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| In Poor Margins of Paris, New Recipe for Success Is Local | In Poor Margins of Paris, New Recipe for Success Is Local |
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| PARIS — Mourad Benamer remembers the day his parents first visited the sleek new sushi restaurant he had just opened near the Champs-Élysées. Against all odds, Mr. Benamer had broken out of the rough suburb, or banlieue, where he grew up in a family of poor Moroccan immigrants just northeast of Paris, and hit on a formula that would soon turn into a business success beyond his dreams. | PARIS — Mourad Benamer remembers the day his parents first visited the sleek new sushi restaurant he had just opened near the Champs-Élysées. Against all odds, Mr. Benamer had broken out of the rough suburb, or banlieue, where he grew up in a family of poor Moroccan immigrants just northeast of Paris, and hit on a formula that would soon turn into a business success beyond his dreams. |
| “We came from a place where there was injustice and a lack of opportunity,” Mr. Benamer, 36, recalled of his banlieue, Bondy. But there he was in the heart of tourist Paris, on a winter afternoon in 2007, with his mother pointing incredulously to truffle-and-foie-gras maki being rolled out to patrons at Eat Sushi, which since then has expanded into a chain of 38 restaurants across France. | “We came from a place where there was injustice and a lack of opportunity,” Mr. Benamer, 36, recalled of his banlieue, Bondy. But there he was in the heart of tourist Paris, on a winter afternoon in 2007, with his mother pointing incredulously to truffle-and-foie-gras maki being rolled out to patrons at Eat Sushi, which since then has expanded into a chain of 38 restaurants across France. |
| “How did you manage to do all this?” she asked. | “How did you manage to do all this?” she asked. |
| His answer was simple: he did it on his own. | His answer was simple: he did it on his own. |
| “I was not going to let this feeling that we have no chance keep me closed inside the banlieue,” Mr. Benamer recalled recently. | “I was not going to let this feeling that we have no chance keep me closed inside the banlieue,” Mr. Benamer recalled recently. |
| For decades, the disadvantaged suburbs that ring Paris and other large French cities have been places of privation, plagued by discrimination and poverty. France has long vowed to improve the plight of the banlieue populations, often Muslim and primarily people with Arab or sub-Saharan African family roots in the French colonial past. Despite pledges by Nicolas Sarkozy when he was president to address economic and social inequality after a series of violent riots in 2005 and 2007, though, critics say little has changed. | For decades, the disadvantaged suburbs that ring Paris and other large French cities have been places of privation, plagued by discrimination and poverty. France has long vowed to improve the plight of the banlieue populations, often Muslim and primarily people with Arab or sub-Saharan African family roots in the French colonial past. Despite pledges by Nicolas Sarkozy when he was president to address economic and social inequality after a series of violent riots in 2005 and 2007, though, critics say little has changed. |
| That is why a new generation of people like Mr. Benamer are trying to turn the suburbs into incubators for entrepreneurs, who see using their own initiative as the only way up and out of the banlieues, which are home to an estimated 10 percent of France’s 63.7 million people. | That is why a new generation of people like Mr. Benamer are trying to turn the suburbs into incubators for entrepreneurs, who see using their own initiative as the only way up and out of the banlieues, which are home to an estimated 10 percent of France’s 63.7 million people. |
| Through persistent lobbying, banlieue entrepreneurs have been founding “angel” investment funds, persuading big French companies like AXA Insurance and BNP Paribas to contribute seed money that fuel start-ups ranging from trash removal to taxi fleets. It was one such fund that recently helped finance the national expansion of Mr. Benamer’s Eat Sushi chain. | Through persistent lobbying, banlieue entrepreneurs have been founding “angel” investment funds, persuading big French companies like AXA Insurance and BNP Paribas to contribute seed money that fuel start-ups ranging from trash removal to taxi fleets. It was one such fund that recently helped finance the national expansion of Mr. Benamer’s Eat Sushi chain. |
| No one can yet quantify the new businesses emerging from this movement, or measure its success. But the activity is occurring largely outside the sphere of the French state. | No one can yet quantify the new businesses emerging from this movement, or measure its success. But the activity is occurring largely outside the sphere of the French state. |
