Young and in charge

SAN JUAN — Not yet 30, Ernesto Gonzalez has had bigger successes in business than most entrepreneurs achieve in a lifetime.

At 33, Denise Bergeron is a business owner — a club usually reserved for those closer to retirement than high school graduation.

Throughout the Rio Grande Valley, one of the statistically youngest regions in the entire country, many business owners are proving that gusto and ambition in the world of commerce are just as vital as experience.

Locally, more young people are deciding to take on the daunting task of owning a business, said Maria Juarez, director of the Small Business Development Center at the University of Texas-Pan American.

Nationwide, fewer than 14 percent of business owners are under 35. Statistics for the Rio Grande Valley region aren’t available, but business advisers say about a quarter of those interested in starting a business are under 30 and the numbers are increasing.

Ernesto Gonzalez, the 29-year-old majority owner and president of ILP Printing in San Juan, crafted his business plan at 20 years old, when he was a student at UTPA.

“Originally, I wanted to start a restaurant,” he said.

But his majority investor, his mom, said a restaurant was too risky. After researching other options, Gonzalez developed an interest in printing packaging supplies for maquiladoras and other manufacturers. With no local competitors, Gonzalez knew he could make money on the venture, he said.

“I had to borrow $130,000 for my first printing machine,” he said. “It was a lot of money, but I had thought it out very carefully.”

At 22, his business was off the ground. Seven years later, Gonzalez is servicing major companies such as Black & Decker and Sony. The company employs 35 workers, most older than Gonzalez.

With a new line of products starting now, he expects ILP to bring in $7 million in revenues next year.

“It’s stressful, but it’s been a good experience,” he said. “You grow up thinking you can eat the world. But you get in there and realize it’s a lot of hard work.”

Whether 20 or 35, younger business owners face a slew of dilemmas that many older business owners don’t. Gonzalez said when he was younger, he had to work hard to do business on his own terms. He also had to be creative to get the $130,000 for the equipment, which he received through a loan from the company that sold it to him.

Credit can pose a large barrier to many young business owners, said Juarez, who deals with dozens of potential entrepreneurs weekly.

Borrowers may not face blatant age discrimination, but a lack of credit history can make it difficult to secure loans and financing for supplies and equipment, she said.

“I think, especially right now because of the economy and the credit crunch, banks are much more careful,” Juarez said. “Many young business owners don’t have an established credit history and it can be hard to get financing.”

In December, Bergeron opened her second business, a Fantastic Sam’s hair salon franchise at the corner of North 10 Street and Dove Avenue in McAllen.

Bergeron formerly owned a floral shop near the same location five years earlier, but sold it a short time later. She went to work in real estate, but soon felt the itch to own a business again.

Like Gonzalez, Bergeron looked for a high-demand venture with her new endeavor.

“We wanted something where you didn’t have to wait a week for an appointment to get your hair colored,” she said.

Instead of establishing a start-up venture, she investigated franchises, where she would have professional assistance starting her business.

She found one who was looking for franchisees in the Valley in March and signed an agreement in June. She opened the North McAllen location at the end of November and plans to open two more in the Upper Valley.

“I’m the only one who isn’t a stylist,” she said. “So I’m here from opening until it closes every day.” Despite her age, she said few people in the area have questioned her youth.

“Around here, there are younger people that are doing a lot more,” she said.

Kyle Arnold covers business, the economy and general assignments for The Monitor. You can reach him at (956) 683-4410.