Ethnic Entrepreneurship: A Qualitative Study on Entrepreneurial Tendency of Meskhetian Turks Living in the USA in the Context of the Interactive Model

1 Introduction

“How immigrant entrepreneurs are revitalizing Dayton” ^[1]

“One Ohio City’s Growth Strategy? Immigrants” ^[2]

“Ailing Midwestern Cities Extend a Welcoming Hand to Immigrants” ^[3]

“Dayton named one of the nation’s top 7 enterprising cities” ^[4]

– News headlines from the National and Local Press in the USA

People who had to leave the lands where they were born, raised and lived for various reasons, either earn money by working in paid jobs or decide to establish their own business in order to continue their lives in the country they go to and to provide for their family. In the literature, ethnic entrepreneurship is defined in the simplest form as the entrepreneurial activities of those with ethnic identity by establishing their own businesses. Information about the entrepreneurial processes of Meskhetian Turks, who were exposed to various discriminations and troubles more than once and immigrated from their homeland, first to Uzbekistan, then to Russia, and finally to the United States in 2004 with a special law, will be provided in this study.

The studies concerning migrants and ethnic entrepreneurs were The Notion of Class and Ethnic Resources by Ivan Light, The Concept of Intermediary Minority by Edna Bonacich, the argument by Alejandro Portes on the establishment of “ethnic settlements” in the 1970s, and John Modell and Howard Aldrich published similar studies. Roger Waldinger added to these studies in the 1970s and 1980s, and these researchers collaborated on ethnic entrepreneurship in the 1990s (Fregetto, 2004, p. 166; Waldinger, 1989, p. 49). Ethnic entrepreneurship is absolutely not a novel phenomenon for our modern society; however, potential entrepreneurs are the consequence of migration flows, sometimes for economic reasons and sometimes for reasons stimulated by foreign actors such as war, suppression, and natural famine disasters (Masurel et al., 2004, p. 78). Ethnic entrepreneurs often immigrated from less developed to more developed countries, particularly to attractive demographic areas in cities (Waldinger, 1989).

Researchers developed and used various theories and models to explain the concept of ethnic entrepreneurship (Fregetto, 2004). It is seen that some theories/perspectives combine the social, cultural, and economic factors to explain ethnic entrepreneurship. These theories are mixed embeddedness by Light (1988), interactional model by Waldinger et al. (1990), blocked mobility perspective by Gold and Kibria (1993), (ethnic) social capital perspective by Sanders and Nee (1996), women entrepreneurship/gender differences by Baycan-Levent et al. (2003), and ethnic diversity by Smallbone et al. (2010). These theories explain that the purpose of ethnic groups in establishing a business is to survive in society by increasing their social mobility and obtaining better economic conditions (Indarti et al., 2021, p. 438).

Entrepreneurs are one of the important factors that contribute to change within a dynamic society with globalization in modern economic life (Ma et al., 2013; Ratten, 2023). Entrepreneurship is a phenomenon that encourages the creativity, initiative, and freedom of individuals who can take risks and utilize dynamic and complex opportunities in the context of uncertainty (Ramadani et al., 2014) by bringing together the factors of production to contribute to economic growth and maximize profits (Mickiewicz et al., 2019). In a classic saying, entrepreneurship is combining resources in new ways to create something of value (Aldrich & Waldinger, 1990, p. 112). Ethnic entrepreneurship is defined as “a set of connections and organized interaction models established among people who share a common national background and migration experiences” (Waldinger et al., 1990, p. 3). In this sense, an ethnic entrepreneur can be defined as the owner of a company that carries out business by encouraging solidarity, trust, flexibility, and personal motivation (Chaganti & Greene, 2002) under the same roof with a social group of common origin based on relative cultural similarity.

