Small Businesses

Definition

Small businesses are privately owned enterprises that typically have a small number of employees and relatively low revenue compared to larger corporations. These businesses often serve local markets and are significant contributors to the economy, particularly in immigrant communities where they provide jobs and foster economic development.

5 Must Know Facts For Your Next Test

1. Japanese and Korean immigrants established small businesses in the United States as a means of economic survival and community building, often starting as grocery stores, restaurants, and other service-oriented ventures.
2. Small businesses created by these immigrant groups contributed significantly to the growth of their respective communities, providing employment opportunities and a sense of cultural identity.
3. Many small businesses faced discrimination and legal barriers, such as restrictive zoning laws, which made it challenging for them to thrive in certain areas.
4. Japanese-owned businesses were particularly impacted during World War II, with many being forced to close or sell their operations due to internment policies.
5. Despite the challenges, small businesses remain a vital part of the U.S. economy, with immigrant entrepreneurs often demonstrating resilience and adaptability in the face of adversity.

Review Questions

• How did small businesses established by Japanese and Korean immigrants contribute to their communities in the United States?
  • Small businesses set up by Japanese and Korean immigrants played a crucial role in fostering economic growth and cultural identity within their communities. These enterprises not only provided essential goods and services but also created jobs for community members, thereby improving local economies. Additionally, they served as cultural hubs where individuals could connect with their heritage and support one another, strengthening community ties.
• Discuss the challenges faced by small businesses owned by Japanese and Korean immigrants during their establishment in the U.S. market.
  • Small businesses owned by Japanese and Korean immigrants encountered numerous obstacles, including discrimination, legal restrictions, and financial limitations. Many immigrants faced xenophobia that hindered their ability to secure loans or permits necessary for starting a business. Furthermore, restrictive zoning laws often targeted these businesses unfairly, limiting their operations and growth potential. These challenges created an uphill battle for many small business owners striving for success in their new environment.
• Evaluate the long-term impact of small businesses founded by Japanese and Korean immigrants on the broader economic landscape of the United States.
  • The small businesses founded by Japanese and Korean immigrants have had a lasting impact on the U.S. economy by contributing to job creation, innovation, and cultural diversity. Over time, these enterprises have not only provided essential services but have also influenced consumer preferences and industry standards within their sectors. As they evolved, they helped pave the way for future generations of immigrant entrepreneurs, fostering a more inclusive economic environment. Their resilience serves as a testament to the entrepreneurial spirit that continues to shape America's diverse economic landscape.

Related terms

Entrepreneurship: The process of starting and operating a new business venture, often characterized by innovation and risk-taking.

Cultural Economy: An economic system that emphasizes the importance of cultural resources, values, and community engagement in driving local economic development.

Immigrant Business Networks: Support systems formed by immigrants that help new business owners navigate challenges and access resources in their local economies.