1 The Phenomenon of Vietnamese American Businesses: Opportunities and Challenges in HoustonLong S. Le, Ph.D. C.T. Bauer College of Business Vietnamese Studies Program University of Houston

2 Contents What is the phenomenon of Vietnamese American Businesses?PAGE 1. What is the phenomenon of Vietnamese American Businesses? [3] 2. What explains the phenomenon of Vietnamese Businesses in Houston? [9] 3. Are there trends/patterns that make Houston’s Vietnamese Businesses less phenomenal? [17] 4. What are the costs/inhibitors associated with Houston’s Vietnamese Businesses? [23] 5. Does the growing cluster of Vietnamese Businesses in the Bellaire/Beechnut corridor create intra-ethnic competition? [29]

3 The Phenomenon of Vietnamese American BusinessesPercentage Change in Number of all Firms, Percentage Change in Receipts, 1 The Phenomenon of Vietnamese American Businesses Source: 2007 Survey of Business Owners

4 Vietnamese-Owned Businesses Are Creating Jobs at High RatesPercentage Change in Number of Employees in Asian-Owned Businesses, Source: 2007 Survey of Business Owners

5 Source: Bureau of Labor Statistics, Current Population Survey (2010)The Phenomenon of Vietnamese-Owned Businesses Can Lessen the Current Economic Crisis’ Impact? Unemployment rate by race and Asian ethnicity (Annual Averages, ) Source: Bureau of Labor Statistics, Current Population Survey (2010)

6 Unemployment rates by Asian Ethnicities, 2010 Annual AveragesThe Phenomenon of Vietnamese-Owned Businesses Can Lessen the Unemployment Rate Unemployment rates by Asian Ethnicities, 2010 Annual Averages Source: Bureau of Labor Statistics, Current Population Survey (2010)

7 Unemployment for 27 Weeks or Longer by Race, 2009-2010But Reliance on Vietnamese-Owned Firms Will Cause Longer Unemployment When These Firms Lay Off Workers Unemployment for 27 Weeks or Longer by Race, Source: Asians Out of Work Longest Among U.S. Minorities by Yuki Noguchi (2010)

8 The Phenomenon of Vietnamese American Businesses in HoustonThe Number of Asian-Owned Businesses in Harris County, 2007 2 The Phenomenon of Vietnamese American Businesses in Houston Source: 2007 Survey of Business Owners

9 Start-Up Capital From Bank Loans Are Fueling Vietnamese Businesses in Southwest HoustonSource: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

10 Along with Start-Up Capital, Higher Levels of Human Capital Can Impact the Survival, Size, and Profitability of Vietnamese Businesses Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

11 The Attractiveness of Vietnamese Business Community in Southwest HoustonSource: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

12 The Placemaking of Vietnamese Business Community in Southwest HoustonNone Downtown Houston California Outside Houston but in Texas Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

13 Vietnamese Businesses in Southwest Houston Are Becoming Larger and Hiring MoreSource: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

14 Vietnamese Business Community in Southwest Houston Creating a Niche in Professional and Medical Services Source: Google Map of Vietnamese American Businesses in Southwest Houston by Dr. Long Le (2011)

15 Trends that Make Houston’s Vietnamese Businesses Less PhenomenalAll Firms’ Receipts and the Number of All Firms in Harris County, 2007 3 Trends that Make Houston’s Vietnamese Businesses Less Phenomenal Source: 2007 Survey of Business Owners

16 Source: The Houston Asian Area Survey by Dr. Stephen Klineberg (2011)Is Education Correlated with the Returns to Income for the Self-Employed? EDUCATIONAL DIFFERENCES AMONG HOUSTON’S FOUR LARGEST ASIAN COMMUNITIES (1995, 2002 AND 2011 COMBINED) Source: The Houston Asian Area Survey by Dr. Stephen Klineberg (2011)