Ethnic entrepreneurship refers mainly to small and medium-sized business activities carried out by entrepreneurs of a particular sociocultural or ethnic origin and tends to be an indigenous and important part of the local economy (Masurel et al., 2001, p. 2). Ethnic entrepreneurs create employment and economic opportunities for their own communities through their businesses. In addition, ethnic entrepreneurs support cultural diversity by promoting the relationship between different cultures and economic affairs. This has a positive effect on economic growth and development in general. The numerical data on ethnic entrepreneurs’ contribution to the economy vary for each country. According to a study conducted in the United States in 2020, the total turnover of businesses by ethnic entrepreneurs exceeded $1.2 trillion, and the number of ethnic businesses in the United States corresponds to approximately 15% of all businesses (U.S. Census Bureau, 2020). The total turnover of ethnic businesses in the UK in 2019 was recorded as £36.5 billion, and the number of ethnic entrepreneurs in the UK in the same year accounted for around 9% of all businesses (British Business Bank, 2019). In Turkey, according to data from 2019, the share of ethnic-origin businesses in total number of businesses is 4.4%, and the employment rate of those businesses is 6.2% (Turkish Statistical Institute). The studies conducted in various countries indicate that the contribution of ethnic entrepreneurship to the economy is important. However, beyond financial data, factors such as employment generation, local economic development, and social integration should be considered in the contribution of ethnic entrepreneurs to the economy.

Ethnic entrepreneurship is a complex and multi-dimensional phenomenon that impacts various communities in different regions (Guerra-Fernandes et al., 2022, p. 397). Ethnic entrepreneurs are business owners who focus on their ethnic groups and often specialize in a particular industry (Sowell, 1981). It is seen that some ethnic groups have higher business establishment rates than others, especially among first- and second-generation migrants (Aldrich & Waldinger, 1990, p. 113). Portes (1995) emphasizes that the economic activities of ethnic entrepreneurs are important for social and economic development. The success of ethnic entrepreneurs depends on both their personal abilities and the quality of the social and cultural networks within their community. In this sense, ethnic entrepreneurs contribute to the economic development of both their ethnic groups and society (Light & Rosenstein, 1995; Sowell, 1981). Considering the discussions on ethnic enterprises, three different approaches can be suggested for defining the resources of ethnic entrepreneurship success; first are the traits that migrants bring with them and that predispose them to carry out good business; the second is the importance of opportunity structure as a prerequisite for business success; third are ethnic strategies that emphasize the interaction between newcomers’ opportunities and ethnic group characteristics (Waldinger, 1989, p. 49). In this sense, it is important to focus on social, structural, and cultural conditions, as higher levels of entrepreneurship cannot only be explained by the personal characteristics of the owners (Aldrich & Waldinger, 1990, p. 113).

Mixed embeddedness and the interactional model are two concepts that offer different perspectives in explaining ethnic entrepreneurship. The first person to use and explain the concept of mixed embeddedness was Ivan Light. To explore ethnic entrepreneurship, Light introduced the concept of mixed embeddedness in a study published in 1984 titled Immigrant Entrepreneurs: Koreans in Los Angeles, 1965–1982. In this study, it is emphasized that ethnic entrepreneurs are embedded both in their ethnic communities and in the surrounding society, and this mixed embeddedness shapes ethnic entrepreneurial activities. The interactional model is one of the main approaches used to explain the entrepreneurial success of an ethnic group, and it was based on a study titled Structural Opportunity or Ethnic Advantage? Immigrant Business Development in New York by Waldinger (1989). Later, it was developed with a study titled Ethnic Entrepreneurs: Immigrant Business in Industrial Societies by Waldinger et al. (1990). This approach explains the road map that an ethnic group follows in business development. Accordingly, it is said that there is not one single feature responsible for the entrepreneurial success of ethnic entrepreneurs; moreover, success pertains to the interaction between the opportunity structure and ethnic group characteristics.

Mixed embeddedness model is a theoretical approach that is used to explain and determine ethnic entrepreneurship in the social sciences (Kloosterman & Rath, 2001; Portes & Sensenbrenner, 1993; Rath, 2001; Rath & Kloosterman, 2002; Ram et al., 2017). This model argues that ethnic entrepreneurship does not arise solely from individual or environmental factors, but occurs as a result of the interaction of these factors. Mixed embeddedness suggests there are three main factors that determine ethnic entrepreneurship: ethnic networks, institutional environment, and the personal characteristics of entrepreneurs. These factors interact with each other and have a decisive effect on the nature and success of ethnic entrepreneurship. Ethnic networks refer to the families, friends, colleagues, and other social relationships of ethnic entrepreneurs. These networks provide entrepreneurs with business ideas, resources, customers, and markets. Institutional environment refers to external factors that directly or indirectly affect the business activities of ethnic entrepreneurs such as judicial, political, and economic institutions. Personal characteristics of entrepreneurs include factors such as abilities, skills, education, experience, motivation, and cultural identity.

