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Top Entrepreneur Talks About Why Immigrants are More Likely to be Attracted to the Business World

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2022 reports released by the American Immigration Council show that nearly 44% of Fortune 500 companies were founded by immigrants or their children. The actual percentage of businesses founded by foreign-born individuals who moved to the US is 20.4%, an exceptionally impressive statistic because immigrants make up only 13.4% of the American population. These businesses cumulatively generate ~7 trillion US dollars for the American economy annually, a figure worth more than the GDP of most other countries in the world.

Several studies in the past decades confirm that immigrants from foreign countries are more likely to delve into entrepreneurship and become business owners than native citizens.

With all the statistics, reports, and figures backing these findings, the motivations behind the immigrants entrepreneurial struggle and determination remain unclear to many economic scholars. Despite the social, economic, and systemic inequalities and injustices that are undeniably meted out to immigrants in many foreign countries, these driven individuals still manage to break the limits, adapting and excelling in all forms of society. This phenomenon is not limited only to the United States. According to the Global Entrepreneurship Monitor, the vast majority of developed countries have a higher growth rate in immigrants than native-born citizens. 

The United States is a country built on the basis of immigrants, a country that has come forward with the efforts of many people who come with the American dream, seeking a better quality of life, says Katherine Grullon Cuervo, Colombian-American entrepreneur and business lead at Distrivision, an international wholesale distributorship service supplying Shapewear, Lingerie, Activewear, Body & Garment care to business owners.

Most immigrants from third-world or war-torn countries leave their home nations and relocate to advanced countries in search of stability, greener pastures, and fresh opportunities to put roots down and genuinely thrive, as against merely surviving. The odds arent always stacked in their favor and the journey is never easy from the get-go, but perseverance is a quality thats never lacking within the immigrant community. Tenacity and the ability to scour market opportunities with fresh eyes allow them to create unique micro-niches with massive potential in existing and new markets.

Never settling for the minimum

Distrivision is a franchise that was founded by Maria Ruth Cuervo, Katherine Grullon Cuervos mother, a versatile serial entrepreneur who came to America from Colombia. Katherine highlights the immigrants perspective of entrepreneurial success from Maria Ruths inspiring journey.

As a 13-year-old teenager growing up in Manizales, Colombia, Maria Ruth found her passion in enterprise management while working with her own mother and learning the ropes of the family business. Years later, she decided with her husband to sell everything they owned and migrate to the United States with their children, determined to give their girls the best quality of life within their means. Upon her arrival in the US, Maria Ruth wasted no time securing a job as a factory worker, and even then, her passions continued to soar.

Starting from the bottom always reminds us where we want to go, Katherine says. Knowing where we come from and what we had been through, Maria Ruth, with her hard work was able to get promoted to a new position, although the difference in pay wasnt a lot. Her entrepreneurial spirit flared, and all she wanted at the time was to find a way to generate better income. This is something thats ingrained into the mind of the common immigrant never settle for the bare minimum. We come from places and countries where work is sweated and a lot must be sacrificed for a living to be made. Luckily, other members of our Hispanic community with entrepreneurial passions were able to encourage Maria Ruth to start her own business.

Infinitely grateful to her community for the motivation and unconditional support, Maria Ruth founded Shapewear Central, a boutique importing figure-shaping garments from Colombia. In due time, Shapewear Central set itself apart as a franchise bringing in high-quality useful products at fair and honest prices, and eventually, aspiring entrepreneurs sought out Maria Ruth for assistance to delve into the business.

With her daughter Katherine working actively in marketing and branding to oversee the transition, Shapewear Central became Distrivision, a distributorship and partnering franchise supplying everything from Shapewear and active wear to lingerie and post-op products. The business now offers employment and identity to hundreds of people across its headquarters and partner stores, founded on a legacy of honesty and transparency.

Systemic obstacles birthing a generation of determined entrepreneurs

A major factor attracting immigrants to entrepreneurship in foreign countries is the inadequacy of education for employment prospects in their home countries. In Colombia and many third-world countries, having a university education or degree certificate is not always a sure bet to getting established in the corporate world. Owning a business or accepting lower-tier employment are usually the only options for families without top-tier connections, and this trend forms a strong mindset within migrating citizens.

Also, many analysts claim employment difficulties are only faced by undocumented immigrants, but in reality, the discrimination spreads wider and also affects fully documented people, including those with permanent residencies.

The immigrants eagerness to make an honest and sufficient living is often taken advantage of by dishonest employers. They may be forced to work longer hours at reduced pay, work without employee benefits and insurance, show up on holidays, be kept in the dark about their rights and entitlements, and be subjected to racial discrimination and harassment.

This harsh reality becomes a strong motivation to establish their own businesses, be their own bosses, and provide better opportunities for their community members and other people.

As Katherine recalls, Maria Ruth built her business from scratch on the foundations of honesty, transparency, decency, and trust between the brand, its patrons, and partners. Despite the language being a barrier at first and other trials she faced as a young Hispanic woman in America running an importation business, Maria Ruth was determined to succeed. Holding onto her principles and values, today, she continues to run a business built on passion, grit, and communal love.

