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Ethnic Entrepreneuship

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[ETHNIC ENTREPRENEUSHIP] | [Tapez le résumé du document ici. Il s’agit généralement d’une courte synthèse du document. Tapez le résumé du document ici. Il s’agit généralement d’une courte synthèse du document.] |

TABLE OF CONTENT

I. INTRODUCTION………………………………………………………Page 2-3

II. ETHNIC ENTREPRENEURSHIP DEFINITION………..Page 4

III. THE CONCEPT…………………………………………………………Page 5-6

IV. ENTREPRENEURIAL THEORY………………………….……Page 7-8-9

V. ETHNIC NICHE…………………………………………………….…..Page 10

VI. CONCLUSION…………………………………………………..…….Page 11

VII. REFERENCES……………………………………………………..…..Page 12-13-14

VIII. APPENDICE…………………………………………………………..Page 15

I. -------------------------------------------------
INTRODUCTION

The recent growth of new ethnic populations in Western societies raised lots of issues. In fact, the ethnic activity is not any more a question of historic interest; nor is it the concern of the company. Because new ethnic populations grew at the same time as Western economies, they are in a phase of slow growth and are facing the massive technological challenge; the ethnic adaptation and the mobility are central questions. (Waldinger 1990). In Europe, the activities managed by persons of minority ethnic groups were always present, but changeable historic circumstances increased jutting out to them and visibility during the last decades.
First of all, the important immigration of former colonies of Southern Europe and North Africa led to a considerable migration. Secondly, thirty years of economic change caused a fundamental transformation of the labor market and a general change of the employment in big companies to the independent work in young companies. This tendency struck certain groups of immigrant much harder than the other native populations, which is reflected by the higher unemployment rate among the immigrants (Barret and all. 1996). Thirdly, the second-hand structure for ethnic activities became more favorable as the change of Europe the industrial structure led to a reappearance of small and medium-sized enterprises (Blaschke 1990).
Factors determining the establishment of an ethnic company have multiple facets and include the education the generation, the local population, the economic situation, the culture and religious beliefs. The result seen by a macroeconomic point of view, presents a very complex and dynamic mosaic, which moves usually too fast for the statistics to maintain.
The concept of ethnic entrepreneurship sends back to the notion of business start-up by individuals belonging to a minority ethnic group, in a given society. If the majority of the researches for this field concern the countries of the North, the phenomenon of the ethnic entrepreneurship exists in all the countries which receive flows of immigration and where several ethnic groups live. The literature uses at the same time the concept of ethnic entrepreneurship and immigrating entrepreneurship without distinguishing them always, what sometimes entails confusions. Certain works approaching the immigrant entrepreneurship indeed concern entrepreneurs of second and sometimes third generation, which is natives who are not strictly immigrants. However, in North America, the concept of ethnic entrepreneurship dominates in the works of the researchers, and it is the one that we chose to retain in this capsule, because it allows to include all the facets.

II. -------------------------------------------------
ETHNIC ENTREPRENEURSHIP DEFINITION

“The ethnic entrepreneurship is a set of connections and regular models of interaction among people sharing a common national context or the experience of migration” (Waldinger 1990). The theoretical explanations of this phenomenon are based on these models of interaction. Diverse definitions for the term ' the ethnic group ' were suggested. Yinger (1985) defined the ethnic group as ”a segment of a bigger society of which the members are thought, by them or the others, of having the common origin and of sharing the important segments of a common culture and which, furthermore, participate in the shared activities in which the common origin and the culture are the significant ingredients”.
Another term referring to ' the ethnic entrepreneurship ' is ' the immigrant entrepreneurs, who in its turn include the individuals who immigrated in reality some years ago. This definition excludes, however, the members of the ethnic minority groups which had lived in the country during several centuries, as Afro-Americans in the USA, the Jews in Europe or the aborigines The ‘Ethnic’ term on the other hand, does not differentiate an immigrant of the minority groups. We can consider the term by the will of the immigrants to be nevertheless used later by speaking specifically about early stages in the process of ethnic enterprising mind, that is when an ethnic group is new in a host society and its members are called as ' immigrants '. Light and Gold (2000) talk about ' the ethnic economy ', which they define as ‘any ethnic or immigrant’s self-employed group, its employers, their co-ethnic employees, and their unpaid family workers’. Furthermore, they also established the concept of ethnic ownership economy whom distinguish between an ethnic economy that rely on property right and ownership and an ‘ethnic economy whose basis are control based on numbers, clustering, and organization, the ethnic-controlled economy’. On the other hand Ethnic ownership economy is described as “the small and medium-size businesses belonging to ethnic or immigrant entrepreneurs and their co-ethnic helpers and workers, ethnic control economy refers to industries, occupations, and organization of the general labor market in which co-ethnic employees exert appreciable and persistent economic power”.