| “If we wait for the government to do something, people will just remain stuck,” Mr. Benamer said. “If we want things to improve, we have to do it ourselves.” | “If we wait for the government to do something, people will just remain stuck,” Mr. Benamer said. “If we want things to improve, we have to do it ourselves.” |
| As part of the self-help effort, banlieue-based organizations that promote ethnic diversity have been aggressive about placing minorities into mentoring and jobs programs at French companies that as little as a decade ago routinely rejected applicants with non-French names. | As part of the self-help effort, banlieue-based organizations that promote ethnic diversity have been aggressive about placing minorities into mentoring and jobs programs at French companies that as little as a decade ago routinely rejected applicants with non-French names. |
| “Things are changing,” said Majid El Jarroudi, a consultant of Moroccan origin, who grew up in the Paris banlieue of Montreuil. | “Things are changing,” said Majid El Jarroudi, a consultant of Moroccan origin, who grew up in the Paris banlieue of Montreuil. |
| Mr. Jarroudi, 36, started his career operating a small restaurant. He founded an organization, Adive, to assist banlieue entrepreneurs after visiting the United States and marveling at how much easier it seemed for minorities to move ahead. | Mr. Jarroudi, 36, started his career operating a small restaurant. He founded an organization, Adive, to assist banlieue entrepreneurs after visiting the United States and marveling at how much easier it seemed for minorities to move ahead. |
| Attitudes have shifted slowly in France, he said, but these days, “there is a growing recognition that the banlieues should not be seen as a place to fear, but as a source of dynamism, full of people who are eager to work and to succeed.” | Attitudes have shifted slowly in France, he said, but these days, “there is a growing recognition that the banlieues should not be seen as a place to fear, but as a source of dynamism, full of people who are eager to work and to succeed.” |
| Mr. Benamer is a case in point. One of the youngest in a family of 10 children, with illiterate parents, he grew up in the gritty Bondy suburb, which was engulfed in the 2005 and 2007 riots, although he and his family avoided the trouble. After getting a vocational degree when he was 18, he started a small sandwich business with his younger brother, Yahia. Working 13-hour days, they were quickly selling more than 2,000 sandwiches a day to local colleges. | Mr. Benamer is a case in point. One of the youngest in a family of 10 children, with illiterate parents, he grew up in the gritty Bondy suburb, which was engulfed in the 2005 and 2007 riots, although he and his family avoided the trouble. After getting a vocational degree when he was 18, he started a small sandwich business with his younger brother, Yahia. Working 13-hour days, they were quickly selling more than 2,000 sandwiches a day to local colleges. |
| Soon, they set their sights on takeout sushi, a market in which Mr. Benamer saw greater potential. In 2006, the brothers co-founded Eat Sushi, with a flagship outlet in the heart of Paris. Last year, an angel investment fund, Citizen Capital, took a 30 percent stake, with plans to double by 2015 the number of stores and sales that last year topped 20 million euros (about $26 million). | Soon, they set their sights on takeout sushi, a market in which Mr. Benamer saw greater potential. In 2006, the brothers co-founded Eat Sushi, with a flagship outlet in the heart of Paris. Last year, an angel investment fund, Citizen Capital, took a 30 percent stake, with plans to double by 2015 the number of stores and sales that last year topped 20 million euros (about $26 million). |
| Today, Eat Sushi employs 550 people in cities and banlieues around France in a work force, including managers, with origins in 30 different countries. | Today, Eat Sushi employs 550 people in cities and banlieues around France in a work force, including managers, with origins in 30 different countries. |
| “Look at us — we’re Moroccans selling Japanese sushi to the French,” Mr. Benamer, now married with a child, said on a recent weekend, sitting in his Champs-Élysées restaurant beneath a wall covered with Warhol-style images of a geisha. “If we had allowed ourselves to be stigmatized, France would lose out — on good sushi, yes, but also on the hundreds of jobs we are creating.” | “Look at us — we’re Moroccans selling Japanese sushi to the French,” Mr. Benamer, now married with a child, said on a recent weekend, sitting in his Champs-Élysées restaurant beneath a wall covered with Warhol-style images of a geisha. “If we had allowed ourselves to be stigmatized, France would lose out — on good sushi, yes, but also on the hundreds of jobs we are creating.” |
| Since his election as president a year ago, François Hollande has vowed to create jobs and improve education in distressed banlieues, where unemployment averages 22 percent (compared with 10.5 percent nationally) and youth joblessness is above 30 percent. | Since his election as president a year ago, François Hollande has vowed to create jobs and improve education in distressed banlieues, where unemployment averages 22 percent (compared with 10.5 percent nationally) and youth joblessness is above 30 percent. |