Katherine says: We focused on creating an image that will identify more with what we do, which is wholesale distribution as a company. We focused on the transparency, love, and care with which we work together, along with the tireless effort we put into helping our business partners grow both the business owner and our suppliers to maximize their results by being transparent and trustworthy.

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Tesla’s Stock Tumbles After Q4 Earnings Miss and Production Growth Warning

Ryan Lenett

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Tesla, led by CEO Elon Musk, revealed its fourth-quarter earnings, which fell below the predictions of analysts. Consequently, Tesla’s shares dropped in value. In Q4, Tesla reported revenues of $25.17 billion, missing the anticipated $25.87 billion and marking merely a 3% increase from the prior year. Their adjusted earnings per share (EPS) came in at $0.71, shy of the expected $0.73, and their adjusted net income of $2.486 billion was under the projected $2.61 billion.

Downward Pressure on Profit Margins

The companys drop in profits can in part be traced back to lower margins due to price cuts that started in late 2022. Q4s gross margin was 17.6%, which is down from last year and slightly less than the 17.9% seen.

Lowered Production Growth Expectations

Tesla also hinted that its vehicle growth rate in 2024 might be “noticeably lower” than this years rate. It suggests that hitting analyst’s predictions of 2.19 million vehicles for 2024, up 21% from 2023, might not happen. The slower growth rate is partly because theyre starting a next-gen vehicle at their Texas Gigafactory.

Next-Generation Vehicle Launch

  • Anticipated Release: Elon Musk confirmed that Tesla’s next-gen vehicle is expected to enter production in the second half of 2025.
  • Innovative Manufacturing: Tesla aims to revolutionize vehicle manufacturing with its new platform, focusing on efficient production at Gigafactory Texas.

Challenges and Opportunities Ahead

Looking ahead, Tesla faces hurdles like slower growth and more competition; however, its also seeing new possibilities. They’re launching the Cybertruck and working on an Optimus humanoid robot, showing Teslas eagerness to mix up its offerings and break into fresh market areas.

Elon Musk’s Ambitions and Leadership

As for Elon Musk, he stays firm at Teslas helm, ready to push the company even further. Even though some are questioning his intention to own a quarter of Tesla, Musk is all in to steer the brand towards bright prospects in AI and robotics. His plan covers more than just making electric cars he’s looking at reshaping Tesla into an AI and robotics powerhouse.

Conclusion: Navigating a Transition Phase

Wrapping things up, Tesla’s newest financial results, followed by a dip in their stock price, show a biz that’s changing pace. Even though Tesla’s always moving forward and coming up with fresh ideas, it’s starting to deal with a market that’s not so new anymore. Plus, they’ve got to figure out how to make more of their latest goods without messing up. The next twelve months are super important for Tesla. They’ve got to get through these tough spots but still stay at the top of the game when it comes to electric cars.

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Amazon Prime Video to Incorporate Ads Starting January 29th

Cam Speck

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Beginning on January 29th, folks with Amazon Prime Video will see a big switch: TV shows and movies will start to include ads. Amazon is shaking things up by rolling out these ads across big markets such as the U.S., U.K., Germany, and Canada to start with. Later down the road, places like France, Italy, Spain, Mexico, and Australia will have them too.

Subscription Changes and Costs

To avoid ads, users have the option to pay an additional $2.99 per month. This means the current $14.99 per month Prime subscription would increase to $17.98 per month, and the standalone Prime Video subscription would jump from $8.99 to $11.98 per month. Amazon has assured that their ad-supported tier will have “meaningfully fewer ads than linear TV and other streaming TV providers.”

Financial Implications and Market Analysis

  • Revenue Projections: Morgan Stanley predicts that Prime Video ads might rake in an impressive $3.3 billion in 2024 and could climb to $7.1 billion by 2026. Moffett Nathanson, a different analyst group, gives a lower forecast yet expects big gains too.
  • Market Impact: Analysts from MoffettNathanson predict Amazon’s move will disrupt the market, potentially stealing share from cable networks and ad-supported VOD players. They expect this change to be a “disruptive force” in the advertising and streaming landscape.
  • Prime Video’s Viewer Reach: Alexys Coronel, head of U.S. entertainment and telecommunications for Amazon Ads, highlighted Prime Video’s potential to reach 115 million unique viewers in the U.S. alone.
  • Amazon’s Expanding Digital Ad Market: Amazon reported an ad revenue of $12.06 billion in the third quarter of 2023, a 26% increase year-over-year, underlining its growing dominance in the digital advertising space.

User Response and Projections

Despite the introduction of ads, most Prime Video users are expected to continue with the ad-supported version. MoffettNathanson’s projections assume about 15% of Prime Video users will opt for the ad-free subscription. The firm’s models also predict an incremental revenue of $500 million per year from Prime members who choose to avoid ads.

Comparison with Competitors and Future Trends

Amazon is not alone in this shift toward ad-supported streaming. Competitors like Netflix, Disney Plus, Max, Paramount Plus, Hulu, and Peacock have already implemented similar strategies. However, Amazon’s move into advertising is significant due to its massive market share and extensive viewer reach. By 2025, the U.S. connected TV and ad-supported VOD market is estimated to be around $16 billion, with Amazon and Disney expected to lead the segment.