17 Source: The Houston Asian Area Survey by Dr. Stephen Klineberg (2011)Are higher incomes associated with Asians spending more on meals away from home? REPORTED HOUSEHOLD INCOMES IN FOUR ASIAN COMMUNITIES (1995, 2002, 2011 COMBINED) Source: The Houston Asian Area Survey by Dr. Stephen Klineberg (2011)

18 Projected Sales Growth in Vietnamese Business in Southwest Houston: Bullish or Bearish?Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

19 Self-Reliance Among Vietnamese Businesses in Southwest Houston: Great Asset or Great Liability?None Marketing Product Development Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

20 Liabilities of and Inhibitors to Houston’s Vietnamese BusinessesPresence of Regulatory Agencies Too Much Responsibility Long Hours Limited Resources 4 Too Little Time with Family Liabilities of and Inhibitors to Houston’s Vietnamese Businesses Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

21 What’s Holding Vietnamese Businesses in Southwest Houston From Upgrading and Innovating?Limited Parking Space Unreliable Employees Too Much Competition Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

22 When is Competition Good and When Competition Works Against Vietnamese Businesses?Source: Google Map of Vietnamese American Businesses in Southwest Houston by Dr. Long Le (2011)

23 Source: The Houston Asian Area Survey by Dr. Stephen Klineberg (2011)New Trends Affecting Houston’s Vietnamese Businesses: Attracting Younger Cohorts of Vietnamese Consumers DATES OF IMMIGRATION TO THE UNITED STATES How old were you on 18 to % 22.8% 33.0% 60.0% your last birthday? 30 to to to What was it that led you, Work/education 15.8% 19.6% 19.2% 75.5% or your parents, to leave War/politics/freedom their country of origin and Marriage/family come to America? Other reasons Source: The Houston Asian Area Survey by Dr. Stephen Klineberg (2011)

24 5 Vietnamese Businesses in Houston’s Southwest Side Need Not Lead to Market Saturation and Intra-Ethnic Competition Source: A Case Study of Ethnic Minority Retailers in Atlanta, Georgia by Sevgin Eroglu (2002)

25 Is New Chinatown Outgrowing its Name on Houston’s Bellaire/Beechnut Corridor?No Reply New Chinatown Other Asian Town Little Saigon Source: The Vietnamese American Business Survey in Houston by Dr. Long Le (2008)

26 The Bellaire/Beechnut Corridor: “One Place…Many Cultures.”Source:

27 Reference Aguilar-San Juan, Karin (2005). “Staying Vietnamese: Community and Place in Orange County and Boston.” CITY & COMMUNITY, Vol. 4 Issue 1. Chu, Hung, Lei Zhu, and David Chu (2010). “Immigrant Business Owners: A Case Study of Vietnamese Entrepreneurs in America.” Journal of Business and Entrepreneurship. Eroglu, Sevgin (2002). “Impact of Ethnic Minority Retailers on Urban Revitalization Efforts: The Buford Corridor Case.” Atlanta Journal and Constitution, July 17, E1. Kinder Institute for Urban Research at Rice University. “Overview of Houston Asian Area Survey.” International Management District. “About the District.” Jarmin, Ron and C.J. Krizan (2010). “Past Experience and Future Success, New Evidence on Own Characteristics and Firm Performance.” Working Papers, U.S. Census Bureau, Center for Economic Studies. Le, Long (2011). “The Vietnamese American Business Project.” Lee, Jennifer (1999). “Retail Niche Domination Among African American, Jewish, and Korean Entrepreneurs.” American Behavioral Scientist, Vol.42, No.9, Noguchi, Yuki (2010). “Asians Out of Work Longest Among U.S. Minorities.” NPR, October 10. Robb, Alica and Robert Farilie (2007). “Determinants of Business Success: An Examination of Asian-Owned Businesses in the United States.” Institute for the Study of Labor. Rodriguez, Lori (2007). “Diversity Debate: Chinatown Outgrowing Name.” Houston Chronicle, May 5. U.S. Census Bureau. Survey of Business Owners, U.S. Department of Labor (2010). “The Asian-American Labor Force in the Recovery.”