Editor’s note: This is the fourth post in our theme for November, The Latinx City.
By Stephanie Rivera-Kumar
Philadelphia, one of the oldest cities in the United States, has a vibrant history shaped by immigrant contributions that continue to affect its neighborhoods and economy. In recent years, Latinx immigrants from countries such as the Dominican Republic, El Salvador, Guatemala, Honduras, and Mexico have made their mark on the city, infusing it with a robust entrepreneurial spirit. This wave of Latinx immigrants has established business ownership as a fundamental part of Philadelphia’s economic and cultural landscape, particularly in areas like North Philadelphia and certain parts of South Philadelphia, where Latinx-owned businesses deliver vital goods, services, and cultural landmarks.
Over the last fifty years, migration patterns have transformed Philadelphia into a modern-day immigrant hub, reversing its mid-century population decline.[1] Between 2000 and 2016, Philadelphia’s immigrant population increased by almost 95,000, mainly due to newcomers from Latin America and the Caribbean. Latinx migration reflects a broader trend that considerably increased Latinx populations across urban areas nationwide, especially after the 1965 Hart-Cellar Act eased immigration restrictions from the Americas. [2] [3] [4] [5]
Within Philadelphia, Latinx entrepreneurs are particularly notable for their role in rejuvenating commercial corridors. South Philadelphia, for instance, has become home to numerous Latinx businesses catering to local communities while drawing patrons from across the city. These businesses contribute to Philadelphia’s economy and cultural diversity, allowing Latinx entrepreneurs to connect with their heritage and foster community cohesion. Organizations like the Greater Philadelphia Hispanic Chamber of Commerce have recognized and supported this impact, offering resources to help Latinx entrepreneurs thrive amid unique challenges. [6] [7]
Economic and Cultural Contributions of Latinx Entrepreneurs in Philadelphia
In South Philadelphia and not far from the Italian Market, known as the “nation’s oldest outdoor market,” a commercial district made up of outdoor and storefront vendors and filled with various ethnic businesses, Ana, a business owner from Chiapas, Mexico, has transformed her boutique into a thriving community hub.[8] Ana arrived in Philadelphia in the early 2000s. Starting with a store that stocked familiar products, such as colorful hand-painted artisan clay pitchers and woolen garments or “ponchos” from her home state of Chiapas, Mexico, her business has grown into a meeting place where community members connect, share resources, and find items that maintain their cultural ties to the Mexican states of Puebla, Oaxaca, and Chiapas. Like many Latinx-owned businesses, her store bridges the cultural and economic needs of her community while drawing in other Philadelphians curious to experience Latinx culture.
This pattern reflects a larger trend throughout Philadelphia, where Latinx entrepreneurs have made considerable contributions to the local economy and the preservation of cultural heritage. Since the late twentieth century, Philadelphia has been a reemerging immigrant destination, reversing decades of population decline and creating pockets of vibrant, immigrant-centered neighborhoods. Philadelphia’s proximity to New York City, its existing Latinx networks, and its need for labor to support the local economy have made the city attractive to immigrants in the late twentieth century and early twenty-first century.[9] [10] Latinx immigrants, especially those from the Dominican Republic and Mexico, have been central to this revival, repurposing storefronts and opening new businesses catering to ethnic enclaves and the larger public. [11]
Neighborhoods like North Philadelphia and South Philadelphia now house a mix of Latinx-owned establishments – from family-owned bakeries or “panaderías” and restaurants to auto repair shops and grocery stores. Each business brings a slice of Latin America to Philadelphia’s streets with flavors, music, and aesthetics that transform the urban landscape.
