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ESHIP Communities | NewMexico
33
Research
Brief
Rio Grande,
New Mexico
Eliza Salmon, ESHIP Research Manager
March 2020
Research Brief Purpose
This information will be used to inform the local council on the latest ecosystem data available to contextualize and form current and future pathfinder projects.
Census and other publicly available data
Components
+ Methods
- Forward Cities often used the data to calculate indicators
- In some cases Forward Cities incorporated data without adapting it.
- Some economic trend data is shared at the Metropolitan Statistical Area level due to limited data availability.
Entrepreneur Survey
Entrepreneur Survey administered
by Forward Cities, the Kauffman Foundation, & NORC
- Asked aspiring and current small business owners in food industries about their views of the ecosystem
- Conducted early 2020
- 43 aspiring or side business owners and 76 current owners participated (119 total).
- Data held by the third party evaluator, National Opinion Research Center (NORC)
Entrepreneurial Support Organization (ESO) Questionnaire
ESO
- Asked ESOs about their perspectives on the entrepreneurial ecosystem
- Conducted in early 2020
- Of those invited, 54% (n=33) ESOs completed entire questionnaire
- Data held by Forward Cities
Regional Variation &
Demographics
The region varies widely in specific ways, such as population size, unemployment, poverty and demographics.
- Counties range from 17% (Los Alamos) to 71% (Rio Arriba) Hispanic. The region is notably Hispanic relative to the country.
- Distinct variation exists between the counties, in terms of median income, poverty, population size, and beyond.
The region varies widely in specific ways, such as population size, unemployment, poverty and demographics.
Regional Variation
Demographics
Key Points
1. Food industry highlights
2. Disconnection from local resources
3. Startup capital sources
4. Business owner diversity
5. Industries
6. ESO perceptions of collaboration
7. Discrimination at ESOs
8. Food entrepreneurs feelings of community support
Key Points
90 percent of food consumed in the state comes from out of state. Food industries are largely not expanding.
#1
Food Related Industry Establishments, 2012-2017
2017
2012
- 90% of the food consumed in the state is grown outside of the state, indicating a strong potential for food industries and consumers to shift toward local ecosystems.
- Growth in food-related industries in the state is slower relative to the nation (4% vs. 8%, respectively).
Number of Establishments
Food-related industries included: crop production, animal production and aquaculture, fishing hunting and trapping, support activities for agriculture and forestry, food manufacturing, beverage and tobacco manufacturing, food and beverage stores, merchant wholesalers and nondurable goods, food services and drinking places.
#2
A majority of entrepreneur and business owners are disconnected from local resources.
3 in 5 Hispanic entrepreneurs or business owners are not connected to the ecosystem, according to a survey conducted by Forward Cities and NORC.
Aspiring
White Non-Hispanic
Current
Hispanic
White Non-Hispanic N = 69
Hispanic N = 34
Aspiring N = 36
Current N = 76
Connected
Disconnected: Not aware of or not using ESOs, community resources, or mentors
Connected: Using ESO(s), community resources and/or mentors
Disconnected
A majority of entrepreneurs from all backgrounds rely on personal savings. White non-Hispanic men have much greater savings and wealth on average.
#3
Sources of Startup Capital in the Rio Grande Region of New Mexico (2020)
N-8
N-23
Access to funding is the number one concern for food entrepreneurs in the region.
State and national data, as well as the local entrepreneur survey, show that personal savings is the greatest source of startup capital for business owners of all backgrounds.
N-26
N-51
Entrepreneurs of all backgrounds pull from personal savings to start their business. White non-Hispanic men have the most savings and wealth to work with.
Cents to Dollars
The notable income and wealth gaps between Hispanic and non-Hispanic White residents could be a link to why representation in business ownership is lacking. For every dollar a full time White non-Hispanic male employee made, a Hispanic woman working full time made just 55 cents, and a Hispanic man made 65 cents in 2017.
Business owner diversity does not reflect the diversity of the overall population in New Mexico.
#4
Firms with Paid Employees per 1K of Population Subgroup (2016)
Young and established business owners’ backgrounds do not match the general public. Entrepreneurs that are White are twice as common amongst the White population as Hispanic entrepreneurs are amongst the Hispanic population. The disparities grow as businesses get more established:
There were 27 White business owners with paid employees for every 1,000 working-aged White residents of the state, which is lower than for the country (30). That number in the state is 9 for Hispanic business owners. Similar disparities exist between the sexes (M: 26, F: 9 in the state).
Populations 10% or less of the total population were exculded from this chart.
Most prominent industries align with nation
#5
The three largest industries in New Mexico in 2016 by percent of total establishments were:
Retail Trade (14%) (Includes food and beverage stores)
Professional, Scientific, and Technical Services (14%)
Health Care and Social Assistance (12%).
Combined, these industries made up roughly 40% of the total number of establishments in New Mexico.
These are also the top three industries for the state and nation.
Total
Establishments
by Industry
Total Establishments by Industry in the
Rio Grande Region, 2016
Most prominent industries align with nation
Assessment of Collaboration Between ESOs (2020)
Overall, 31% of participants reported that organizations were “very successful” or “completely successful” at working together to support entrepreneurs and small business owners in New Mexico.
Participants from Primary ESOs were more likely to report high levels of successful collaboration than Secondary ESOs
(38% vs. 18%).
#6
Hispanic respondents to the entrepreneur survey indicate discrimination more often than non-Hispanic respondents at entrepreneurial support organizations (ESOs)
Hispanic respondents more often experienced discrimination at ESOs than White non-Hispanic respondents of the entrepreneur survey (59% vs 24%, respectively).
White Non-Hispanic
Hispanic
#7
1 or more selected
None selected
Food entrepreneurs feel supported by their community overall
- Most respondents of the entrepreneur survey feel that their community is either “sometimes” or “always” supportive of food entrepreneurs like themselves.
- Hispanic and White non-Hispanic respondents differed in their level of strong support (30% vs 52% said “always”, respectively).
Aspiring
Hispanic
Current
White Non-Hispanic
#8
Current N = 70
White Non-Hispanic N = 65
Aspiring N = 34
Hispanic N = 30
Sometimes
Rarely or never
Very or always
Key Points Overview
5. Business owner diversity does not reflect the diversity of the overall population in New Mexico.
6. Most prominent industries in the region align with the state and nation.
7. ESO perceptions of collaboration between one another are positive.
8. Hispanic respondents to the entrepreneur survey indicate discrimination more often than non-Hispanic respondents at ESOs
9. Food entrepreneurs feel supported by their community overall.
1. The region varies widely in specific ways, such as population size, unemployment, poverty and Hispanic population.
2. 90 percent of food consumed in the state comes from out of state. Food industries are largely not expanding.
3. A majority of entrepreneur and business owners are disconnected from local resources.
4. A majority of entrepreneurs from all backgrounds rely on personal savings. White non-Hispanic men have much greater savings and wealth on average.