III. -------------------------------------------------
THE CONCEPT

The spirit of ethnic entrepreneurship is not a new phenomenon, as it is anchored in the flows of migration, mostly observed in the United States, (Barret 1996). The history of ethnic entrepreneurship in the USA also explains why the research in this subject has its roots there.
While most authors who have studied immigrant entrepreneurs agree there at worst recognize the particular difficulties (problems with language skills, even adaptation to the rules and formalities of the host country; nostalgia of country of origin - Ray (1988), - or perception of discrimination on the labor market, Light (1972); Bovenderk (1995) - or the credit market with difficult access to financing) and, at best, a history and culture common and shared them together, theories, informed by situations different, then diverge on responses by individuals and / or by groups.
However, as a whole, the literature offers the idea that the inclusion strategy depended on the economic integration project in the host country or back home of origin. Nevertheless, even if the return is considered as in the case of the theory of middleman minorities, the term is so uncertain that it is not in the agenda immediate. The theory is then studied more than in the immigrant entrepreneur and his relationship its inclusion in the host economy. All theories take as their starting point from the immigrant or the proposed voluntary resignation of foothold in life economy of the host country.
Europe, was at the beginning of the century an attractive continent migratory flow. At the end the Second World War, the migrations continued to stream in Europe because of need of workforces which were necessary by the always increasing industrial companies. First, the immigrants came as a temporary workforce, achieving works which required no skills and which could be easily replaced by a succession of sojourners (Waldinger. 1990). The immigrants started to establish themselves down in Europe; the conditions for the ethnic community business were gathered. Businesses started and began to develop and had expanded quickly. In most of the cases, it was the immigrant community which created the demand of specific ethnic goods and the services first of all and which could be only achieved by co-ethnics with the knowledge of preferences of purchase and the taste.
Markets that are running under ethnic entrepreneurs are mainly characterized by the barriers of entry to terms of qualifications, capitals required and educational level. This leads to the opening of a large number of start-ups and, a high failure rate. In order to remain competitive in such conditions, the temptation of the illegal practices is numerous as regards to taxes fraud, employment regulations, minimum wages and employment use of children and migrant workers without documents. (Rath and Kloosterman, 2002).
The occasions offered by the new environment of a host country have a strong influence on the immigrants who are going to seize this chance to become self-employed. These external factors influence the ethnic and immigrant groups (Razin, 2002). The decision as for the market entry, is being an important issue. Generally, individuals who don’t have the chance to be employed are forced to become self-employed. Another group of immigrant on the other hand is forced to become self-employed (Borooah and Hart, on 1999).
The entry decision into a market had a strong impact on the development of theories on ethnic entrepreneurship. We paid a lot of attention on the question of the cultural or structural factors influencing the decision of businesses entry and are thus responsible for the increase of ethnic enterprising mind. The partisans of the approach of culturalist believe that the groups of immigrant are culturally determined by characteristics leading to a propensity to favor the independent work (Masurel. 2004).