| On Tuesday, the French parliament passed sweeping measures to overhaul the nation’s notoriously rigid labor market to make it easier for employers to hire and fire. | On Tuesday, the French parliament passed sweeping measures to overhaul the nation’s notoriously rigid labor market to make it easier for employers to hire and fire. |
| But the banlieues remain a special challenge. Mr. Hollande announced a plan in March to set aside as much as 180 million euros, or $235 million, in tax breaks for businesses that hire young people from disadvantaged suburban areas. Critics in the banlieues say that instead of subsidizing jobs outside their neighborhoods, France should be encouraging entrepreneurs to create jobs locally. | But the banlieues remain a special challenge. Mr. Hollande announced a plan in March to set aside as much as 180 million euros, or $235 million, in tax breaks for businesses that hire young people from disadvantaged suburban areas. Critics in the banlieues say that instead of subsidizing jobs outside their neighborhoods, France should be encouraging entrepreneurs to create jobs locally. |
| The government has also set up a program, Talents des Cités, that awards cash prizes to innovative young entrepreneurs. But few think that the awards — up to 7,000 euros — add up to anything more than votes of confidence. | The government has also set up a program, Talents des Cités, that awards cash prizes to innovative young entrepreneurs. But few think that the awards — up to 7,000 euros — add up to anything more than votes of confidence. |
| As Mr. Hollande’s popularity plummets, and as he struggles to extract all of France from the economic doldrums, a state solution to the economic problems of the banlieues may remain elusive. France has nothing corresponding to the Small Business Administration in the United States. And banks, which have traditionally shied from business loans in the banlieues, have pulled back even more as Europe’s long-running debt crisis tightens credit throughout the euro zone. | As Mr. Hollande’s popularity plummets, and as he struggles to extract all of France from the economic doldrums, a state solution to the economic problems of the banlieues may remain elusive. France has nothing corresponding to the Small Business Administration in the United States. And banks, which have traditionally shied from business loans in the banlieues, have pulled back even more as Europe’s long-running debt crisis tightens credit throughout the euro zone. |
| In some cases, the French government itself is seen as throwing up roadblocks. | In some cases, the French government itself is seen as throwing up roadblocks. |
| Last year, a pledge by Qatar to invest 50 million euros in start-up funds for the banlieues generated hundreds of inquiries from hopeful entrepreneurs, said Leila Leghmara, vice president of the nonprofit diversity group Aneld, which lobbied Qatar for some of the money. | Last year, a pledge by Qatar to invest 50 million euros in start-up funds for the banlieues generated hundreds of inquiries from hopeful entrepreneurs, said Leila Leghmara, vice president of the nonprofit diversity group Aneld, which lobbied Qatar for some of the money. |
| But the Caisse des Dépôts et Consignation, the French investment agency, plans to direct the money to small and medium-size businesses beyond just those in the banlieues, after criticism from the French far right that Qatari money risked being used to “Islamize” young people. | But the Caisse des Dépôts et Consignation, the French investment agency, plans to direct the money to small and medium-size businesses beyond just those in the banlieues, after criticism from the French far right that Qatari money risked being used to “Islamize” young people. |
| In an interview, Laurent Vigier, the director of international affairs at the French investment agency, denied that such criticisms had played a role. He said that the parties involved had decided that the Qatari bequest would be better used to stoke the broader economy. “It was an obvious choice for the French state and for Qatar,” Mr. Vigier said. | In an interview, Laurent Vigier, the director of international affairs at the French investment agency, denied that such criticisms had played a role. He said that the parties involved had decided that the Qatari bequest would be better used to stoke the broader economy. “It was an obvious choice for the French state and for Qatar,” Mr. Vigier said. |
| But Ms. Leghmara said Muslims in the suburbs interpreted the policy differently. “When they want to integrate,” she said, “they are reminded that they are not entrepreneurs, but Islamists who can’t integrate.” | But Ms. Leghmara said Muslims in the suburbs interpreted the policy differently. “When they want to integrate,” she said, “they are reminded that they are not entrepreneurs, but Islamists who can’t integrate.” |
