Asian Businesses Growing Fast in Massachusetts

By Adam Smith, Sampan

Jun 15, 2007 - When Nga Nguyen fled Vietnam's communist government in 1979, she had no idea where she would go or what she would do to support herself.

Only a teenager at the time, Nguyen had just started high school and spoke no English before making her way to the United States via the Philippines.

"I'm lucky," she said of her opportunity to start a new life in the U.S.

But several years after settling in Massachusetts with her family, she realized that without a college education or a strong command of English, her choice of work would be limited and low-paying.

So she decided to work for herself.

At first, she and her husband, Toan Tran, opened a restaurant in Chinatown.

When that proved unsuccessful, the two tried their hand at a clothing boutique, which also turned out to be challenging. The third time was a charm: They founded Anna Travel, a Chinatown-based travel agency specializing in trips to Vietnam, China, and other parts of Asia.

Nguyen is one of the thousands of Asian American business owners in Massachusetts who, in 2002 alone, generated more than $5 billion in sales and receipts and provided 37,000 jobs, according to a newly-released report, the Rise of Asian-Owned Businesses in Massachusetts.

The report, based largely on the U.S. Census's survey of business owners in 2002, was commissioned by the Immigrant Learning Center and conducted by the Institute for Asian American Studies at the University of Massachusetts Boston.

More than 18,000 Asian-owned businesses operated in the state in 2002, a 44% increase from 1997. During the same time period, the number of all Massachusetts firms increased by only 5%.

From 1992 to 2002, the number of Asian-owned businesses grew by an even larger number: 158%.

"These businesses, if they continue to grow, are a significant force throughout the state," said Paul Watanabe of the Institute for Asian American Studies, who co-authored the report with Michael Liu.

The fast growth of Asian-owned businesses even outpaced the growth of the state's Asian American population, which grew by 68% from 1990 to 2000, said Watanabe. According to 2005 Census Bureau estimates, nearly 300,000 Asian Americans now live in Massachusetts, and more than 70% are immigrants.

Asians in Massachusetts run all kinds of businesses, including real estate firms, restaurants, herbal shops, dentist offices, construction companies and more. But the most common Asian-owned businesses, by industry, include professional, scientific and technical services; retail trade; accommodations and food services; and health care and social assistance.

Chinese Americans, who make up over a third of the state's Asian Americans, own the largest share of the state's Asian American businesses. Indian Americans and Vietnamese Americans follow close behind.

In terms of sales and receipts, however, Indian Americans are on top at $2 billion in 2002, followed by $1.8 billion from Chinese American companies, and $321 million for Vietnamese American companies.

The growth of Asian American businesses in Massachusetts reflects a nationwide trend. Asian American-owned firms in the U.S. increased by 86% from 1992 to 2002.

As of 2002, for every 10 Asian Americans, there was one Asian-owned business, according to the report. The total sales and receipts generated by the nation's Asian businesses for that year surpassed $326 billion.

Of all U.S. states, Massachusetts comes in 13th for its number of Asian-owned businesses.

Marcia Drew Hohn, director of public education at the Immigrant Learning Center, suggested that entrepreneurship is attractive for many immigrants.

"So many immigrants are entrepreneurs -- sometimes because they have no choice. They feel they have a better chance of economic success as an entrepreneur than working for somebody else. But it's also the spirit of risk-taking. It takes a lot of courage to get up and leave your country and come here," she said.

This makes sense to Nguyen. She said she believes that for many Asian immigrants like herself, it can be more profitable to start a business than to work at a job that might pay little for people with limited English ability or little education in U.S. schools or colleges.

"That's why we take the risk," she said, "because when we came here, we didn't speak English. All you can do is work at a factory."