EUKN - European Urban Knowledge Network - Ethnic businesses powerful to stimulate the urban economy

Ethnic businesses powerful to stimulate the urban economy

Introduction

In many cities, ethnic businesses have been able to attract increasing numbers of customers. In New York City (USA), ethnic business districts even proved to have the power to attract suburban shoppers. Whereas tax revenues used to flow out of the city into the suburbs for years, ethnic retail strips now appear to be able to establish a reverse movement. The impact of these shopping districts is therefore of major importance for the city's economy. However, the 'Centre for an Urban Future' states that city policymakers and business leaders have not yet come to recognise their potential and contribution. It therefore calls upon officials to apply strategic planning methods to these neighbourhoods.

Proposition

What positive influence can ethnic business strips have on a city's economy?
How can and should policy makers and business leaders support ethnic businesses?

Description

In New York City (USA) ethnic business districts are having an increasingly powerful impact on the city's economy. In the United States, immigrants have:

started a greater share of new businesses than native-born residents;
stimulated growth in various sectors from food manufacturing to health care;
created many new jobs;
transformed once-sleepy neighborhoods into thriving commercial
centers.

Ethnic businesses are able to attract suburban shoppers - a group of consumers thought to be long lost. However, city policy makers and business leaders still often fail to recognise this potential. In order to promote ethnic business, officials should take a more active planning approach. Especially the following challenges need increased attention:

Many of the neighbourhoods in which the ethnic retail strips are located, suffer from traffic congestions. There are not enough public parking spaces and public transportation is insufficient;
Competition from malls and emerging ethnic shopping areas in the suburbs are more convenient and less congested than their city centre counterparts. They therefore form strong competition for the ethnic business in the centre;
Ethnic shopping districts should be incorporated in the overall development plans for the city. Strategies should be developed to help ethnic businesses attract more customers. The creation of a marketing campaign should therefore be considered.
None of the ethnic retail areas have their own Business Improvement District (BID). The city might consider to apply its primary mechanism used to provide support services to neighbourhood business strips to ethnic retail as well.

Contact info

Center for an Urban Future
New York City
Phone: 001-212- 479 3341
cuf@nycfuture.org

Publication date

/11/2007

Article info
Organisation: Center for an Urban Future

Links

For more information, please visit the 'Center for an Urban Future' website

Download the Center for an Urban Future article 'Recapturing Suburban Shoppers'(PDF, Eng, 140 kB)

Download the Center for an Urban Future report 'A World of Opportunity' (PDF, Eng, 728 kB)

Document type

policy

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Specific sectors