Ana Espinosa Seguí. Human Geography Department. University of Alicante (Spanien)

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1 Ana Espinosa Seguí Human Geography Department University of Alicante (Spanien) Photography taken by Ana Espinosa Seguí in Brussels, 2007

2 MAIN POINTS OF DISCUSSION 0.- What is ethnic? 1.- What is ethnic economy? 2.- How is it established? 3.- Which agents participate in the ethnic economy? 4.- Is ethnic economy important for social integration?

3 1.- What is ethnic economy? - Ethnic economy is perceived as an alternative avenue of economic attainment (success) among immigrants through their ethnic resources and ties (Fong & Ooka, 2000) - According to Bonacich, Modell and Light, ethnic economy includes any (ECONOMIC ACTIVITY TAKEN BY ANY) immigrant or ethnic group s selfemployed, employers and coethnic employees - Economy control - Employment network control

4 What is ethnic economy? Geography Sociology Economy

5 2.- How is established? Sociocultural Entrepreneurial Institutional Economic Territorial BASIS Try to find at least one explanation for each of these reasons

6 Source: (Accessed 01/03/2011)

7 Foreigners Extranjeros 25,5 24,9 Germans Alemanes 9,7 9,4 Women Mujeres 11,2 11,1 Men Hombres Global population Total de la población 11,3 10,7 11,2 10, (%) Source: (Accessed 01/03/2011)

8 Which agents are participating in the ethnic economy? Try to make a list of agents with your partners and analyse their roles 5 minutes

9 Which agents are participating in the ethnic economy? Entrepreneurs Consumers Retail environment or competitors Territory

10 Which agents are participating in the ethnic economy? - Ethnic entrepreneurs are simultaneosuly owners, managers or operators of their own businesses. - They belong to groups that have a common cultural heritage and/or origin. - Two main kinds of ethnic entrepreneurs can be distinguished: a)middleman minority entrepreneurs b)ethnic enclave entrepreneurs. (Zhou,2007)

11 Which agents are participating in the ethnic economy? a) Middleman minority entrepreneurs - Those who trade in between a society s elite and the masses - Before settling definitely down, they used to travel between the host country and their country of origin in order to make businesses - They can be included in the host society s mainstream economy - Usually, their businesses are not located in not coethnic communities - Few ties to the social structures and social relationships of these local communities (Zhou,2007)

12 Which agents are participating in the ethnic economy? b) Ethnic enclave entrepreneurs - Entrepreneurs bounded by ethnicity, ethnic community s social structures and a geographical location - These businesses were born as a answer for satisfying coethnics demands - Businessmen can belong to ethnic enclaves, but also to the middlemen minorities (Zhou,2007)

13 Some ethnic enclaves can be denatured Source:

14 - Social capital refers to the networks of social relations that may provide individuals and groups with access to resources and supports (Jeannotte, 2008) - Market niches not used by retailers who belong to the host society (Portes y Sensebrenner, 1993) - The reception in a new country is always easier if immigrants are helped by other immigrants with more know-how

15 IMMIGRANT NETS (Staring, 2000) Strong links Weak links (Family and close friends) (Colleagues and friends) Funding and work Information about the market Low cost labour Information and Know-how PROVIDE Friendly help Customers and suppliers Business school

16 ETHNIC RESOURCES Cultural resources: religion, language, social and moral values and entrepreneurial predisposition Material resources Information: advices and orientation Experience: formation

17 Which agents are participating in the ethnic economy? Who are the main consumers of these ethnic businesses? - Connationals consumers - Transumers - Consumers from the host society

18 Which agents are participating in the ethnic economy? - The institutional structure of each country or region will influence ethnic economy - The territory can provoke three main processes: a) INVASION SUCESSION b) VACANCY CHAIN c) SYNERGY

19 Which agents are participating in the ethnic economy? - Depending on the offer of other retailers, the area will create a synergy or will show two circuits of businesses. - The biggest will be the offer of ethnic business, the densest will be the relationships between businessmen and consumers

20 What is Social Integration for you? Could you prepare a definition? (in groups) How is possible to achieve this social integration of immigrant population?

21 What is Social Integration? The stability of relationships between parts of a socia system The process that links, improve and maintain together different elements, creating a new structure Definition of Fundación Europea para la Mejora de las Condiciones de Vida y de Trabajo

22 - Fong, E. y Ooka, E. (2000): The social consequences of participating in the ethnic economy. The International migration review, vol. 36, nº 1, pp HILLMANN, F. (2006): Gendered landscapes of ethnic economies: Turkish entrepreneurs in Berlin, in Landscapes of the ethnic economy, ed. David Kaplan and Wei Li, Rowman & Littlefield publishers, Inc, 192 pp. - KAPLAN, D. y LI, W. (2006): Introduction: the places of ethnic economies. En David Kaplan y Wei Li (ed.). Landscapes of the ethnic economy, Rowman & Littlefield publishers, pp. - KLOOSTERMAN, R., VAN DER LEUN, J. y RATH, J. (1999): Mixed embededdeness, (in)formal economic activities and inmigrant businesses in the Netherlands. International Journal of Urban and Regional Research, n 23, pp KLOOSTERMAN, R., VAN DER LEUN, J. y RATH, J. (2001): Immigrant entrepreneurs in advanced economies, mixed embeddedness further explored. Journal of Ethnic and Migration Studies, n 27, pp PORTES, A. y SENSEBRENNER, J. (1993): Embeddedness and migration: notes in the social determinants of economic action. The American Journal of Sociology, nº 98, pp

23 -PORTES, A. (1995): ``Economic sociology and the sociology of immigration: a conceptual overview, in Alejandro Portes (editor): The Economic Sociology of Immigration: Essays on Networks, Ethnicity and Entrepreneurship, Russell Sage Foundation. - PORTES, A. (1998): Social Capital: Its Origins and Applications in Modern Sociology, Annual Review of Sociology, Vol. 24. (1998), pp STARING, R. (2000): Flows of people: globalization, migration and transnational communities in The ends of Globalisation: bringing society back, ed. Don Kalb, Marco Van der Land, Richard Staring, Bart Van Steenbergen y Nico Wilterdink, Lanham, Rowman and Littlefield, pp VOLERY, T. (2007): Ethnic entrepreneurship: a theoretical framework. En Leo Paul Dana (ed.). Handbook of research on ethnic minority entrepreneurship, Edward Elgar Publishing Limited, pp WALDINGER, R. (1984): Immigrant enterprise in the New York garment industry. Social Problems, n 32, pp WILPERT, C. (2003): Germany: from workers to entrepreneurs en Immigrant entrepreneurs: venturing abroad in the age of globalization. In Robert Kloosterman y Jan Rath (ed.), Berg Publishers, chapter WOOLCOCK, M. (1998): Social capital and economic development: toward a theoretical synthesis and policy framework. Theory and Society, vol. 27, pp

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