Amazon’s Long-term Content Investment Strategy

Amazon points out that it needs to keep pouring money into great shows and movies and plans to do so for a long time. This is part of a bigger trend in the streaming world, where services are leaning on ad money to grow their list of offerings. 

Implications for Amazon Prime Members

Choice for Consumers

Amazon’s new ad strategy gives Prime members a choice: stick with the version that has ads and not pay more or cough up extra cash to watch without any interruptions. Consumers will have to decide if they’re okay with ads or if they’d rather spend more each month. 

Impact on Viewing Habits

Putting ads into the mix might change how some Prime members watch stuff. Amazon plans to have shorter ads than you’d find on regular TV to make things less annoying. But whether this will keep viewers happy and engaged is still up in the air.

Conclusion

Ads are now on Amazon Prime Video, and it’s a big deal. It’s going to change the way we watch stuff and how businesses make money from their services. Amazon has tons of users and a lot of money, so they’re likely to become a really important part of the world where streaming services are free but show ads. This is a fresh start for Prime Video. They’re trying to make sure viewers still have a good time while they also make more cash in this fast-changing area of digital fun. For the nitty-gritty on Amazon Prime Video’s shiny new way that includes ads,click here.

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The Impact of the Blocked JetBlue-Spirit Merger on the Airline Industry and Communities

Cam Speck

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This week marked a significant turning point in the U.S. airline industry as a federal judge blocked the $3.8 billion deal between the sixth-largest and seventh-largest U.S. airlines, JetBlue and Spirit. This decision by Judge William Young not only impacts these two airlines but also signals an end to four decades of consistent airline consolidation that has affected passengers, workers, smaller communities, and commerce. The ruling is seen as a triumph for the Biden Justice Department’s aggressive antitrust enforcement and sets a new precedent in the regulation of airline mergers.

The Local Impact: Arnold Palmer Regional Airport

The ruling leaves Spirit Airlines with an uncertain future, a situation that could profoundly impact the Arnold Palmer Regional Airport (LBE) in Latrobe, Pennsylvania. The airport, serving areas east of Pittsburgh, is heavily reliant on Spirit Airlines, which is its only commercial carrier. This dependency highlights the broader implications of the merger’s failure on smaller communities and regional economies.

  • Economic Contribution: A 2022 study by the Pennsylvania Department of Transportation estimated the economic impact of arriving and departing passengers from LBE at $213.9 million, with $100 million attributed to Spirit Airlines travelers.
  • Reduced Service: Currently, Spirit has scaled down its services at LBE to a single direct flight to Orlando, though hopes remain for the resumption of service to Myrtle Beach in the spring.

The Unique Role of Spirit Airlines

Spirit Airlines has made a name for itself by focusing on vacation-goers, university students, missionaries, and anyone else on the lookout for cheap flights without fancy extras. This approach turned the airline into a key lifeline, especially in places like South Florida. Here, it battles competitors with low prices, providing budget-friendly holiday choices and playing a significant role in the tourism industry.

  • Impact on Consumers: The absence of Spirit from the market could lead to increased prices for tourists and limit vacation options for families in South Florida.
  • Service to Offbeat Destinations: Spirits focus on destinations like Port-au-Prince during times of unrest has been invaluable for certain communities. However, its approach to baggage and low-cost tickets has drawn mixed reactions from consumers in these regions.

JetBlue and Spirit’s Struggle in a Constrained Industry

The halted merger highlights bigger problems in the airline business. This industry is an oligopoly with just a handful of big companies in charge, which makes it tough for smaller ones, such as JetBlue and Spirit, to expand on their own. Also, there are issues with making enough planes: Airlines can’t get new planes as fast as they’d like. Supply chain troubles play a role here, and so does Airbus’s stronghold on plane making, which limits its growth. Boeing’s recent quality control challenges further exacerbate this problem.

  • Engine Issues and Airline Growth Constraints: Spirit’s exclusive use of Pratt & Whitney engines, which have had reliability issues, highlights the technical and operational hurdles facing airlines.

Implications of the Ruling

The ruling against the merger is seen as a necessary step to prevent further consolidation and maintain competition in the airline industry. However, it also emphasizes the need to address the larger issues of oligopolistic control and manufacturing constraints.

  • Future of Air Travel: The blockage of the merger could prompt a reevaluation of strategies within the industry, focusing on fair pricing and expanding manufacturing capacities.
  • Potential Appeal and Industry Response: The airlines have formally appealed the decision, citing the potential benefits of a larger JetBlue in fostering competitive pricing and service innovation.

Conclusion

The outcome of the JetBlue-Spirit merger blockage extends beyond the airlines themselves, affecting regional economies, consumer choices, and the broader airline industry. While the decision has been hailed for preventing further consolidation, it also highlights critical challenges that the industry must address to ensure sustainable growth and competition. The situation underscores the delicate balance between maintaining competitive markets and supporting the growth and development of the airline sector. For more in-depth analysis, you can read a related article here.

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