Market Potential as a Decisive Influence on the Performance of Ethnic Minority Business

Abstract

The processes affecting the market demand for ethnicentrepreneurs interact with factors affecting their supply.Drawing ontheir own research on South Asian-origin entrepreneurs in Britain and Canadaand on African-Caribbean businesses in Britain, the authors consider threetypes of "market niches" that changing patterns of supply and demandhave created for ethnic enterprise.A study of ethnic niches reveals thatethnic entrepreneurs must break out beyond the local ethnic space in order togrow and to diversify.An examination of niches arising from changes inconsumer demand patterns suggests that lifestyle changes and consumerpreferences have led to the proliferation of ethnic retail firms and servicespromising convenience, flexibility, and user-friendliness.The shift frommass production to flexible production, as well as the decentralization ofownership, has created a niche for ethnic businesses, particularly clothing andtextile firms.An alternative method of classifying ethnic business marketpotential involves four hypothetical market spaces, including local ethnic,local non-ethnic, ethnic non-local, and non-ethnic non-local spaces.(SAA)

Keywords: South Asians, African Caribbeans, Minority firms, Firm growth, Textile industry, Firm diversification, Clothing industry, Retail industry, Niche markets