MONEY

Immigrant entrepreneurs boost 'main streets' in Nashville

Jamie McGee and Lizzy Alfs
jmcgee@tennessean.com; ealfs@tennessean.com

When Nashville voters rejected a 2009 referendum that would have banned government officials from using non-English languages in their work, they sent a message that the city welcomed its immigrant community. Years later, their vote also would prove to support the city's economic growth as immigrants' businesses have proliferated Nashville, creating jobs and transforming neighborhoods.

Ramon Arellano came to Nashville and opened several businesses, including San Jose Fiesta on Wallace Road.

Nashville immigrants have made a significant contribution to the local economy, especially through an outsized presence among local "main street" businesses, according to a new report by the Fiscal Policy Institute, a New York-based nonpartisan research nonprofit. In the larger Nashville metro area, immigrants account for 8 percent of the population and 9 percent of business owners, yet they make up a disproportionate 29 percent of Main Street business owners.

"Immigrants have been an important part of the growth," said David Dyssegaard Kallick, director of Immigration Research Initiative at the Fiscal Policy Institute. "They are employing people in restaurants and retail stores ... and they also play an important role in establishing the character of a neighborhood and helping neighborhood economic growth."

Nashville has seen a rapid increase in its immigrant populations in the past two decades. In 1990, immigrants made up just 2 percent of the population, well below the national average. By 2013, that number had climbed to 12 percent, fueled in part by refugee resettlements and migration from other U.S. cities.

The report, which offers Nashville as a case study, credits Mayor Karl Dean, who established a New Americans Advisory Council and the Mayor's Office of New Americans to address immigrant integration, initiatives that followed the failed referendum. His office also has created MyCity Academy, which helps immigrants navigate and participate in local government. Immigrants from 24 countries have participated.

"The city has become increasingly diverse," Dean said. "It has been a very good thing for the city. The city has certainly benefited because of the strength of our workforce, the interest and excitement that's created by diversity."

The impact is seen greatest on Nolensville Pike, Murfreesboro Pike and in Antioch, with immigrant-owned businesses dotting "main streets" that might otherwise have declined. These areas are home to a colorful mix of retailers, restaurants and service shops.

More diversity is coming to Nolensville Pike this year as a former Kroger transforms into Plaza Mariachi, a 60,000-square-foot marketplace for Nashville's Hispanic community, a project expected to bring additional customers and revenue to the area.

Ramon Arellano, owner of San Jose Fiesta Mexican restaurant at 99 Wallace Road, has opened half a dozen businesses since he immigrated to the U.S. from Mexico in 1976, starting with a Mexican store and cleaning service in Charlotte, N.C. He now operates San Jose Fiesta and is the manager of Arellano Boxing, which develops boxers.

Arellano found business success through hard work, long hours and taking chances. He said his biggest challenge in being an immigrant business owner was learning about government regulations and the U.S. tax system.

"When we came to the United States, we had nothing," he said. "I work, work, work. I own my building and I still mop, sweep and clean bathrooms."

Nashville's nonprofit groups also have played significant roles supporting immigrants as they bring businesses to Nashville's main streets. Conexión Américas, operating out of Caza Azafrán on Nolensville Pike, offers classes for immigrants on bank loans, accounting, taxes, licensing and other financial or business challenges. More recently, the nonprofit opened a commercial kitchen, Mesa Komal, to teach immigrants interested in food-related industries.

Karla's Catering owner Karla Ruiz said Conexión Amèricas' business classes were invaluable as she launched her business four years ago after working in the Belle Meade Plantation kitchen. She operates her company out of Mesa Komal's kitchen. "I think this is one of my best years," she said. "The business is growing. I'm just very amazed."

Recognizing barriers immigrants face, as well as the important role they play in building neighborhoods and business communities, the city has responded with support. In 2009, what became known as the "English only" referendum failed to pass, with 57 percent of voters rejecting it, and resulted in mobilizing business, community, immigrant and religious leaders who were brought together through opposition.

"That was a very critical moment in the history of the city," Dean said. "The city had two paths open to it — one that would be going backwards, one would be closing the doors and becoming insular. The other is moving forward."

Had voters approved the measure, Dean said it is unlikely the city would have garnered the national and international accolades that surround Nashville, that the hospitality sector would be as successful or that the herds of millennials would have moved to Nashville.

"It would have been a terrible thing for us," he said. "That's why we've made it a point to work in our office to make folks feel welcome and work with immigrants as they come to Nashville."

Ramon Arellano, owner of San Jose Fiesta Mexican Restaurant and Arellano Boxing

As a boxer, Ramon Arellano isn't one to back down from a challenge.

After immigrating to the United States from Mexico in 1976, Arellano worked his way up from a janitor at a Hyatt hotel to a manager. He has since operated half a dozen businesses and found success as a trainer and manager for boxers.

Arellano opened San Jose Fiesta Mexican Restaurant on Wallace Road in 2006. The restaurant hosts boxing events that draw big crowds.

"The reason I think I'm successful in business and life is that I take chances no matter what," Arellano said. "I have instincts, and I look around and make sure it's the right place at the right time."

David and Ouida Bradshaw, owners of Jamaicaway restaurants

Ouida Bradshaw's passion for cooking and entertaining fueled the launch of Jamaicaway's catering business in 2001.

Bradshaw and her husband, David, moved to the U.S. from Jamaica. They opened a restaurant at the Nashville Farmers' Market in 2003 and have since opened two additional locations. Jamaicaway got some national attention when it was featured in an episode of Food Network's "Diners, Drive-Ins and Dives."

Fifteen-hour workdays are commonplace for the husband and wife in operating Jamaicaway, and the restaurant has managed to survive in a highly competitive market.

"Restaurants fail at a very high rate and very quickly," David Bradshaw said. "The fact our restaurant has been around for 11 years is really a big statement in and of itself."

Karla Ruiz, owner of Karla's Catering

Karla Ruiz fell in love with the Nashville community when she started working in the kitchen at the Belle Meade Plantation.

Ruiz impressed people by creating Mexican dishes with a Southern flair by incorporating foods from Tennessee producers.

That success led to the launch of her own business, Karla's Catering, four years ago. Ruiz has cooked for celebrities, she has catered large events, and her tamales are sold at the Belcourt Theatre.

Ruiz also envisions big growth for her company, with plans to expand her tamales to more retail stores, launch a line of branded kitchen equipment and cater full-service events for children.

"Launching a business is a challenge every day. Many times, I was about to quit because it's so hard. But nothing made me quit. If 10 doors close in my face, I know one is going to open," Ruiz said.

At a glance

Nashville's immigrant population is 12 percent, a group that represented 32 percent of small-business owner growth between 2000 and 2013.

In the larger Nashville metro area, immigrants account for 8 percent of the population and make up 29 percent of "main street" business owners.

In 1990, immigrants made up just 2 percent of the population, a number that reached 12 percent in 2013.

Source: Immigration Research Initiative at the Fiscal Policy Institute

Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_. Reach Lizzy Alfs at 615-726-5948 and on Twitter @lizzyalfs.