Waldinger’s interactional model suggests that environmental factors as well as the characteristics of ethnic groups have an effect on the development of ethnic entrepreneurship. According to this model, the success of ethnic entrepreneurs depends on both the characteristics of their ethnic groups (e.g., cultural capital, social networks, language skills, etc.) and environmental factors (e.g., market conditions, government policies, legal regulations, economic situation, etc.). Waldinger’s interactional model addresses three main components of ethnic entrepreneurship: ethnic group characteristics, individual entrepreneurial characteristics, and entrepreneurial opportunities. In the interactional model, Waldinger emphasizes that the harmony between these components is important for the success of ethnic entrepreneurship. Ethnic entrepreneurs develop their personal entrepreneurial characteristics by using the resources and support from their ethnic groups. When entrepreneurial opportunities are combined with ethnic group characteristics and the conditions provided by the economic environment, ethnic strategies are formed and this increases the success of ethnic entrepreneurship.

There are some nuanced differences between these two concepts. Mixed embeddedness emphasizes ethnic networks as an important factor that affects ethnic entrepreneurship. Ethnic networks usually aspire to solidarity and mutual benefit within the ethnic group, such as solidarity, support, and resource sharing. These resources include the resources that people within ethnic groups share with each other, such as business opportunities, financial support, knowledge, and experience. Interactional model suggests that social capital plays a notable role in ethnic entrepreneurship. Social capital includes elements such as social networks, contacts, connections, and access to individuals’ social resources. Mixed embeddedness discusses the institutional environment as another factor that affects ethnic entrepreneurship. Institutional environment includes judicial, political, and economic factors and analyzes the external factors that affect entrepreneurs’ business activities. Interactional model emphasizes that entrepreneurial activities are shaped as a result of the interaction of individuals’ ethnic identity and social capital with the economic environment. Mixed embeddedness considers how the personal characteristics of entrepreneurs affect ethnic entrepreneurship. However, interactional model emphasizes that individuals’ ethnic identity, comprised of ethnic belonging, cultural values, language, and traditions, may shape entrepreneurial actions.

These analytical approaches represent the frameworks used to explore the different factors and relationships of ethnic entrepreneurship. While the mixed embeddedness approach offers a more comprehensive perspective, interactional model provides a more specific focus and emphasizes the interaction of individual factors. Both approaches are important theoretical instruments to explain the phenomenon of ethnic entrepreneurship. However, interactional model is preferred in this study because Meskhetian entrepreneurs establish social and cultural relationships with family members left in the country they came from; however, they also establish commercial relationships with local networks in the country they migrated to for reasons such as physical distance, cost, and quality. It is also seen that Meskhetian Turks, who initially established their own businesses, especially in the logistics sector, learned about the business from the experience of Russian and Bosnian friends, from different ethnic origins (taking advantage of language and religion similarity), who shared the establishment and operations process and knowledge acquisition to get them started. In other words, social capital plays a remarkable role. Moreover, the Meskhetian Turks then taught the business to close family members, relatives, and friends from the same ethnic origin after they established their businesses and supported them to establish their own businesses; namely, they benefited from ethnic networks as an ethnic business strategy for the future.

In light of that data, the following research questions are discussed in this study:

1. How do personal characteristics, such as motivation, willingness to take a risk, and self-sufficiency, interact with the cultural, social, and economic factors and shape the entrepreneurial tendencies of individuals from different ethnic backgrounds?

2. What are the economic opportunities or challenges that affect the entrepreneurial tendencies of individuals from different ethnic backgrounds?

3. What are the social network and social resource factors that support or prevent the entrepreneurial activities of individuals from different ethnic origins?

Adopting and developing policies that promote ethnic entrepreneurship by local governments plays a remarkable role in increasing entrepreneurship and achieving significant economic, social, and cultural gains for the regions benefiting from ethnic entrepreneurs. In addition, the fact that local governments determine what works by evaluating the effect and effectiveness of the gains from ethnic entrepreneurs for the region and then share that information with the public will provide significant support to better benefit from the entrepreneurial skills or entrepreneurial spirit of hundreds of communities in the USA.