The map of these Latinx establishments illustrates their impact across Philadelphia, showing clusters that reflect community ties and the reach of Latinx culture. This clustering of Latinx establishments in specific areas also strengthens local economies, creating jobs and drawing commerce into historically underserved neighborhoods. According to a study from the Economy League of Greater Philadelphia, immigrant-owned businesses in the city employ immigrants and native-born residents, and Latinx entrepreneurs, in particular, contribute substantially to revitalizing commercial corridors in the city. [12]
The influx of Latinx immigrants, particularly from Mexico and Central America, aligns with broader patterns of Latinx migration in the United States, a trend that began accelerating after immigration policy changes in the Immigration and Nationality Act of 1965 allowed greater numbers of Latin American immigrants to settle in U.S. cities. Philadelphia saw a notable rise in its foreign-born population in the late twentieth century driven by geopolitical and economic factors in immigrants’ host countries, with Latinx immigrants finding economic opportunities in the service, retail, and hospitality sectors.[13] [14] By 2016, immigrants accounted for nearly 20 percent of Philadelphia’s labor force, with many choosing self-employment to overcome barriers to traditional employment. Immigrants now make up nearly a third of all entrepreneurs in the city, contributing to a vibrant mosaic of businesses, from restaurants and grocery stores to construction firms and community-oriented services.[15]
In addition to economic contributions, Latinx businesses play a vital cultural role. They serve as spaces where language, customs, and traditions are preserved and celebrated. For instance, at Cibao Food Market store, customers can find not only Dominican staples like plantains and ingredients needed to make habichuelas guisadas, a Caribbean rice and beans stew, but also local favorites, such as hoagies, plus grocery items. Similar establishments across Philadelphia provide cultural continuity for Latinx communities, helping newer immigrants acculturate while retaining a link to their roots. For many Latinx Philadelphians, these businesses are more than commercial ventures; they are extensions of cultural identity, reinforcing a sense of belonging in an unfamiliar landscape.[16]
As Latinx entrepreneurs like Ana continue to expand their reach, they embody the resilience and adaptability of Philadelphia’s Latinx community. Their businesses not only support economic mobility but also foster the diversity that is central to Philadelphia’s identity. This cultural and economic interdependence highlights the powerful role of Latinx entrepreneurship in shaping the city’s present and future.
Challenges and Community Networks for Latinx Entrepreneurs in Philadelphia
Latinx entrepreneurs in Philadelphia contribute significantly to the local economy, yet they face persistent challenges that complicate their journey to business success. Key obstacles include limited access to traditional capital and a lack of resources tailored to the specific needs of immigrant business owners. These barriers are particularly challenging for Latinx entrepreneurs, who often navigate these issues while adapting to a new cultural and economic environment.
Access to Capital
One of the most significant hurdles for Latinx entrepreneurs is accessing capital. According to the Federal Reserve’s 2024 Small Business Credit Survey, minority-owned businesses, including Latinx-owned firms, are more likely to be denied credit or receive only partial financing compared to their non-minority counterparts.[17] Due to limited access to traditional lending options, many Latinx entrepreneurs rely on informal financing from family or community members. This reliance is compounded by a lack of credit history or formal business records, making it difficult to secure loans through conventional channels.
Philadelphia’s banking and financing landscape mirrors these national trends. Latinx business owners in the city often turn to informal lending circles or “tandas” or “cundinas,” a common practice in Latinx communities where members contribute to a shared fund.[18] However, these informal methods may limit the available capital for business growth, restricting their expansion opportunities. The challenges in accessing sufficient capital prevent many entrepreneurs from investing in their businesses and reaching their full potential.
In response to these challenges, community organizations like the Greater Philadelphia Hispanic Chamber of Commerce (GPHCC) are essential in supporting Latinx entrepreneurs. Founded in 1990 to empower Hispanic business owners, the GPHCC provides various resources, including networking events, business development workshops, and access to local business advisors, and strives to support existing and emerging Latinx populations as a result of recent shifts in immigration.[19] Through initiatives like the Accelerate Business program, the Chamber offers targeted support to help Latinx entrepreneurs build essential business planning, financial management, and marketing skills. This support has been critical for many Latinx entrepreneurs who lack access to traditional business education and mentorship.
The GPHCC also advocates for improved access to capital for underrepresented entrepreneurs. They have partnered with local financial institutions to offer low-interest microloans, bridging the gap for business owners who might otherwise rely solely on informal lending networks. These initiatives enable Latinx entrepreneurs to access the capital they need for growth, allowing their businesses to contribute more effectively to the local economy and community cohesion.
The impact of organizations like the GPHCC extends beyond economic support; they provide Latinx entrepreneurs with a sense of community and a network of allies who understand their unique challenges. By fostering these connections, the Chamber supports individual businesses and strengthens the broader Latinx community in Philadelphia, creating a more resilient and culturally rich urban landscape.
The Future of Latinx Entrepreneurship in Philadelphia
As we consider the impact of Latinx entrepreneurs on Philadelphia’s economic and cultural landscape, it is clear that their businesses are far more than just commercial ventures—they are essential components of the city’s resilience, diversity, and identity. Latinx business owners contribute through economic development and fostering vibrant communities that celebrate cultural heritage and create opportunities for social cohesion. Yet, their challenges, such as limited access to capital, emphasize the need for policies that genuinely support and empower immigrant entrepreneurs.
Reflecting on this dynamic role, a few key questions arise:
- How can Philadelphia further support Latinx entrepreneurs in building sustainable businesses and communities?
- How can the city ensure that Latinx-owned businesses continue to thrive as essential cultural and economic hubs?
- What role do we as residents or policymakers play in fostering an inclusive economic landscape where Latinx businesses are recognized as vital contributors to Philadelphia’s future?
