A Study of Locational Distribution of Small and Large Ethnic Businesses in a Multiethnic City: Chinese in Toronto, Canada

Abstract

The study, with specific hypotheses developed from the literature on ecological perspective and the economic sociology, addresses the locational patterns of small and large ethnic businesses in a multiethnic context. Drawing from a 2001 data set of Chinese businesses collected in Toronto and 2001 Canadian census tract data, our results show that though a considerable proportion of small Chinese businesses are located in coethnic neighborhoods, close to half of them are located outside coethnic neighborhoods. Similar patterns are also found among large Chinese businesses.

Notes

1 It is possible that some businesses have not put their family members on the payroll. Subsequently, the employee number may be considerably underreported. However, it is also possible that business owners have tax incentives to put their family members on the payroll in order to reduce the business revenue reported. The earnings of their family members would be minimal so that only a limited amount of their income would be taxed. Nevertheless, the data should be interpreted with caution. The definition is line with other studies of ethnic businesses in other studies. Small ethnic businesses usually are classified as businesses with a small number, around 10, of employees. Teixeria defined small businesses as five to 15 employees (Teixeira 1998). Kim and Hurh (1985) studied businesses classified as small with the majority (over 80 percent) are less than four employees.

2 Visible minority refers to non‐white groups in Canada. The Canadian Employment Equity Act of 1986 classifies visible minorities as “persons, other than Aboriginal peoples, who are non‐Caucasian in race or non‐white in colour.”

Additional information

Notes on contributors

Eric Fong

Eric Fong is Professor at the Department of Sociology, University of Toronto.

Wenhong Chen

Wenhong Chen is Assistant Professor at the College of Communication, University of Texas at Austin.

Chiu Luk

Chiu Luk is an independent researcher.