IV. -------------------------------------------------
ENTREPRENEURIAL THEORY

Western societies entered resolutely into the era of migration (Castles and Miller, 2003), which gives the ethnic entrepreneurial phenomenon of increasing importance, particularly in its contribution to the economy of the various forms of involvement. And in fact, an extensive literature explores this theme and attempts to explain the phenomenon of ethnic entrepreneurship.
Different approaches exist in this vast corpus, but a general question guide all research in the field. How ethnic groups manage to adapt to available resources in their environment and how this adaptation varies Does different contexts and times? Many researchers work led to theories now known in the field; the first studies dating back to 1970 (Light, 1972, 1979).
First, the theories of ethnic enclave highlight the economic factors that are determinants (Portes, 1987; Portes and Bach, 1985). This concept refers to an ethnic economy that is anchored and concentrated in a specific territory. The ethnic enclave thus combines the spatial and the economic and stands out is the concept of niche that has no territorial dimension. Second, others explain the entrepreneurial phenomenon by some cultural characteristics of each group such as religion or social practices, which would be important resources. A. Middlemen theory
The theory of middlemen Minorities, meanwhile, focuses on the small minority groups who invest niches left vacant in the economic structure of the host society (Bonacich, 1973, 1977, 1980, 1987). Disadvantage theory emphasizes the role of the individual or group within the overall economic structure and examines issues of access to economic mobility ( Light, 1979).
This theory (developed by Edna Bonacich (1973) and after Blalock (1967)) which was first applied to explain entrepreneurship askhenases Jewish emigrants who lived in Central Europe as a migration temporary exile but after time uncertain, justify the confinement sectorial activities "intermediate" (particularly retail), by the fact that these are areas where entry and exit are relatively easy (initial capital modest facilities resale case back home). The project would involve return according to the authors strong solidarity intra-ethnic. "To the extent that they wish to leave, temporary residents have little reason to build lasting relationships in the host society. But they all reasons to keep alive the regional ties and ethnic differences persist in the future as they see it "(Bonacich, 1973). This decline and community causes this non-integration in general hostility net the host society which, in turn, accentuates the ethnic solidarity within the group and the desire back. The authors emphasize that this tension comes from the choice of business operated. "The resistance to assimilation that characterizes the intermediate communities in residence temporary would not be a problem if these groups were isolated economically" (Bonacich.).
However, in many cases, the desired return does not occur, either because the conditions policies of the country does not permit, either because the entrepreneurs perceive does not yet have sufficient savings to settle there as well according to the authors, "they live frugally ", saving as much as possible to achieve their ends, either paradoxically because they are victims of their success in their host countries and they are aware that they would not know the same economic success in their country.
In this case, by becoming "minority through sustainable", immigrant entrepreneurs have two possible attitudes:
-is cultivating the myth of returns and stay in ethnic lines by refusing any form assimilation,
-either give up the dream of the homeland or settle in the new country.
Edna Bonacich (1973) points out that this requires strong signals such as association membership not ethnic exogamy, the employment of people from different ethnic groups, etc… However, the authors note that in general, migrants corresponding to this ideal type attach great importance to education of their children that often leave the ethnic economy and integrate more quickly into society. B. Other theories
Finally, some authors articulate this theory with the ecological location entrepreneurship: immigrant entrepreneurs playing the role of "minority replacement "by moving to the premises or activities whose indigenous want more (Waldinger, 1990) or because the activity is considered too difficult or because the location undergoes a social regression.
A group of authors proposed in 1990 an interactive model to analyze ethnic entrepreneurship (Waldinger, Aldrich and Ward), and echoed by several model which is built from three dimensions. In this model, the opportunity structures are determined by market characteristics that promote or not products and services for members of an ethnic group, but also non-ethnic market. These opportunities also relate to the ability to entrepreneurship, which depends on the competition between ethnic groups, and public policy. Group characteristics concern the possible predisposition to entrepreneurship (culture, ambition, education, etc..), The ability of groups to mobilize existing resources, ethnic social networks, organizational capacity, and government policies that facilitate or hinder the mobilization of resources. Finally, ethnic strategies develop from the interaction between the two above factors, opportunities and characteristics of groups, according to adapt them to their environment.
More recently, work by Jan Rath and Kloosterman (2000) show the importance of "mixed incorporations" (mixed embeddedness), in understanding the phenomenon. Unlike some studies that did not envisage that ethnic entrepreneurship in terms of social links entrepreneurs with members of their group, this approach adds links to the economic and institutional structure of the host society.
It appears in many writings that the determining factor that drives ethnic groups to create their own businesses is closing on the labor market of the host society. In many cases where the opportunities for integration into the labor market are limited, so immigrants seeking to supplement the lack of access to employment for themselves as for their compatriots (Light and Gold, 2000; Doors, Haller and Guarnizo, 2002). The company becomes an ethnic alternative to regular employment often inaccessible to immigrants (Portes and Bach, 1985). Some have also highlighted the influence of the geographical context and specifically in metropolitan ethnic entrepreneurship. On the outskirts of Canadian cities for example, where employment opportunities are lower, the entrepreneurial phenomenon becomes more important (Razin and Langlois 1996). Similarly, the characteristics of each ethnic group are not to be overlooked because they play an important role in the ethnic minority entrepreneurship. These two elements of context have helped to build the concept of entrepreneurial ethnic enclave (Portes and Bach, 1985, Sanders and Nee, 1987).

