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Chicano/a Entepreneurs in
Rural Communities: by Refugio Rochin
Colonias represent an emerging category of American communities, gaining prominence in recent years. Colonias are typically rural, located in the Southwest, and characteristically "Chicano" or "Mexican" in nature. Conversely, other residents, like Whites or "Anglos," are numeric minorities within colonias. Today there may be easily 1,000 colonias within the Southwest, with as many as a half million residents. Their numbers are increased significantly every year, since 1990. Unlike barrios or ethnic enclaves, which are sub-communities dominated by Whites, colonias are generally governed by Chicano leaders; although that does not necessarily mean that colonias are economically enriched by Chicano entreprenuers. On the contrary, colonias often depend upon federal and state support for basic infrastructure and services related to water, waste disposal, health, police, and fire protection. Likewise, colonia conditions tend to range from lower middle class to Third World communities with few amenities and local jobs. This situation raises a number of interesting questions. Can Latinos be better off in colonias where they constitute the majority? Are Latino residents relatively more entrepreneurial within colonias, taking advantage of language and culture as driving forces for business? What types of businesses are present in colonias? Or, are colonias generally deprived of entreprenuers and the prospects for local development? This study examines the general conditions of colonias and Chicana/o entreprenuers (the self-employed) in rural California. It is also an attempt to ascertain how changing demographics and "structural conditions" affect entrepreneurial activity among residents, including Whites and Chicanos. For this study we used data from the U.S. Censuses of Population and Economic Businesses, covering 1970-1990. We created a special database of over 145 communities with populations of 2,000 to 20,000 in 1980. The year of 1980 served as the marker from which we compared business activity and socio-demographic changes over time. Altogether, we have over 25 bits of information on each community. Census data are also supplemented by California data on factors like taxes, revenues, and school districts. Analysis of Variance (ANOVA) and multiple regression techniques give us answers to several hypothesis, based upon our review of literature and our "structuralist model" of entrepreneurship. Our results both confirm and contradict some of the hypothesis of our study. To begin with, we find striking differences between White and Chicano entreprenuers in rural California, especially with regard to the colonia conditions, the relative employment options for residents, and their levels of education. We also notice that self-employment among Chicana/os is closely correlated with structural conditions. That is, the higher the proportion of Latinos in a community, the more the self-employment of Chicanos in relative terms. Structuralist conditions, however, not only infer more Chicano entrepreneurs, they also relate to fewer economic opportunities for residents, higher unemployment, higher concentrations of workers in agriculture, limited educational attainment among Latinos, and general economic deprivation within colonias. All combined, Chicana/o entrepreneurs are relatively more evident in colonias with high proportions of Latinos, but their customers are generally poor. To a degree, colonia entrepreneurs are self-employed as part of their own means for survival.
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