In conclusion, this study offers a framework that specifically discusses ethnic entrepreneurship and analyzes the business opportunities and resources of immigrant communities. In this context, this study indicates that the interaction of ethnic entrepreneurs with local communities, the role of entrepreneurs in local economic development, the opportunity structure of business establishment motivation and growth potentials, and the ethnic and non-ethnic social networks that emerge from the interaction of group characteristics are important.

The course of this study can be outlined as follows: The existing literature was reviewed by addressing the discussions within the framework of conceptual and methodological issues related to ethnic entrepreneurship. In this context, a basic literature review on ethnic entrepreneurship was carried out, and the role of ethnic entrepreneurs and local governments in a region’s economy was included. Afterward, a theoretical framework on the interactional model is presented, which explains what plays a role in the business success of ethnic entrepreneurs in a social, cultural, and economic context. Information about the method of the study and sampling is shared in the methodology section. In the findings section, the obtained findings from in-depth interviews, a qualitative technique, with Meskhetian Turk entrepreneurs operating in Dayton are discussed within the context of the interactional model. Lastly, discussion and conclusions are provided.

2 Role of Ethnic Entrepreneurs and Local Governments in Revival of a City or Region

It is seen in most of the studies on ethnic entrepreneurship that ethnic entrepreneurs are highly important for the revival, renewal, and change of a city or region. It is also indicated that adopting plans and programs to support ethnic entrepreneurs in their local institutions is extremely important for the revival of the local economy. In the city of Dayton, Ohio, USA, where the sample of this study is located, the Dayton City Commission adopted a new “immigrant friendly” plan to attract immigrants and encourage those who are here to prevent job losses and population decline after the industrial recession and to revive the economy and spirit of the city: “WELCOME DAYTON.”

“Welcome Dayton” is an integration initiative and a program established to encourage the adaptation and integration of the local community, immigrants, and refugees in Dayton. The “Welcome Dayton” program aspires to create and support a culture of coexistence based on the successful integration of immigrants, refugees, and local communities, emphasizing that Dayton is a city of people with diverse cultural, economic, and social ethnic backgrounds. The program includes activities such as providing services for immigrants and refugees; increasing the cooperation and communication between local governments, institutions, and communities; reducing the difficulties that immigrants and refugees experience; and inspiring the entire community to celebrate this cultural richness (https://www.daytonohio.gov/998/Welcome-Dayton). Similarly, the Organization for Economic Cooperation and Development (OECD, 2021) discusses how public policies and programs may support inclusive entrepreneurship in its report titled The Missing Entrepreneurs 2021. The report discusses reducing disincentives for business establishment; facilitating access to finance; development of immigrants’ entrepreneurial skills through training, coaching, and mentoring; strengthening entrepreneurial culture and networks for target groups; and aggregating strategies and actions for inclusive entrepreneurship accordingly.

Immigrants and refugees may know a craft or how to trade very well, but they may not be familiar with business establishment processes such as registering the business and concluding contracts when starting a business in the country of immigration, related regulations, the business permission process, and local regulations that may affect a particular type of business. In addition, they may not have a credit history, which prevents them to gaining access to capital. These barriers are combined with linguistic and cultural differences. In this sense, the purpose of the Welcome Dayton plan is to “identify and support a strategic neighborhood business district as a center for immigrant businesses desiring to collocate in a commercial or industrial node.” The plan also aspires to “help ease the burdens/reduce the barriers for anyone who wants to open new businesses in the city serving whomever or wherever. Regarding access to capital, the Welcome Dayton committee has a group focused on small businesses and economic development that, among other things, is concerned with ensuring that people have access to small loans, primarily less than $50,000. Welcome Dayton is encouraging other municipalities and counties in the region to adopt similar welcoming policies, as well as encouraging local governments to adopt more immigrant-friendly policies generally” (American Immigration Council Special Report, 2016). Dayton’s entrepreneurial spirit garnered national recognition, and the US Chamber of Commerce listed the city as one of the top seven business-friendly “entrepreneur cities.”