V. -------------------------------------------------
ETHNIC NICHE

Instead of middleman minorities, when the return home is not immediately envisaged, (Waldinger 1990) suggest that the immigrant will adopt a strategy 'Ethnic niche'. To cope with their difficulties and possible discrimination. The most common strategy for migrants would support on "ethnic networks" and opportunities mentioned above. An "ethnic niche" or "enclave" (as Cuban enclaves in Miami analyzed by Portes and Bach (1985)) characterizes the end of process and a given geographical area, a strong ethnic homogeneity with a strong social heterogeneity. In more economic terms, by combining a form entrepreneurial immigrant ethnic community oriented and "networks hiring ethnic "(Cross and Waldinger, 1997), this phenomenon lead the development up a division of labor intra-ethnic limiting trade with the rest of the society. In both France and the United States, the practice of the enclave would be typical the insertion of the Chinese community in the host economy (Zhou, 1992)

VI. -------------------------------------------------
CONCLUSION

The analysis we made allowed us to study the operation adopted by ethnic entrepreneurs. We were able to assess the importance of factors that predispose to entrepreneurship, we also examined the strategies and resources mobilized for the project company.
In our work, we found the importance of the economy ethnicity in the sectors studied. Our analyses showed that the characteristics of entrepreneurs are generally part of an ethnic economy itself, in a diverse range of sub-sectors of economic tertiary activity. Thus, the privileged will purchase raw materials in a co-ethnic one sell to the ethnic community, geographically localized in the neighborhood and that, in a sector of economic tertiary activity. So, entrepreneurs promote more trade often than with members of their origin. And the network is formed based on ethnicity, under privileged exchanges, which reinforces the informal networks of family and friendship relations. Moreover, we noted the importance of close family and co-ethnic in the operation of the company because they are those with the most of the aid paid, often low paid and sometimes unpaid.

VII. -------------------------------------------------
REFERENCES

* BARRET,G., T. JONES and D. McEVOY (1996), ‘Ethnic minority business: theoretical discourse in Britain and North America’, Urban Studies, 33(4–5), 783–809. * BLALOCK, Hubert M. 1967. Toward a Theory of Minority-Group Relations. New York: Wiley. * BLASCHKE, J., J. Boissevain, H. Grotenberg, I. Joseph, M. Morokvasic and R. Ward (1990), ‘European trends in ethnic business’, in R.Waldinger, H. Aldrich and R.Ward (eds), Ethnic Entrepreneurs: Immigrant Business in Industrial Societies, London: Sage, pp. 79–105. * BONACICH, Edna (1973). "A Theory of Middleman Minorities", American Sociological Review, no 38: 583-594. * BONACICH, Edna. (1980). "Class Approaches to Ethnicity and Race", Insurgent Sociologist, Vol.10, no 2: 9-23. * BONACICH, Edna. (1987). "Making it in America: a Social Evaluation of the Ethics of Immigrant Entrepreneurship", Sociological Perspectives, Vol. 30, no 4: 446-466. * BOROOAH, V.K. and M. Hart (1999), ‘Factors affecting self-employment among Indian and Black Caribbean menin Britain’, Small Business Economics, 13(2), 111–29. * BOVENKERK Frank, GRAS M.J.I, RAMSODEH.D (1995) Discrimination against migrant workers and Ethnic minorities in access to employment in the Netherlands * CASTLES. S and Miller .M J. (2003) The Age of Migration: International Population Movements in the Modern World , Paperback * LIGHT, I. and S. Gold (2000), Ethnic Economies, San Diego: Academic Press.

