Program Launched to Help Recent Soviet Jewish Immigrants Establish Small Businesses

— Business and government representatives have launched a program aimed at helping recent Soviet Jewish immigrants in New York establish small businesses which, the representatives say, will add a new dimension to existing efforts to revitalize declining neighborhoods in the city.

An independent study, “New Enterprises for New Americans,” released at a press conference here sponsored by the Federation of Jewish Philanthropies of New York and the Federation Employment and Guidance Service (FEGS), was designed to provide information that would enable the Federation to determine whether there is a need for special technical assistance geared to Soviet immigrants, and if so, to determine the key components of a program to provide such assistance.

According to Sanford Solender, executive vice president of the Federation, and Alfred Miller, executive director of FEGS, the study “is not the end in itself. We hope that its findings and recommendations mark a beginning of a new effort to marshall resources and develop the necessary and innovative programming to assure that the new immigrants to our country will have full access to our free enterprise system.”

PROBLEMS FACED BY SOVIET IMMIGRANTS

The study, issued by INTERFACE, a nonprofit public policy research organization funded through a grant from the Herman Muehlstein Foundation, noted that Soviet immigrants face problems ranging from unrealistic expectations in the American business world to a lack of familiarity with local laws and customs.

The report said that in recent years more than 50,000 immigrants have settled in New York seeking political, religious and economic freedom, but, despite their ambitions, face major obstacles beyond those usually encountered by aspiring entrepreneurs. Based on a study of 69 small businesses operated by Soviet immigrants in New York City, the report noted some of the immigrants’ psychological problems.

These included: “a misunderstanding of the binding nature of agreements caused by familiarity with a more informal style of business arrangements based on faith and trust; a misconception that it is easy to get rich quick’ in the United States; a participation in the ‘black market’ approach to doing business; an unfamiliarity with having to choose among a wide variety of consumer goods; a dependence on government, an attitude fostered under the socialist system; and, finally, the immigrants’ character formed by the need for survival in the USSR.”

The major problem, the report noted, stems from the attitude immigrants bring from the Soviet Union and from a poor understanding of certain concepts of the American business world. Practical problems exist, such as a lack of awareness of business responsibilities and an inability to evaluate profitability of a potential business venture.

Other problems involve the immigrants’ inability to obtain adequate financing, a failure to understand the tax accounting system and the inability to understand the concept of credit. The report also cited legal aspects, operating procedures and language difficulties as problems encountered by immigrants. Some of the characteristics of those interviewed showed that immigrants are mainly middle aged and predominantly from European parts of the Soviet Union.

The report stressed that despite its concentration on Soviet Jewish immigrants, the conclusions are applicable to any group of immigrants that would consider opening a small business in America.

The report recommended that the Federation should implement a comprehensive technical assistance program for Soviet immigrants interested in opening their own businesses. Also, the Federation, through its central office as well as its community based agencies, should begin a program to link resources of community boards and Local Development Corporations with the private resources and initiative of the Soviet immigrant community. The report concluded that the Federation must initiate a financial assistance program for Soviet Immigrants interested in opening their own businesses.