The Role of Ethnicity in Enclave Enterprises: A Study of the Chinese Garment Factories in New York City

As part of current efforts to understand the role of ethnicity in entrepreneurship, the present study investigates the cultural/ethnic aspects of the Chinese garment factories in New York City. It was found that enclave enterprises function differently than those in the center economy. The often assumed incompatibility of traditional values, personalism, familism and informal social relations which prevail in the enclave economy are important assets for the entrepreneurial pursuits of Chinese in the ethnic enclave in New York City. The skillful use of non-economic resources is vital in the establishment of the efficient but small garment factories which are best suited for: (1) the exploitation of the opportunity structure of New York's garment industry, (2) the maximization of capital and labor resources, and (3) the neutralization of management/labor conflicts. Contrary to the claims of many social scientists that ethnic enterprises are riven by conflicts and burdened by low productivity, the present study found that ethnic enterprises are successful. A major factor for their success is that ethnic enterprises are supported by a repertory of ethnic resources. Proper management of ethnic/cultural resources is a key to the entrepreneurial pursuits of ethnic businessmen.