Community Resources and Opportunities in Ethnic Economies: A Case Study of Portuguese and Black Entrepreneurs in Toronto

Abstract

Relatively few attempts have been made by geographers in Canada to study the structure and development of ethnic entrepreneurship among immigrant groups, and particularly among visible minorities. The purpose of this study is to examine the behaviour, strategies and barriers faced by owners of ethnic businesses in order to evaluate how race and ethnicity impact upon entrepreneurship. In particular, the study aims at investigating whether intergroup differences exist with respect to the utilisation of group resources (such as family, friends, and community support/ties) and how these resources contribute to the formation, maintenance and success of Portuguese- and Black-owned businesses. Data were obtained from a questionnaire survey that was administered to Portuguese and Black entrepreneurs in the Toronto CMA. The evidence indicates that Portuguese differ significantly from Black entrepreneurs in that they rely more often on their community ('ethnic') resources. However, Black entrepreneurs encountered more barriers in starting and/or operating their current business, particularly in obtaining credit/loans from financial institutions and banks. Nonetheless, despite such barriers, Black entrepreneurs are more optimistic than the Portuguese with respect to the future of their businesses. The 'demographic revolution' that is taking place in Canada, and particularly in Toronto—with the arrival of important contingents of visible minorities—is pointed to by Black entrepreneurs as one of the major reasons for their optimism regarding the growth of Black entrepreneurship in Toronto.