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Census data is a key to business investment

Diversify? Downsize? Hire more people? Do I need more space? Making these decisions isn't easy for small business owners.

What if there was a website that contained data about neighborhood demographics that could tell you if a new group of people – potential customers – were moving in or if the existing residents were earning more than they were 10 years ago?

There is, and it's free. 

The U.S. Census has all of this information, broken down by state and city. Possessing the census data is like having a marketing firm that allows store owners to know the income and the ethnic makeup of their customers.

An educational push from Community Board 12 and the U.S. Census Department might make that data even more valuable and give city agencies and businesses a clearer picture of Northern Manhattan, a chronically undercounted neighborhood.

 "A lot of immigrants fear putting their names on paper," Community Board 12 Chair Manny Velazquez said at an April 2 press conference announcing the educational campaign.

Every government service provided to residents and businesses – new and existing – is influenced by the census data collected.

"We're talking about not millions of dollars in 10 years, but billions of dollars," Velazquez said.

"All the demographic information is important [for businesses]," Dennis Reeder, the executive director of the Washington Heights and the Inwood Development Corporation, said. "It's used as a planning tool."

Reeder said small businesses, like bodegas, don't tap into the census data when making business decisions.

"Most bodegas probably eyeball the neighborhood instead of using census data," he said.

But maybe they should.

The census has data on grocery stores and their annual profits, number of employees and how long they've been in business – valuable information for anyone who owns or is considering opening a business.

Larger businesses certainly analyze the census data because it adds some certainty to the decision making process. In particular, they're looking at average incomes.

"It tells them how much money is floating around the neighborhood," Reeder said.

The biggest reason why Northern Manhattan residents were undercounted in the 2000 census is because many undocumented immigrants were afraid to provide information for fear of a government backlash. But U.S. Census officials and community leaders are working hard to get out the message that it's against the law for the census to share data about a specific individual with anyone. Rather, the census is about big numbers and general trends.

"We have to be out there ourselves and tell people you are not going to be turned in," Barbara Lowry, executive director of the Northern Manhattan Improvement Corporation, said.

 

In briefs section of Edition 370 30 April 2009

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