For immigrant businesses in Pittsburgh, the sky’s the limit

Concerned with the kidnappings of children and the ransom demands threatening murder, Johnny Diaz and Grecia Vasquez left the Dominican Republic and moved to the Brookline neighborhood of Pittsburgh in 2018.

Two years later during the pandemic, they launched Snackever, an online business of healthy packaged treats. “We try to make the American dream,” Diaz says.

Entrepreneurs like the Diaz family are not unusual in the Pittsburgh region and U.S., according to recent studies.

One in five

“About one in five entrepreneurs in the U.S. is an immigrant, employing millions of native-born Americans,” reported the New York Times in August 2024. “They keep us fed and fill critical labor gaps as millions of baby boomers retire. These workers are the force behind much of our gig economy, driving our ride shares and delivering our food.”

Yet immigrants comprise only 5.8% of our region’s population, notes Christopher Briem, a regional economist at the University of Pittsburgh. This region, which suffers more of a population loss than most, ranks last for the rate of immigration among the 40 biggest metro areas in the country, he says.

“Were it not for immigrants coming into the region over the past 10 years, we would have lost population,” says Matt Barron, sustainability program director for The Heinz Endowments.

Between 2014 and 2019, the city’s population declined by 1.3%, according to the American Immigration Council. But without the 18.9% increase in immigrants, the city’s population would have dropped by 2.7%.

If the city’s population falls below 300,000, Barron warns, it could threaten its ability to apply for certain federal grants. The Heinz Endowments has spent $9 million in the last six years to support programs helping immigrants and refugees.

Briem attributes the population decline to the city’s lack of jobs and entrepreneurship. “We rank 40 out of 40 in entrepreneurial activity,” Briem says. “It’s part and parcel (why) we lost so many jobs.”

Generally, he explains, two-thirds of a region’s economy provides goods and services. A city with a declining population offers little incentive to open a business such as a hair salon or a restaurant.

Immigrants are prime candidates for starting a business, says Brent G. Rondon, senior international trade consultant for the Small Business Development Center at Pitt, because they are more inclined to take risks.

They have to learn a new language and culture and many have survived violence and instability in their native countries. Some have endured a perilous journey to get here.

Rondon further notes that immigrants, who typically lack credit when they arrive, will work multiple jobs, including weekends and most holidays, and save money to start their own business. Some even pay cash for a building to house it. “They all see the whole country as an opportunity,” he says.

A family enterprise

Take Grecia Diaz, who sought help with her idea for a snack business from the Pittsburgh Hispanic Development Corporation, a nonprofit group that helps entrepreneurs overcome language barriers, and acquire permits and obtain loans, among other services.

Guillermo Velazquez, executive director of the incubator, says it has nurtured 160 businesses, 90% of which are still operating. Clients have created 130 full-time and 91 part-time jobs, he says, and most of the firms generate $50,000 to $100,000 in revenue during their first year and $1 million by their fifth year.

“First of all,” Velazquez says, “they contribute to the economic stability of the region. They pay taxes and create jobs. And they also satisfy a need in the region.”

During the Covid-19 lockdown, Grecia Diaz noticed a need for healthy snacks for vegans, diabetics, gluten-free consumers and others with dietary needs. The family even launched their own brand, consciouSnack.

“The food industry has many players,” Johnny Diaz says, so “getting name recognition is difficult.” The family targets customers needing treats for group gatherings such as schools and offices. The company sells about $200,000 in snacks a year and the plan is to reach $1 million in annual sales in two years, says Grecia Diaz.

As with many immigrant enterprises, the entire family pitches in. Athena does the marketing, including the snackever.com website. Her contribution to the business, along with her academic success as a senior at Seton-LaSalle High School, justifies their move from their families and native countries, says Grecia.

Athena, who sings and plays the piano, wants to be a performer and songwriter. “I know 100% she will do it because we’re here,” her mother says.

The American dream

Growing up in China, JJ Xu was inspired by Hollywood movies such as “Mission Impossible” she watched in a theater run by her grandfather.

“The gist of the movies and what the directors presented is the still the same,” she says. “The good people always win eventually. Work hard and hold onto your dream.”

Xu, now a Crafton resident, leveraged this nothing-is-impossible attitude to found TalkMeUp, an AI-based communication firm in Oakland. Her interest in communication can be traced to her mother, an English teacher, who encouraged her to compete in public speaking.

“The biggest thing I learned from my folks was not to be a ‘good’ child,” she says. “My mom taught me to speak up, which is the opposite of what most Chinese parents would do.”

After graduating from Peking University, Xu tried to start a business in China, but could not get it off the ground for lack of mentors and capital. In the States, “the sky’s the limit.”

In 2016, Xu enrolled in the MBA program in entrepreneurship at Carnegie Mellon University. She thought of TalkMeUp after she asked her classmates to rank the most valuable resource in an MBA program. Communication coaching topped the list. That was her lightbulb moment, seeing a huge opportunity in the training market.

Her first hurdle was getting a green card, since investors hesitated to give money to an immigrant on a student visa. With her visa extended, she launched TalkMeUp in Oakland in 2018, and it went fully commercial last fall.

Her company evaluates online presentations and suggests improvements. The rubric judges speakers in such areas as facial expressions, eye contact, gestures, enthusiasm, persuasiveness and empathy. The advantage, Xu says, is that it removes the biases of human coaches.

Success in Pittsburgh

So far, TalkMeUp has a patent for its software and 20 client firms representing 4,000 employees. Of those businesses, 90% renewed their contracts.

Xu, who acts as CEO of the firm, credits Pittsburgh for some of her success.

“Every time I fly in at the Pittsburgh airport, the moment I touch down, you can feel how warm and welcoming Pittsburgh is with everyone from the interactions and small talk I have with local people,” she says. “In a city that’s innovative and forward-looking, we require that kind of culture.”

Bill Zlatos is a freelance journalist retired from Trib Total Media. He can be reached at billzlatos@gmail.com. This story, trimmed for publication, is part of “The New Americans” series, a project of Pittsburgh Tomorrow.