* LIGHT, Ivan H. (1972). Ethnic Enterprise in America, Business and Welfare Among Chinese, Japanese and Blacks, University of California Press, LA, 209 pages. * LIGHT, Ivan. (1979). “Disadvantaged Minorities in Self-Employement”, International Journal of Comparative Society, Vol. 20:31- 45. * MASUREL, E., P. Nijkamp and G. Vindigni (2004), ‘Breeding places for ethnic entrepreneurs: a comparative marketing approach’, Entrepreneurship & Regional Development, 16, 77–86. * PORTES, Alejandro. (1987). “The Social Origins of the Cuban Enclave Economy of Miami”, Sociological Perspectives, Vol. 30, no 4: 340- 372. * PORTES, Alejandro. and Robert BACH (1985). Latin Journey: Cuban and Mexican Immigrants in the United States, Berkeley, University of California Press, 387 pages. * PORTES, A., L. E. Guarnizo and W. Haller. « Transnational Entrepreneurs: An Alternative Form of Immigrant Economic Adaptation », American Sociological Review, vol. 67, n° 2, 2002, p. 278-298. * RAY D., MONJAM A. et al (1988), Comparison of immigrants Armenian entrepreneurs in Los-Angeles and immigrants chinese entrepreneurs in Calgary, Faculty of Management, University of Calgary, Alberta. * RATH, J. and R. Kloosterman (2002), ‘Working on the fringes: immigrant businesses, economic integration and informal practices’, available online at http://users.fmg.uva.nl/jrath/downloads/@rath%20NUTEK.pdf.(last accessed April 26 2012 ) * RAZIN, E. (2002), ‘The economic context, embeddedness and immigrant entrepreneurs (Conclusion)’, International Journal of Entrepreneurial Behaviour & Research, 8(1/2), 162–7. * RAZIN, E. and A. LANGLOIS (1996), ‘Metropolitan characteristics and entrepreneurship among immigrants and ethnic groups in Canada’, International Migration Review, 30(3), 703–27. * RAZIN E. and I. LIGHT (1998), ‘Ethnic entrepreneurs in America’s largest metropolitan areas’, Urban Affairs Review, 33, 332–60. * SANDERS, J. and V. NEE. « Limits of Ethnic Solidarity in the Ethnic Enclave Economy », American Sociological Review, n° 52, 1987, p. 745-767 * WALDINGER, R., H. Aldrich and R. Ward (1990a), ‘Opportunities, group characteristics and strategies’, in R.Waldinger,H. Aldrich and R.Ward (eds), Ethnic Entrepreneurs: Immigrant Business in Industrial Societies,London: Sage, pp. 13–48. * WALDINGER, Roger. and al. (1990). Ethnic Entrepreneurs, Immigrant Business in Industrial Societies, Sage Series on Race and Ethnic Relations, Vol 1, USA, 226 pages. * YINGER, M.J. (1985), ‘Ethnicity’, Annual Review of Sociology, 11, 151–80 * ZHOU, M. (1992). Chinatown: The Socioeconomic Potential of an Urban Enclave, Philadelphia, Temple University Press, 316 p.

VIII. -------------------------------------------------
APPENDICE (self-reflexion)

Everywhere in the West, a growing body of research emphasize the contribution of ethnic entrepreneurs and businesses to strengthen the economy. Despite the increased interest given to them, there are very few systematic and comparative research on ethnic entrepreneurs. This reflexion is part of a larger effort aimed to better understand entrepreneurship within ethnic communities and the role of the host environment. The objective is to identify ways of thinking that can help improve public policy. Observations regarding the origins of entrepreneurial entrepreneurs, the importance of domain knowledge in connection with the discovery of business opportunities, the preponderance of use of personal and family sources for funding, the importance of the ethnic market plan sales and supply tend to confirm what is generally reported in the literature. To the extent that ethnic businesses face the same problems that SMEs in general, it seems unjustified to suggest the creation of programs created specifically for ethnic entrepreneurs. However, the particularities of social dynamics and business within ethnic communities suggest that the effectiveness of the implementation of aid programs through the use of networks established there. The success of such an intervention strategy requires a partnership to develop relationships of trust and the establishment of monitoring systems to ensure efficiency of resource allocation.
Entrepreneurship research seems driven by two approaches complementary. The first is dedicated to providing empirical analyzes of some thin dimension of the phenomenon. The second seeks to provide a comprehensive understanding of integrating multiple levels of analysis.
It is clear that ethnic groups have their own culture, their own history. Their economic realities are the fruits of their socio-cultural values accepted and taught in families and other groups of belonging. These values do not always favor business creation. Negative factors limiting development efforts, plunging whole countries into poverty.

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...University of Phoenix Material Appendix A Part I Define the following terms found in Week One and Week Two readings: |Term |Definition | |Diversity |The inclusion of different types of people of different races or cultures in a group or | | |organization. | |Ethnocentrism |The tendency to assume that one’s culture and way of life are superior to all others. | |Melting pot |Diverse racial or ethnic groups or both, forming a new creation, a new cultural entity. | |Minority group |A subordinate group whose members have significantly less control or power over their own | | |lives than do the members of a dominant or majority group. | |Emigration |Leaving a country to settle in another. | |Immigration |Immigration coming into a new country as a permanent resident. | |Culture |The shared patterns of behaviors and interactions, cognitive constructs, and affective | | ...

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