These questions invite us to think critically about the resources, policies, and community initiatives necessary to support the next generation of Latinx entrepreneurs and ensure that Philadelphia remains a welcoming and supportive home for immigrant communities.
Stephanie Rivera-Kumar is a City and Regional Planning doctoral student and Fontaine Fellow at the University of Pennsylvania Weitzman School of Design. Stephanie’s research explores Latinx immigrant populations’ economic, cultural, political, and social impacts on U.S. cities, specifically Philadelphia. Stephanie’s dedication to social justice, particularly in supporting low-income and immigrant communities, has earned her numerous accolades, including being a Penn School of Social Policy & Practice Hall of Fame Inductee in 2024, a Penn-Birmingham Transatlantic Fellow, a finalist in the 2022 Greater Philadelphia Social Innovations Awards, an AL DÍA 40 under Forty Honoree in 2021, and recipient of the University of Pennsylvania’s Excellence in Social Impact Award in 2019.
Featured image (at top): Colorful graffiti in front of an empty lot along 9th Street between Washington Avenue and Ellsworth Street, in a portion of the Italian Market with numerous Mexican establishments, Philadelphia, Pennsylvania, Stephanie Rivera-Kumar, August 13, 2023
[1] “Philadelphia’s Evolving Immigrant Population Has Helped the City Grow.” 2024. June 13, 2024. https://pew.org/3KGkR8c.
[2] “Philadelphia’s Immigrants.” 2018. June 7, 2018. https://pew.org/2swfWPw.
[3] Batalova, Jeanne Batalova Brandon Marrow and Jeanne. 2024. “Immigrants from the Dominican Republic in the United States.” Migrationpolicy.Org. August 12, 2024. https://www.migrationpolicy.org/article/dominican-immigrants-united-states-2024.
[4] Batalova, Jeanne Batalova Jeanne. 2024. “Mexican Immigrants in the United States.” Migrationpolicy.Org. October 7, 2024. https://www.migrationpolicy.org/article/mexican-immigrants-united-states.
[5] Batalova, Jeanne Batalova Nicole Ward and Jeanne. 2023. “Central American Immigrants in the United States.” Migrationpolicy.Org. May 9, 2023. https://www.migrationpolicy.org/article/central-american-immigrants-united-states-2021.
[6] Latino Philadelphia : Our Journeys, Our Communities = Filadelfia Latina : Nuestros Caminos, Nuestras Comunidades : A Community Profile /. 2004. Philadelphia, Pa.: The Institute.
[7] Philadelphia Hispanic Chamber of Commerce | Philadelphia, PA 19124. Accessed October 14, 2024. https://www.philahispanicchamber.org/.
[8] “History – South 9th Street Italian Market.” n.d. Accessed November 6, 2024. https://italianmarketphilly.org/history-2/.
[9] Takenaka, Ayumi, and Mary Johnson Osirim. 2010. Global Philadelphia: Immigrant Communities Old and New. Temple University Press.
[10] Singer, Audrey, Susan Wiley Hardwick, and Caroline Brettell, eds. 2008. Twenty-First-Century Gateways: Immigrant Incorporation in Suburban America. James A. Johnson Metro Series. Washington, D.C: Brookings Institution Press.
[11] “Philadelphia’s Immigrants.” 2018. June 7, 2018. https://pew.org/2swfWPw.
[12] “How Immigrant Entrepreneurs Are Driving Growth in Greater Philadelphia | Economy League of Greater Philadelphia.” 2015. February 18, 2015. https://www.economyleague.org/news/how-immigrant-entrepreneurs-are-driving-growth-greater-philadelphia.
[13] Cárdenas, Maritza E.. Constituting Central American–Americans: Transnational Identities and the Politics of Dislocation. United States: Rutgers University Press, 2018.
[14] “Philadelphia’s Immigrants.” 2018. June 7, 2018. https://pew.org/2swfWPw.
[15] “Who Are Philadelphia’s Immigrant Entrepreneurs?” 2024. September 17, 2024. https://pew.org/3XvhkQ6.
[16] Hernandez, Zeke. 2024. The Truth About Immigration: Why Successful Societies Welcome Newcomers. St. Martin’s Publishing Group.
[17] 2024 Report on Employer Firms: Findings from the 2023 Small Business Credit Survey.” 2024. Small Business Credit Survey. Federal Reserve Banks. https://doi.org/10.55350/sbcs-20240307
[18] Vélez-Ibáñez, Carlos G. An impossible living in a transborder world: culture, confianza, and economy of Mexican-origin populations. University of Arizona Press, 2010.
[19] Philadelphia Hispanic Chamber of Commerce | Philadelphia, PA 19124. Accessed October 14, 2024. https://www.philahispanicchamber.org/.