Navigating through the obstacles as an undocumented individual seeking employment and income generation in the United States is not an easy task. Luckily, entrepreneurship offers great opportunities for people to legally make a living and support themselves. The freedom and flexibility in entrepreneurship allow individuals to start their businesses in virtually any industry. The first blog in this series discussed opportunities and resources available for individuals interested in starting their business in the construction industry. This blog explores some of the fastest growing service industries and the opportunities they offer to new entrepreneurs.
The service sector is very wide and covers several fields as it is the third largest sector in the economy, after the raw materials and manufacturing sectors. Some of the fastest growing service industries include personal care and services, travel, leisure and hospitality, and event planning. Hotels, entertainment, transportation, and food services fall within the travel, leisure and hospitality industry. Personal care and services comprise businesses such as barbershops, massage parlors, hair and nail salons, amongst others. Event planning services include agencies that focus on planning weddings, parties, conferences, conventions, and other events.
The leisure and hospitality industries have added an average of 82,000 jobs per month, according to the Bureau of Labor Statistics. Restaurants are amongst the most popular establishments in this industry, and they contribute immensely to the country’s economy. According to Statista, the output for the U.S. full-service restaurant industry reached an estimate of over $76.5 billion in 2022. The requirements to open and operate food establishments vary from state to state. However, a business plan, structure, and license are crucial to start the process. The great thing about business licenses is that a social security number is not required. With a business license, an Employment Identification Number (EIN) would be assigned to complete the rest of the process. Some of the requirements to safely open and operate a restaurant, food truck, or similar food establishment are a food service license, certificate of occupancy, health permits, liquor license, and permits to sell, amongst others. The Connecticut State Department of Consumer Protection website contains information regarding how to apply for licenses, permits, a helpful checklist tool to start your new business, amongst other resources. Please make sure to research what documentation is needed according to where the potential business will be located.
The BLS projects that approximately 544,800 new jobs will be added to the personal care and service industry over the next ten years. By 2028, it predicts that personal care professions will increase by 17.4%. Similar to the leisure and hospitality industries, the requirements to receive a cosmetology license are different for each state. Although most states require a social security number to apply for a cosmetology license, this is not the case for states like New Jersey and California, if all licensing requirements are met. The New Jersey Division of Consumer Affairs website provides information about the requirements needed to apply for a cosmetology license, as well as answers to the most frequently asked questions to help with your application. Some of these requirements may include attending an approved cosmetology school for the required number of hours and successfully completing an exam. Becoming a licensed cosmetologist is the first step to starting a business in this industry. One of the most common business structures for hair salons, barbershops, and nail salons is a Limited Liability Company (LLC), which helps protect owners from personal liabilities. Having received a business license, different permits may be required such as sales and tax permits, occupancy permits, and department of health permits. It is important to note that these requirements could be different for different states and municipalities. As an entrepreneur, ensuring all requirements are met is extremely important to avoid any issues in the future that could compromise the business’ future.
From 2022 to 2032, employment of meeting, convention, and event planners is projected to grow 8 percent, according to the BLS. Although there is not a specific license for event planners, some states might require individuals to have a business license. Additionally, depending on the type of services event planners will provide, certain licenses might be required. For instance, if alcohol or food will be served at a specific event, then licenses to serve alcohol and/or food might be required. Similarly, if events are held in a public space or will have live entertainment such as music, other permits might be required. The Connecticut License and Permit Center website could help determine what permits, credentials, or licenses might be required to operate and run an event planning business, depending on the services it will provide. Staying compliant with all the necessary requirements is crucial in business to avoid any penalties in the future and build trustworthy relationships with customers, suppliers, and other important stakeholders.
Although starting a business in the service sector might feel overwhelming, the opportunities are endless. Additionally, there are several resources available that could help prepare individuals for their entrepreneurial journeys and fund their businesses. One of these resources is SCORE, which is a website that provides in person and online workshops and events focused on developing entrepreneurial skills and business growing. In Connecticut, the Hartford Economic Development Corporation (HEDCO) is a program that helps with grants and technical assistance to small businesses with no more than 25 full time and/or part time employees. Priority is given to minority owned businesses. In the Greater Hartford area, the Social Enterprise Trust, Inc. (reSET) helps with grants and assistance to small food related businesses. They also prioritize minority owned businesses and those located in distressed areas in greater Hartford. Check out their websites to find out the requirements and eligibility for each of these grants. Also, the Undocumented and DACAmented Students Affinity Community page has several other resources such as events and professional organizations to help in the entrepreneurial journey. Follow our affinity community to stay up to date with any new resources and information related to career development for undocumented and DACAmented students.
