Characteristics of Korean Immigrant Businesses Leaving Inner-City African American Neighborhoods: The Case of Chicago
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Since the 1960s, a large number of Korean immigrant businesses have thrived in inner-city African American communities; however, starting in the early 1990s, Korean business owners gradually started exiting these areas. This paper tracks these exiter-owned businesses and investigates their characteristics in view of their structural locations in the entrepreneurial market. The results of a survey of sixty-six Korean immigrant business owners in the Chicago area reveal that the market into which exiters are drawn after departing from the secondary market in inner-city African American neighborhoods is the ethnic niche market characterized by the small scale of business, high labor intensity, short duration, amorphous spatial distribution, and heavy reliance on ethnic resources. The findings suggest that exiters’ incorporation into the American economy is unfolding in a distinct manner compared to that of the Jewish merchants who left inner-city African American neighborhoods several decades before Koreans, due to changes in environmental conditions such as a prolonged economic recession and heightened intra- and inter-ethnic competition.
Abstract
Since the 1960s, a large number of Korean immigrant businesses have thrived in inner-city African American communities; however, starting in the early 1990s, Korean business owners gradually started exiting these areas. This paper tracks these exiter-owned businesses and investigates their characteristics in view of their structural locations in the entrepreneurial market. The results of a survey of sixty-six Korean immigrant business owners in the Chicago area reveal that the market into which exiters are drawn after departing from the secondary market in inner-city African American neighborhoods is the ethnic niche market characterized by the small scale of business, high labor intensity, short duration, amorphous spatial distribution, and heavy reliance on ethnic resources. The findings suggest that exiters’ incorporation into the American economy is unfolding in a distinct manner compared to that of the Jewish merchants who left inner-city African American neighborhoods several decades before Koreans, due to changes in environmental conditions such as a prolonged economic recession and heightened intra- and inter-ethnic competition.
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