Role of Ethnic Economy in Local Development. A Case Study: German Economic Society Brasov

• Author: Sandru, C.
• Position: Faculty of Sociology and Communication, Transilvania University of Brasov
• Pages: 185-192

Bulletin of the Transilvania University of Braşov

Series VII: Social Sciences • Law • Vol. 6 (55) No. 2 - 2013

ROLE OF ETHNIC ECONOMY IN LOCAL

DEVELOPMENT. A CASE STUDY:

GERMAN ECONOMIC SOCIETY

BRAŞOV

Codrina ŞANDRU1

Abstract: Ethnic economy is an important phenomenon for current

sociological research as it allows our identifying several forms of solidarity

in business, based on a common ethnic-cultural identity. The main

sociological concepts used in this research field are ethnic entrepreneurship

and ethnic enclave, the latest studies being especially focused on the

immigrants’ economic life. The present paper submits a case study on the

German Economic Society of Braşov and provides an insight into this ethnic

criterion-based business association and into its contribution to the local

socio-economic development.

Key words: ethnic economy, ethnic entrepreneurship, ethnic enclave, local

development.

1 Faculty of Sociology and Communication, Transilvania University of Brasov.

1. Introduction

The phenomenon called ethnic economy

was first theorised by Ivan H. Light (1972)

in his study on economic-life organization

and business development within the groups

of Chinese, Japanese immigrants and the

dark-skinned persons from America. A few

years later, Bonanich and Modell (1980)

went thoroughly into the relation between

social class and ethn icity in the case of the

Japanese community from America,

proving that ethnic solidarity is an

important factor for the success of small

businesses. For two decades, the concept of

ethnic economy has been developed in a

direction covering complex socio-economic

realities. Light and Karageorgis (1994)

defined ethnic economy this way: “the

ethnic self-employed and employers, their

unpaid family workers, and their co-ethnic

employees” (Light and Karageorgis, 1994

apud Light, 2005: 650). Subsequently, Light

(2005) refined the meaning of this concept,

showing that one may envisage two

dimensions of ethnic economy: the ethnic-

controlled economy and the ethnic

ownership economy. The ethnic ownership

economy refers to the owners/businessmen

with a certain ethnic identity who act on a

distinct labour market. The ethnic-

controlled economy appears where the

members of a certain ethnic group, as

employees, represent a significant

workforce, which is due either to their high

number or to their organization (example:

the case of a union mainly consisting of

employees of a certain ethnic origin, who

influence the employment and wage policy

to the employees’ benefit).