Hispanic leaders: Too few Hispanics among area’s decision-makers

Sept. 27--

Hispanics might be the fastest-growing part of Central Texas' population, but they are under-represented as decision-makers heading up companies and startups, serving on corporate, nonprofit and community boards and representing the public in elected and appointed posts.

That's the consensus from a panel of Central Texas Hispanic business leaders interviewed by the American-Statesman.

But there's good news, too: Hispanic representation is only likely to improve with the bulge of Latino millennials expected to make its way through the higher education pipeline locally and nationally, area Hispanic business leaders say. And education, they say, is key to Hispanics advancing into decision-making positions.

"It's cliche, but education does equal economics. That is fundamental," said Paul Saldaña, principal of Saldaña Public Relations in Austin, a former chairman of the Greater Austin Hispanic Chamber of Commerce.

Diana Zuniga, an Austin real estate developer, echoed Saldaña. "To me, it's all about education. If you have education, you can be CEO of a company. And if you don't, you can't. It's that simple."

Historically, Hispanics in Austin have had the lowest higher educational attainment, with just 16 percent having a bachelor's degree or higher, said Saldaña, a consultant who has done studies on Hispanic quality of life issues. For Anglos, that number is upwards of 55 percent, he said.

But Saldaña is optimistic that that educational gap will narrow in coming years. That's because 70 percent of the Austin metro area's 538,000 Hispanics -- about 35 percent of its total population -- are under age 20, and nearly 55 percent are age 5 or younger, said Saldaña, whose firm has conducted local surveys focused on top issues and priorities for Hispanics, as well as their quality of life.

"Because our overall Hispanic population is much younger, there's still opportunity for Latinos to climb the corporate ladder and assume leadership positions," Saldaña said. "I see no reason why Austin and Central Texas cannot be a leader in the nation in appointing Hispanics to influential positions in corporate America."

Nationally, Hispanic representation on Fortune 500 boards remains at only about 3 percent, according to the Hispanic Association on Corporate Responsibility. Among Fortune 1000 companies, more than 850 had no Hispanics on their boards as of 2012, the association says.

"In an age where diversity and inclusion is so critical to cultural collaboration and advancement, I feel that as a community, we continue to fall a bit short," said Jennifer Solana, a tech executive who is active in local and national Hispanic associations in leadership, advisory and mentoring roles.

Solana, Zuniga and Saldaña were among seven local Hispanic business leaders that the American-Statesman talked to about Hispanic representation in the upper echelons of business and government. The others were Thomas Miranda, founder and CEO of Sparkovation IT, a management and technology advisory firm; Rudy Garza, founder/director of G-51 Capital, a venture capital firm; Elizabeth Gonzales, a financial services professional; and Juan Rodriguez, CEO of Austin technology startup Flash Valet.

Here are some of their comments:

Statesman: The Austin area's workforce is increasingly Hispanic, but is that translating into more Hispanics serving as CEOs, board members and in other decision-making posts? If you had to rate Central Texas in this regard, what grade would you give it?

Garza: "Generally my impression is that the number of Hispanics in CEO roles and in board rooms is growing but not keeping pace proportionately to Hispanic growth rates. I believe the Austin spirit of doing business is embracing people who get things done and as long as we can educate, train and inspire the new workers entering the workforce; give them access to education, financing and opportunity there is no reason we can't be one of the national leaders in producing top level Hispanic business men and women."

Zuniga: "I grade it a B because I don't necessarily feel that there's a bias against Hispanics in positions of leadership in Austin. I think Austin is a very progressive community. Maybe the reason there aren't more in leadership positions is that it starts in the home and school, instilling the idea that you can be a leader, you can be president of whatever. I think how we have to tackle the problem is at the educational level and at home, providing a stable environment where children can develop a positive self-image."

Saldaña: I would say a "C" grade. The reason being, it's a two-way responsibility. It's the responsibility of companies in Austin, they have some work to do in making sure they have a staff and executive team that reflect the diversity of the community. That's a local community value, and one I think all people embrace. It's also incumbent on the Latino community that we're preparing our own folks to be successful. That's where we have some work to do. Because our overall Hispanic population is much younger, I only see it improving."

Miranda: "There are a few more CEOs, board members and executives around town, but (their numbers are) still fractional compared to the growing proportion of the Hispanic workforce. The growth in executive functions has been flat to down relative to the Hispanic workforce growth. Regarding rating Central Texas on this, it would get a C- or a D as nonprofits like the Hispanic Chamber, other professional Hispanic organizations and organizations... are investing in Hispanic leadership, but from a region more support, funding and an integrated inclusion approach is needed way at the front end of business recruitment to get to a much better representation from the US and international markets. It's very much like the Austin transportation conundrum; if you don't plan for it, a point of diminishing returns will be apparent."

Solana: "When considering not only our current state but also the expected growth rate for Central Texas, particularly Austin, it's clear that high- tech and trade- level work will be available for the growing Hispanic population. We need to not only recognize the Hispanic community members and how important they have already been to Austin's success, but we have to better prepare them for the types of roles and opportunities that are going to be made available by way of our cities continued growth and expansion. In order to do that we have to ensure that we have cultural representation in any largely influential decision- making positions."

Gonzales: As I see many more young professionals involved in the community, they are taking care of themselves rather than relying on corporate employers to invite them into the corporate offices. I sense Latinos are also taking the entrepreneurial route to achieve financial success. I believe that we are lacking greatly and often overlooked for board positions and decision-making tables."

Rodriguez: "I would give our area a "C" grade. I think we're lacking a lot of role models. This problem is not unique to Central Texas. But we do have a large Latino population compared to many other business centers and I would expect a greater representation of Hispanics in leadership positions."

