Live data from Hacker News

How Indian Americans Came to Run Half of All U.S. Motels

nationalgeographic.com

31–40 of 256 posts

Re: How Indian Americans Came to Run Half of All U.S. Motels

#31
post #28

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

> There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money

I think the individualist streak in American culture is better shown by people being unwilling to seek help from friends/family. I might call an unwillingness to help others (assuming one can afford to do so) selfishness -- not individualism. But what I have seen in American is, as you said, individualism: People are prideful and want to create wealth without help.

An interesting clarification: People will more readily accept help from strangers -- e.g. a Kickstarter campaign, bank loan, or VC investment doesn't diminish one's pride in the way that the same support from someone's parents might.

There's talk elsewhere in this article's comments here about the "killer feature" that these Indian Americans have. I would argue that the true killer feature is not even access to zero-interest capital. It's a culture that actively fights against pride and individualism.

There are surely tradeoffs, but it's hard to deny the power that can come from children and adults alike all looking to family for help... and seeing that help not as something which diminishes their power but rather as something that bolsters it.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#33

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

I recently learned about oulipo ( https://en.wikipedia.org/wiki/Oulipo ) who create works with constraints (sometimes severe) and the results are quite amazing. Lack of resources can be sometimes a blessing in disguise whether it is literature or hard business. I wonder why Americans don't do this (maybe they do, I don't know) - why borrow from banks (or VCs etc) with strict strings attached, instead of supporting on…

There has been a long term decline of community banks, which might be the more American equivalent of this kind of lending.

https://www.stlouisfed.org/Publications/Central-Banker/Fall-...

The Small Business Administration also helps with loan guarantees. So the support is sort of there, but takes a different form, and maybe one could say the impersonal nature of it is both a strength and a weakness in comparison. Numbers of small businesses and their starts have been in decline too. I suspect this has to do with the difficulty of more and more Americans in attaining any savings from their wages (let alone enough to set aside to help capitalize a small business).

Re: How Indian Americans Came to Run Half of All U.S. Motels

#34
post #28

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

Jeff Bezos also got a loan from his parents. Having parents with disposable capital in the >$50k range is definitely not something the majority of American families can provide.

https://medium.com/@timconneally/companies-started-by-loans-...

Re: How Indian Americans Came to Run Half of All U.S. Motels

#35

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

Really? The killer app here seems to be access to capital on amazing terms. > They would give each other handshake loans—no collateral, no payment schedule, just pay when you can

Also access to cheap/free labor, also perhaps underaged labor?

Re: How Indian Americans Came to Run Half of All U.S. Motels

#36
post #28

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

There are good reasons that many people avoid lending money to (or even doing business with) close friends and relatives. If the venture doesn't succeed, and the friend is unable to repay the loan, it can create animosity and bitterness that wreck the relationship. Even if things go well, it can create an uncomfortable power dynamic that makes the relationship less pleasant and friendly.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#37
post #28

This model has led to success for other immigrant groups in other industries. > Many followed his advice. “They would give each other handshake loans—no collateral, no payment schedule, just pay when you can,” Doshi explains. Once a family purchased a motel, they would live there, and the family members would do all the tasks needed to run it, from cleaning rooms to checking in guests. That helped keep costs down, an…

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

I don't really think one paragraph follows from the other. You say Americans are uniquely unwilling to pool their financial resources to family members, then cite examples of that happening.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#38
post #35

Earlier quoted context omitted.

Really? The killer app here seems to be access to capital on amazing terms. > They would give each other handshake loans—no collateral, no payment schedule, just pay when you can

Also access to cheap/free labor, also perhaps underaged labor?

You could make the argument that startup founders who aren't taking a salary from their early stage startup are also performing "free, illegally so" labor.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#39
post #28

Earlier quoted context omitted.

It's not (just) that most Americans feel these jobs aren't worth their time. There is a very strong individualist streak in American culture and a very strong taboo against lending friends or family members money for any reason. There are plenty of American families who have relations who could easily help bootstrap a profitable small business in the way described here. It just doesn't happen that way very often. Ins…

There are good reasons that many people avoid lending money to (or even doing business with) close friends and relatives. If the venture doesn't succeed, and the friend is unable to repay the loan, it can create animosity and bitterness that wreck the relationship. Even if things go well, it can create an uncomfortable power dynamic that makes the relationship less pleasant and friendly.

I also think a middle-class family is in the "sweet spot" where they have a lot to lose from offering a loan as opposed to either not having a lot to lose in the first place or being so well-off that they can easily just write off a bad investment.

Re: How Indian Americans Came to Run Half of All U.S. Motels

#40

I am from gujarat, do not own any motel. In my experience I can definitely believe this to be true. Personally know so many people heho owns motels. I am shocked about the 50% though!

No one who travels and stays in small-to-medium-sized hotels is shocked by this. I have a complaint, however. We have so many Indian-Americans distributed all over the nation, and it is still fairly difficult to find good Indian food outside big cities.

I've wondered about this, but what I've heard is that few Indian families eat out very often.
Post reply on HN