Ethnic minority small business: A comparative analysis of restaurants in Denver

Significant ethnic minority business growth has occurred in the United States in the post-World War II period. The self-employment pattern of ethnic minority business, particularly the success of Asian-immigrant small business, is currently explained by two different hypotheses: the social resources explanation and the class resources explanation. While the former approach attributes the large number of small business enterprises and their success to the existence of such social resources as rotating credit associations, a protected market, and a labor source within Asian American communities, the latter argues that success instead is caused by greater investment of human and financial capital by these immigrants. The present study compares the self-employment pattern of the restaurant industry operated by African Americans and immigrant Chinese in Denver. Contrasts and similarities in ownership characteristics, start-up capital, location, social networks, and economic significance prompted this study to conclude that alone neither explanation is satisfactory and more empirical studies are needed.