Running an Ethnic Business

From The Peopling of New York City

Customers walking along the street on a typical afternoon in Jackson Heights. The Sari Palace in the background is a popular clothing shop which specializes in wedding garments. This store attracts both South Asian and non-South Asian customers.

A street view of Jackson Heights depicting many of the stores found in this business district. The stores are tightly placed together, a common theme of this area. The stacked or dual-businesses are also visible, making this area even more dense.

"In many cases we speak the same language, we share similar experiences, and even have similar taste. It also adds a factor of trust, because it is easier to communicate. Even more, the length at which we have been shopping here we know many store owners personally."

Male Shopper in Jackson Heights

"Because of their common origins, a sense of trust is created between these people, which leads to a good business chemistry. I know several owners who say their shop benefits from sharing customers with their close neighbors."

Owner of Alankar Jewelers

"As an immigrant myself and part of a large community; this field of law is an extremely important issue in the political climate. Advocates who are passionate are necessary and a commodity for all sides of the argument."

Maryanne Tharappel

"An ethnic economy, a labor market structure that enables immigrants to procure employment through ethnic group membership." (Bubinas, 2008, 195)

At the heart of the Jackson Heights South Asian community is the ethnic business district. The business district consists of the stores primarily on 73rd, 74th, and 75th Streets between 37th Avenue and 37th Road. Like other business districts, there are various types of stores that cater to the many specialized needs of this ethnic community. As a result, many of the goods found here many seem foreign to most Americans, but are a “taste of home” to the South Asian community. For example, one of the largest supermarkets in the area, Patel Brothers, is not a traditional American supermarket. Instead, it supplies South Asian spices and produce, the same produce consumers would find back at home in Bangladesh, India, Pakistan, Nepal, or Tibet. Other types of stores represented in the area include restaurants, music stores, jewelers, clothing stores, electronics stores, and hair dressers. The various stores represent the assorted needs of any community and specifically the South Asian constituents.

Types of Businesses in Jackson Heights

The majority of stores in Jackson Heights are owned and operated by South Asians. As a result, many owners feel more comfortable hiring South Asians employees. This co-ethnic hiring is a direct result of the loyalty, trust, and comfort that the South Asian customer base feels while shopping in this area. Co-ethnic employees bring cultural capital, personal assets that are not monetarily based such as language skills, knowledge of merchandise, and expertise of the latest South Asian popular culture. This helps to create some of the uniquely South Asian business practices of the area. However, because the employers and employees are of the same ethnic community, abuse occurs in many instances. Employers do not provide adequate working conditions and salaries are sometimes not paid at all.

All these various aspects of the unique business culture and practices of Jackson Heights are singular to this South Asian business district. We will compare the traditional American business model with the modified version found in an ethnic community like Jackson Heights. Remarkably, many stores in Jackson Heights are able to sustain success while ignoring what Americans consider the basic principles of business. Multiple stores share one physical location; similar types of businesses are juxtaposed. This is intriguing. How does it work? Nonetheless, these unusual business settings are not detrimental to the community.

Within this business model, dual businesses are common. A dual business arises when two or more businesses share a working space, with one subletting to another. Merchants say this practice increases the customer base while simultaneously saving money on rent and increasing the profits of both stores. The working conditions of the many immigrant workers in these stores are another aspect of an ethnic economy. They are able to gain access to employment through their cultural capital, and shared ethnicity with employers, but often suffer from very low wages, very long hours, and lack of benefits. However, they are able to obtain employment and financial start-up, and these benefits have more bearing than the exploitation they suffer. We also examine the prevalence of co-ethnic professionals in the area and why these professionals chose to return to the ethnic community.

A closer look at the stacked businesses which are prevalent throughout this business district. By utilizing all resources available, store owners are able to save money on monthly payments towards renting or leasing. They are also able to develop mutually beneficial relationships in which shop owners share customers, leading to increased profits

Subzi Mandi, a popular grocery store in Jackson Heights offers a wide assortment of produce and spices geared towards South Asian cooking. Ethnic food and produce are a large facet of an ethnic economy and the prevalence of grocery stores such as this portray their importance

This page was done by Suleman Ilyas and Stephanie Fox.