In addition to the policies by local governments that encourage entrepreneurship, the opportunity to have cheaper housing and the positive attitude of the local people towards immigrants increased the recognition of Dayton. Therefore, ethnic businesses established here, over time, accelerated the region’s population growth and also filled critical labor gaps. According to a New American Economy study, immigrants contributed $1.9 billion to Montgomery County’s (regional municipality mostly inhabited by Meskhetian Turks) economy in 2019, with more than $75 million paid in state and local taxes. The report also estimates that immigrants living in the county had helped create or preserve 1,200 manufacturing jobs that would have otherwise vanished or moved elsewhere by 2019. The report cites similar positives in the entrepreneurial field, estimating that there are 1,100 foreign-born entrepreneurs generating close to $40 million in business income in Montgomery County. Despite making up 4.8% of the population, immigrants made up 7.1% of the business owners in the county in 2019 (American Immigration Council Report, 2016). The success of the entrepreneurial Meskhetian Turks in their enterprises is also an important element of this situation.

In conclusion, businesses owned by ethnic entrepreneurs are important for local economies and provide economic cooperation and cultural diversity among different communities. Local governments that understand the benefit of ethnic entrepreneurs prepare detailed plans/programs for the establishment of ethnic businesses and even play a key role in promoting entrepreneurship by encouraging other local governments in the region to adopt similar policies. In addition, ethnic entrepreneurs are one of the best supporters of the regional economy in terms of attracting foreign investment and pumping their own cash into the local economy through the businesses they establish.

3 An Approach to Explain Ethnic Entrepreneurship: The Interactional Model

The studies on ethnic enterprise emerged in the United States in the last century as part of an attempt to explain historical differences in business activities among African-Americans, Hispanics, and Asians, and it was seen that a mutual interaction played a significant role, especially between the opportunity structure and the characteristics of a group (Waldinger, 1989, p. 48; Waldinger & Aldrich, 1990, p. 49). In addition, the re-experience of mass migration to the USA, increasing importance of small businesses for the USA, significant entrepreneurial success of some new migrant groups, and continuous low self-employment rates among native black people made the ethic trade studies an active field (Waldinger, 1989, p. 48; Waldinger et al., 1990). Light and Rosenstein (1995) emphasize that ethnic entrepreneurship in the United States has many important roles, such as economic growth, business establishment, revival of local businesses, economic diversity, innovation, and preservation of cultural heritage, and state that the existence and contribution of ethnic entrepreneurs in the US economy is a critical factor, especially for small businesses and economic developments in cities.

Waldinger Aldrich and Ward (1990, p. 22) developed the interaction model to explain the complexity of ethnic entrepreneurship with a multidimensional approach. The interactional model is based on three components (Figure 1), opportunity structures, group characteristics, and strategies (Aldrich & Waldinger, 1990; Waldinger et al., 1990), and it provides an explanation of interactive factors that are required for ongoing operations of ethnic businesses. Accordingly, the interactional model emphasizes that economic activities are resource mobilization through ethnic networks and the interactive consequence of opportunity pursuit. According to the interactional model, the strategies implemented by ethnic entrepreneurs are inclined by both opportunity structure and group characteristics. Opportunity structure consists of market conditions and entrepreneurs’ abilities to access business ownership. Group characteristics depend on entrepreneurs’ predisposing characteristics and resource mobilization abilities.

Figure 1

Interactional model in ethnic business development (Reference: Waldinger et al., 1990, p. 22).

Opportunity structures consist of market conditions that support products or services for co-ethnic groups and the conditions in which a wider non-ethnic market is offered. Opportunity structures also include accessibility to business opportunities, and the access largely depends on the level of competition among ethnic groups and government policies. Group characteristics include predisposing factors such as blocked mobility, selective migration, and aspiration levels. In addition, they include resource mobilization potential and ethnic social networks, general organizational capacity, and government policies that restrict or facilitate resource procurement. Ethnic strategies are the result of the interaction of opportunities and group characteristics as ethnic groups adapt to their environment (Waldinger et al., 1990, p. 114).

According to Fregetto (2004, p. 170), Waldinger et al. state that ethnic strategies come out of the interaction of four factors (Figure 2), and this provides a model to explain the ethnic strategies in ethnic business development as ethnic entrepreneurs use available resources to create their own niches. From this standpoint, the interactional model provides a relational perspective that includes opportunity structure, which includes market conditions and blocked mobility; ethnic community characteristics such as ethnic social networks and close ties to ethnic groups, which contribute to ethnic entrepreneurs’ success; ethnic business strategies, which arise from the interaction between ethnic group and opportunity structure; and settlement characteristics of ethnic entrepreneurs. In this respect, the interactional model offers a framework for ethnic entrepreneurs to see and get opportunities, especially in social, political, and cultural terms.

