Arab American entrepreneurship in Detroit, Michigan

Abstract

PurposeThe purpose of this paper is to examine the pathways to success of Arab American entrepreneurs in the Detroit Metropolitan Area, and how Arab American businesses impact the local Detroit economy.Design/methodology/approachThe authors conducted extensive search of literature and in‐depth interviews with experts, entrepreneurs, CEOs and other senior executives of two large Arab and Chaldean community organizations. In addition, the authors also conducted site visits at community centers and the Seven Mile project in Detroit and Dearborn, Michigan.FindingsThe authors discovered several pathways to success important to Arab American entrepreneurship: start‐up capital provided by families and friends, training and education, support networks and support organizations in Detroit. In addition, some organizations, local churches and mosques have provided many essential services needed by new Arab American entrepreneurs. The authors found that the theory of middleman minority and the enclave economy theory provide very useful explanations for the phenomenon of Arab American entrepreneurship in Detroit. However, the natural business incubator model, first developed by Greene and Butler, best explains the success story of Arab American entrepreneurs in Detroit, Michigan.Originality/valueThe paper identifies some important pathways to the success of Arab entrepreneurship in Detroit, Michigan. The authors expand the natural business incubator model first developed by Greene and Butler by including the names of local organizations that play active roles in assisting Arab entrepreneurs in Detroit and Dearborn, Michigan.