between, for example, residents in = African-American=20 neighborhoods and Asian businesses, has occasionally erupted into = violence. To=20 help business people feel comfortable in other areas, Mr. Wang's group = has=20 organized tours of the Asian businesses in Queens, Hispanic businesses = in the=20 Bronx, and black business neighborhoods throughout New York.
The group also comes together for seminars on nuts-and-bolts business = issues=20 that affect any small business owner, such as export and import = regulations and=20 how to create joint ventures.
Database of Suppliers and Customers
The New Majority helps to foster the relationships by maintaining a = referral=20 database, so businesses can contact suppliers or customers through the = network.=20 An African-American-owned office furniture company is linking up with a=20 Taiwanese-owned company to distribute and perhaps manufacture office = furniture=20 together.
Other businesses have found unexpected markets. Mr. Wang has scouted = the=20 Chinese food stores on behalf of a Puerto Rican chicken farmer, and = found an=20 interest in chicken feet, a Chinese delicacy. "It's amazing how many of = these=20 deals revolve around food," he says. "It brings people together."
It isn't always enough just to put people together, however. Bonnie = Wong,=20 president of Asian Women in Business, held a similar seminar last June = for=20 minority businesswomen, in hopes that joint ventures would spring from = it. Along=20 with her group came members of One Hundred Hispanic Women and One = Hundred Black=20 Women, organizations of professional women.
It brought business owners together, but the grand total of joint = ventures=20 from it: zero. Ms. Wong was disappointed. "The problem is my [Asian] = group is=20 small-business owners," she says. "Their groups were more corporate = types." But=20 she noted that some of the black women represented corporate-procurement = diversity efforts, and hoped that some of the ethnic-owned businesses = might sell=20 goods or services to them.
"But it was important just to get together to break down = stereotypes," says=20 Ms. Wong, such as the notion of the quiet Asian. "Some people were = surprised to=20 see me," she says. "I talk way too much." Another cross-ethnic women's = seminar=20 is planned in New York early this summer.
Ethnically Flavored Dog Treats
Outside of these networks, other businesses with quirky ethnic roots = are=20 springing up, especially among younger entrepreneurs. For example, there = is=20 Corina's Biscuits, an unlikely enterprise in Athens, Ohio, that sells = ethnically=20 flavored dog treats.
Two recent graduate students in film school at Ohio University, Julie = Kim, a=20 Korean-American, and Deana Bass, an African-American, founded the = business in=20 part because of their own love of ethnic foods. They were also struck = that in=20 their small college town there seemed to be more Asian restaurants than = burger=20 joints. "Everybody enjoys different ethnic foods," says Ms. Kim. "We = thought:=20 Wouldn't it be great for dogs to join in the fun?"
They launched the business after testing and making the product for = an animal=20 shelter fund-raiser. They are in just 20 small stores now in the Midwest = -- no=20 chains yet -- but the pair are starting to make the rounds of trade = shows and=20 grocery chains, with their 30 flavors in fancy packaging, including = Mongolian=20 beef, Korean barbecue, chicken taco and chicken parmesan.
Another young entrepreneur is 30-year-old Bhana Grover, whose Niche = Media=20 Inc. in Philadelphia markets CD-ROMs of tales from Indian mythology. = Using=20 direct-mail marketing from lists of Asian doctors, she began selling = "The Story=20 of Ganesha," a Hindu tale, as well as a CD-ROM about the Taj Mahal that = has also=20 proven popular with Caucasian buyers. Now, she is completing a deal to = sell=20 Jewish folklore and Hispanic legends for an educational publisher. And = she knows=20 that she needs help for that.
"I think I have a good understanding of the Latino market," she says, = "but I=20 have to employ people from the culture if I want to make this = work."
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