Figure 2

Interactional model in ethnic business development (Reference: Fregetto, 2004, p. 170).

4 Method

5 Enterprising Meskhetian Turks Living in the USA: A Practice in Dayton

The data obtained from the interviews with enterprising Meskhetian Turks indicate that the interactional model ideally explains ethnic business development. The obtained findings are evaluated in the context of the interactional model and are detailed in the remaining part of the article.

6 Discussion

It is known that the immigration experiences and ethnic networks of ethnic entrepreneurs have a positive effect on entrepreneurial activities (Portes, 1995). It is seen in many studies that immigrants benefit from social networks in business start-ups (Aldrich & Zimmer, 1986; Chand & Ghorbani, 2011; Jan, 2017; Karadal et al., 2021; Martinez & Aldrich, 2011; Ndofor & Priem, 2011; Portes & Zhou, 1992; Volery, 2007; Zhou, 2004). It is seen in the study that ethnic entrepreneurs operating in the logistics sector initially worked as paid employees in businesses owned by their Russian and Bosnian friends, who were not of their own ethnic origin. Since they lived in Russia in the past and mastered the Russian language, regarding business experience and business establishment, they benefited from non-ethnic networks in business establishment and growth processes due to their language skills. Afterwards, it is seen that pioneer entrepreneurial Meskhetian Turks supported their relatives and friends from their own ethnic origin on how to establish and operate within the logistics business, and this confirms that ethnic entrepreneurs can adapt to business markets more quickly, especially thanks to social networks. Access of different ethnic groups to ethnic networks and social capital resources may vary. Therefore, it should be taken into account that different ethnic groups may adopt different business strategies. For that reason, it should be noted that the data presented in this study provide a general picture but do not reflect the status of all ethnic entrepreneurs in the region.

Among ethnic resources, the existence of financial capital may have a vital role in the development of entrepreneurial activity (Light & Gold, 2000, p. 116). In the study, ethnic and non-ethnic networks played an important role in entrepreneurial activity, but financial support was seen only among ethnic networks. Karadal et al. (2021, p. 1587) found that financial, entrepreneurial, social, family, intellectual, and knowledge capital are essential ingredients for entrepreneurial activities. Thus, the ability to get financial support can encourage an immigrant’s entrepreneurship activities in the USA.

Masurel et al. (2001, p. 3) stated that ethnic entrepreneurs have great potential for business organization between both the country they come from and the country they immigrate to. However, it can be said that this is not true for this study. Because physical distance between the country that entrepreneurs immigrated to and the country they came from is too great. This is because goods or services to be traded should not increase the total cost for entrepreneurs due to physical distance. In addition, transnational activities may not be preferred by entrepreneurs if the goods to be traded are not in the category of non-substituted, rare, or precious goods.

In this study, it is seen that ethnic entrepreneurs usually prefer small and medium-sized businesses, and most of them are family businesses operating in the service sector. This confirms data shared in studies from Light and Rosenstein (1995) and Phizacklea and Ram (1995). It is also seen that ethnic entrepreneurs contribute to economic development and employment in the region, and the owners of businesses with ten years of service started new enterprises in different sectors, and their employee profiles changed with the growth of the business.

Besides the market conditions, another factor that affects the enterprises of ethnic groups is property access, competitiveness among ethnic groups, and government policies (Aldrich & Waldinger, 1990, p. 117). It is seen in this study that local politicians prepared plans to support ethnic entrepreneurs with regulations (Welcome Dayton Plan) concerning entrepreneurs. This indicates that local governments in the region opened doors to ethnic groups with an immigrant-friendly approach and offered policies that encouraged entrepreneurship to attract immigrants. Therefore, such policies implemented by local governments on behalf of immigrants increase the success of ethnic entrepreneurs in business and offer an economic opportunity.