>>Why is it crucialthat the Austin region have a more diverse makeup among its top decision-makers?

Miranda: "The Hispanic market is like no other. It will be the driving force of your products and services in the very near future. Conversely, the Hispanic community has some of the most challenging needs from affordability, health care and education, to name a few. Nonprofits, government entities and volunteers are supporting this segment with a lot of heart and soul but stronger focus, development, funding and an integrated regional-wide approach is needed in order to create parity across this region. Without representation from Hispanic leaders in top positions and roles across sectors, focus and attention on Hispanic needs and development will continue to lack."

Rodriguez: "Role models play a crucial role in inspiring leadership in others. It is imperative that Latino (and other minority) youths see someone who they can relate to in positions which are not traditionally held by minority individuals, otherwise they will perceive greater barriers to their own success. Diversity is always valuable to individual businesses. It brings creative solutions and greater innovation to any problem. Specifically in Central Texas businesses and political bodies must address the needs of our large and growing Hispanic population and they will have a difficult time achieving this without direct input from members of our community.

Garza: "All the demographics that I have seen show a strong Hispanic make up of future Austin and Texas populations. If businesses want to tap into this current and future workforce, consumer group and community they will embrace Hispanics into more of the top business roles across our local and statewide economy."

Gonzales: "Corporate America, it seems, has realized that their workforce must look like the markets that they serve, and so you see a much more international flavor to the executive suites these days. However, I am not sure that I see us well represented in Austin."

>>Is Austin a good place for Hispanic tech entrepreneurs? Is there anything that would bolster Hispanic entrepreneurship here?

Miranda: "Generally Austin is a great place for Hispanic tech entrepreneurs however, resources are fragmented and boutique or VC/high growth groups are plenty. There seems to be a huge focus on high growth entrepreneur and competitions but that fundamentally encourage those type of businesses. I have been involved in technology since the age 12 and am fortunate to be able to hold my own in any environment, though am afraid that there are not too many resources in the region that can effectively foster Hispanic entrepreneurship to the scale and magnitude that the general market is operating at. Hispanic entrepreneurs face challenges like access to capital, business planning, regulatory and tax burdens, etc. There are also cultural issues in doing business in certain markets as well as mentor/role model shortages. The Greater Austin Hispanic Chamber of Commerce is currently searching for a permanent home and meeting with various business, public and community organizations to bring to life a co-working space inside of a permanent home which will contain resources, incubation, mentoring and acceleration components where all of our critical partners, members and community can come together for best in class services to help all Hispanic Entrepreneurs achieve great success. We could use great attention and support for this undertaking as it will be the premier center of excellence and landing pad for all regional entrepreneurs with a focus on Hispanic business, both domestic and international."

Rodriguez: I think Austin is a great place for tech entrepreneurs, but not necessarily for Hispanics. There is an abundance of tech resources to tap into here in town. But in my personal experience, when I went to speak to investors to pitch our company I was the only Hispanic in most cases (9 out of 10 times). I don't think that Hispanics are looked upon as equals, all other things being equal and I don't think it's a myth that investors are more comfortable investing in Caucasian males. I think investors worry that accents and cultural differences may cause communication and leadership problems within companies.

If we had a fund that was dedicated solely to funding Hispanic entrepreneurs, that would be fantastic. If that exists I've never heard of it. That would be tremendous to boost Hispanic entrepreneurship in this area."

------

Panel bios

Thomas Miranda: Founder and CEO of Sparkovation IT, a management and technology advisory firm. For 15 years he served in a wide range of engineering, technical & business leadership roles at HP, Dell and Cisco. He founded and served as the first chief technology officer for Cisco's Latin American employee organization. He is 2014 chairman of the Greater Austin Hispanic Chamber of Commerce.

Diana Zuniga: Owner/president of Investors Alliance Inc., an Austin-based real estate services firm. A developer of the Spring condominium tower in downtown Austin, Zuniga received the first-ever award as the top commercial woman in real estate by CREW Austin (Commercial Real Estate Women). She is the only female member of the advisory board for IBC Bank Austin.

Elizabeth Gonzales: A small business owner and financial services professional who has represented New York Life Insurance and NYLife Securities for 28 years. She is past chair of the Greater Austin Hispanic Chamber of Commerce and is a board member for the Austin Hispanic Chamber of Commerce Foundation and Southwest Key Programs.

Jennifer Solana: A board advisor for National Society of Hispanic MBAs and part of the Leadership Austin class of 2015. Solana, who works in global training for a tech firm, is also on the board of the Hispanic Scholarship Consortium and is a member of the Young Hispanic Professional Association of Austin.

Juan Rodriguez: CEO of Flash Valet, he previously held executive positions at MPower Labs and Rev Worldwide, where he led efforts to launch financial and mobile payments services to the world's unbanked populations in over 10 countries. In 2005 Rodriguez co-founded Klevernet (since acquired by MPower Ventures) an online insurance portal.

Rudy Garza: Founder and director of venture capital firm G-51 Capital. He has been a board member on more than 20 technology startups. He is a past president and board chairman for the University of Texas' Texas Exes alumni organization.

Paul Saldaña:Pprincipal, Saldaña Public Relations. Saldaña is a consultant, advisor and contributor on Hispanic quality of life issues including education, voting, economics, health care, redevelopment, gentrification, and affordable housing to governmental entities, clients and the media.

Growing Austin

Growing Austin is an occasional series examining the impact of growth. This fall, the series is focusing on the area's growing Hispanic population. In coming weeks, stories will explore changes ahead for politics, education, health, culture and other aspects of Central Texas life affected by this demographic shift.

___

(c)2014 Austin American-Statesman, Texas

Visit Austin American-Statesman, Texas at www.statesman.com

Distributed by MCT Information Services