| It did not calm those resentments when Qatar’s ambassador to France, Mohammed al-Kuwari, told the French news media afterward that the funds were never meant to focus on the banlieues. | It did not calm those resentments when Qatar’s ambassador to France, Mohammed al-Kuwari, told the French news media afterward that the funds were never meant to focus on the banlieues. |
| Whatever the original intent, Mr. Benamer said such episodes could only raise tension in areas with high unemployment, where many people still feel marginalized. While French society is changing the way it views people like him, “there is still precariousness and injustice,” he said. | Whatever the original intent, Mr. Benamer said such episodes could only raise tension in areas with high unemployment, where many people still feel marginalized. While French society is changing the way it views people like him, “there is still precariousness and injustice,” he said. |
| “Those doing the discriminating need to understand that they are contributing to the next revolt,” Mr. Benamer said. | “Those doing the discriminating need to understand that they are contributing to the next revolt,” Mr. Benamer said. |
| For those seeking a path out, the road remains rocky. In France over all, one in two businesses folds after five years. But in the banlieues, half of all new businesses close within three years. Self-help, it seems, can go only so far. | For those seeking a path out, the road remains rocky. In France over all, one in two businesses folds after five years. But in the banlieues, half of all new businesses close within three years. Self-help, it seems, can go only so far. |
| Raoul Sodjinou, a 41-year-old native of the West African country of Benin, pursued his dream of setting up a cosmetics boutique for dark-skinned women in Saint-Denis, another banlieue north of Paris that has been shaken by the riots. | Raoul Sodjinou, a 41-year-old native of the West African country of Benin, pursued his dream of setting up a cosmetics boutique for dark-skinned women in Saint-Denis, another banlieue north of Paris that has been shaken by the riots. |
| Energetic and determined, Mr. Sodjinou in 2008 obtained a loan of 300,000 euros from Business Angels des Cités, a banlieue-based investment fund, to open what he hoped would be the first of 30 stores. | Energetic and determined, Mr. Sodjinou in 2008 obtained a loan of 300,000 euros from Business Angels des Cités, a banlieue-based investment fund, to open what he hoped would be the first of 30 stores. |
| But Mr. Sodjinou lacked exposure to the broader French business culture and access to coaching and guidance, and his inexperience plagued him from the start. He situated his shop at the wrong end of a Métro exit, and the boutique attracted little foot traffic. And in a neighborhood with limited spending power, the 16 euro eyeliners and other premium products he chose to stock were simply too expensive. | But Mr. Sodjinou lacked exposure to the broader French business culture and access to coaching and guidance, and his inexperience plagued him from the start. He situated his shop at the wrong end of a Métro exit, and the boutique attracted little foot traffic. And in a neighborhood with limited spending power, the 16 euro eyeliners and other premium products he chose to stock were simply too expensive. |
| With sales well below his projections, he said Business Angels was now wary of lending him additional money to relocate. | With sales well below his projections, he said Business Angels was now wary of lending him additional money to relocate. |
| “I’m still asking myself, how will I make it,” Mr. Sodjinou said. But he refuses to give up. “Coming from the banlieue and from a modest background gave me a huge energy,” he said. “Those who say stop — that’s not me.” | “I’m still asking myself, how will I make it,” Mr. Sodjinou said. But he refuses to give up. “Coming from the banlieue and from a modest background gave me a huge energy,” he said. “Those who say stop — that’s not me.” |
| Back in his sushi shop, where the phone rang constantly with delivery orders, Mr. Benamer said the only way for people from the banlieues to get ahead was to forge ahead. | Back in his sushi shop, where the phone rang constantly with delivery orders, Mr. Benamer said the only way for people from the banlieues to get ahead was to forge ahead. |
| “The government has a responsibility, yes,” he said. “But it’s up to us to make the change. If we don’t send that message to others, then who will?” | “The government has a responsibility, yes,” he said. “But it’s up to us to make the change. If we don’t send that message to others, then who will?” |
Stefania Rousselle contributed reporting. | Stefania Rousselle contributed reporting. |
| This article has been revised to reflect the following correction: | This article has been revised to reflect the following correction: |
| Correction: May 15, 2013 | Correction: May 15, 2013 |
A | An earlier version of a caption with this article misspelled the name of a Paris suburb. It is La Courneuve, not La Corneuve. |