Socio-economic and policy dimensions of the mixed embeddedness of ethnic minority business in Britain

Abstract

Ethnic minority businesses in Britain are examined in relation to the concept of mixed embeddedness. Earlier intellectual approaches emphasising cultural factors, urban and economic contexts, and public policy are identified. Ethnic minority businesses are shown to be typically small, to compete in saturated spatial markets and to be concentrated in economically vulnerable sectors. Moreover their fragile position has been further destabilised by the effects of government policy. Special attention is given to the repeal of the Shops Act, which limited the opening hours of shops. We conclude that an unintended outcome was the entry of large-scale chains into the formerly protected niches of South Asian-owned businesses. This represents a catastrophic occurrence for some ethnic minority firms. Meanwhile, public policy related to enterprise support and the regeneration of the urban fabric has been largely ineffective in the arena of ethnic minority business. The whole picture is complicated by generational differences in minority communities and by continuing restrictions on immigration.