The Hill
Insight provided by Hoppy Randazzo, originally published on May 4th, 2021.
As the world becomes more technologically advanced, businesses small and large will be forced to either adapt to the changing economy or close-up shop. One outlier of this trend is The Hill, an Italian community located in St. Louis, Missouri. Created in 1830, The Hill was a large clay mining area that attracted an enormous number of Italian immigrants. It became a little Italy which they named The Hill because of the neighborhood’s proximity to the highest point in St. Louis. The area has been home to several famous athletes such as Yogi Berra and Joe Garagiola, which only helped its reputation improve. Over time, the community grew and several restaurants, markets, and small businesses opened. However as times changed, The Hill never fully modernized as it stayed rooted in its traditional culture.
This begs the question: How has The Hill survived and even thrived this long with business going in an automated, technology-oriented direction? For example, the Global Fintech Market was valued at $5504b in 2019 with a CAGR of 23.58%. More so, there are several subsets of that industry, like Payment Processing, Banking, and Financial services, that have raised $116b, $77b, and $21b respectively. As these markets continue to grow and produce innovative products, it is a wonder how a small community like The Hill has stayed sustainable for so long. For instance, most companies in The Hill are old fashioned and take either cash or card. However, they could become more efficient by adopting a modernized point of sale system from a company like Toast or Square. The reason they have not made the change is there has not been a need to yet. The small businesses located in the neighborhood have survived for decades on the same revenue streams and have even grown. The question presents itself on how they have been able to achieve expansion with such innovative competitors. The answer lies in the community and, more specifically, the people.
The Hill has deep roots when it comes to its residents. The U.S. Census taken in 2010 indicated that 75% of people living in the community were of Italian descent. More so, most of these individuals, Italian or not, have lived in or around the territory for most of their lives. They are embedded into the area’s reputation and success, which they take extreme pride in. The companies grow because the people care and support small organizations in their community. For example, DiGregorio’s market which began in June of 1971 is still doing business today. This small grocery store is known for its quality products and is cherished by the residents. More so, restaurants in The Hill have expanded over time. To illustrate, Bartolino’s Osteria which is an Italian, family-owned establishment began in 1969. Since then, the family has expanded to open three more locations with the last one launching fairly recently in 2016.
Everything from the restaurants to the repair shops in The Hill are home grown and are a reflection of the community’s ability to be self-sustaining. With such rich traditions and support from its residents the neighborhood can bypass the large surge of technological advancement and grow the old fashioned way. Now, of course the argument could be made that the organizations could grow faster and more efficiently with the help of modernizing their systems. However, people need people, and when a community comes together to support each other it is amazing the economic safety and culture that is created. The increase in technological innovation is incredible, however, the argument has been made that this spike has put the world at risk of losing human interaction and culture. A community like The Hill displays why staying in touch with your roots is such an important value and shows that people will always need the support of others to thrive.
Sources:
https://www.tripsavvy.com/st-louis-famous-italian-neighborhood-the-hill-3137314
https://thehillstlouis.com/listing/digregorios-market/
https://explorestlouis.com/things-to-do/neighborhoods/the-hill/
https://my.pitchbook.com/search-results/s78188899/market_map
https://www.digregoriofoods.com/history/
https://www.chrispancakeanddining.com/about/
Hoppy Randazzo is a sophomore from St. Louis, Missouri. He is a Business Administration major with a focus in Finance with a minor in Economics. Hoppy was raised in a small business setting as he grew up working for his father’s coin-operated laundry company. It was there he learned the importance of a small business’s work ethic and reputation. This helped spark his interest in private equity.
