Center helps poor open up businesses

SALT LAKE CITY — Luis Zamudio came to the Pete Suazo Center just before sunset, pregnant wife by his side, toddler clamped to his leg, four more children trailing behind. A tall, proud Latino with broad shoulders and a commanding presence, tears aren't usually his style. But that day in 2009, they tumbled down his cheeks unchecked, slipping silently into his 5 o'clock shadow.

The owners of Pistol Pete's Mexican Grill, where Zamudio had worked as a chef for years, had just announced plans to shut down. The recession was still in full swing, jobs were tight and Zamudio — though an excellent cook — had less than a fifth grade education. He was desperate. He had just one crazy idea left: purchase the restaurant and go into business for himself.

"I don't want to be a millionaire," he said, nearly choking on the words. "I just want to feed my family."

He turned for help to the Pete Suazo Business Center, a Salt Lake City nonprofit dedicated to helping low-income people start and run businesses. The people there sat him down, dried his tears and now — two years later — Zamudio's "crazy" idea is reality. While business isn't exactly booming, Zamudio has money to put food on the table and, he said, "I have hope for the future."

The Pete Suazo Business Center, which helped more than 200 people find funding and launch businesses last year, is part of a nationwide movement toward market-based solutions to poverty. Over the past 20 years, the number of U.S. organizations dedicated to helping budding business owners — the majority of whom are on the lower end of the income scale — with entrepreneurship education, mentoring and financial backing has grown from just 84 to close to 700. Corporate America has jumped onboard, too. Goldman Sachs, for example, is knee deep in a $500 million initiative to connect 10,000 low-income and minority small business owners with entrepreneurial training, mentoring and capital by 2013. Starbucks announced plans in October to start funneling money into micro loans for entrepreneurs in under served markets. The approach, fueled in part by the development of new technology that makes it easier to start and operate businesses, has been shown to both help people increase their earning power and cut down on reliance on public aid. Success stories range in scope from road-side taco carts to multi-million-dollar trucking companies.

"What we're doing is democratizing entrepreneurship," said Thom Ruhi, director of entrepreneurship at the Kauffman Foundation, the world's largest foundation devoted to entrepreneurship. "At the risk of wrapping this in a red, white and blue flag, we really have to reinstate this American notion of rugged individualism. We have the power to get ourselves out of poverty."