Light and Rosenstein (1995) emphasize that ethnic entrepreneurship is not only an economic activity but also it should be considered in social, cultural, and historical contexts. The study indicates that not only ethnic networks but also non-ethnic networks affect entrepreneurship in terms of resource mobility concerning group characteristics, especially due to the differences in migration experiences. Additionally, it is seen that principally non-ethnic networks played a remarkable role in recognizing and obtaining entrepreneurial opportunities, and then information exchange and orientation among ethnic networks occurred. In addition, the fact that Meskhetian Turks have group characteristics with a strong tendency towards business ownership may be a result of their efforts that can be defined as “climbing upwards,” noted by Waldinger et al. (1990), and it can be described as a way to achieve socio-economic adaptation and growth (Ilhan-Nas & Tosun, 2015, pp. 181–182). The tendency of the ethnic group in this study toward entrepreneurial traits indicates the existence of attracting factors in entrepreneurship. Thus, entrepreneurial qualities seem to encourage immigrants’ entrepreneurial activities (Karadal et al., 2021, p. 1587).

7 Conclusions

Ethnic entrepreneurship has been and is still an important form of economic activity for individuals belonging to minority ethnic groups in the USA. When we look at scientific studies on ethnic entrepreneurship, we can see that, as a result of the bibliometric analysis by Guerra-Fernandes et al. (2022), the studies on ethnic entrepreneurship have become more important since 2010, and there has been a significant increase right up to 2019. Although 2003 marked the beginning of a new publication cycle in this field of knowledge. Such results indicate a lot of interest from researchers in exploring a rising theme within the field of ethnic entrepreneurship.

Entrepreneurs participating in the study joined in both market conditions and continued their entrepreneurial activities both in an ethnic (closed) market and in a non-ethnic (open) market, and no competition was found between the entrepreneurs. This may be due to the vast opportunities and low ambiguity in the US market. The opportunity structure of the economic environment interacts with the group characteristics of entrepreneurs for the ethnic economy to function. The fact that entrepreneurs created residential areas by populating Dayton, plus their predisposition to entrepreneurship is a consequence of group characteristics. Entrepreneurs stated that they were supported by their families, spouses, siblings, and close relatives while establishing a business, getting information about the business, raising capital, and providing a labor force. Such ethnic, kinship, and familial roles favor the existing literature on the culturalist perspective, which emphasizes cultural networks, family dependency, and co-ethnic origins (Waldinger et al., 1990). Another important finding of this study on the success of entrepreneurs is that entrepreneurs did not experience any discrimination, restriction, pressure, or blockage in business establishment activities, and it is seen that government policies in the country supported and encouraged all entrepreneurs in the process of ownership.

Social capital and social networks play a remarkable role in establishing, raising, and sustaining businesses in ethnic entrepreneurship. Aldrich and Waldinger (1990) state that ethnic entrepreneurs have strong local networks in society, and most of the business strategies depend on those networks. Ethnic entrepreneurs contribute to regional economic development by establishing new businesses, increasing employment, and using local raw materials and resources. In addition, ethnic entrepreneurs enhance the diversity and wealth in society by preserving their cultures and communities. They raise their social and economic status by improving their communities and businesses. With the interactive model applied to the entrepreneurial Meskhetian Turks in ethnic business development, it is seen that several important strategies emerged when they used their ethnic resources in the business establishment and development process. Some of the anticipated and verified ethnic strategies of the model are listed as follows.

1. Strong social networks and ethnic close ties in issues such as establishing and maintaining a company, providing a labor force, raising capital, getting information and skills required to run the business.

2. Entrepreneurs’ willingness to work harder to manage the relationships with customers.

3. Having group characteristics predisposed to entrepreneurship. Not just the entrepreneur, but all family members taking on various roles at home and in the business.

As anticipated by Waldinger et al. (1990), these results led to ethnic business development, mobilization of ethnic resources, and ethnic consciousness and solidarity to be created for entrepreneurs. Considering the importance of market conditions in the model, it is seen that the enterprising Meskhetian Turks are active in both markets and use their ethnic resources effectively. Finally, this study reveals the importance of non-ethnic networks as an ethnic strategy for entrepreneurs operating in the logistics sector. The finding here is that non-ethnic networks, which the interactive model does not take into account, are used by Meskhetian Turks as an ethnic strategy in business establishment and development activities in the logistics sector. Therefore, the privileged connections of non-ethnic networks can be added to the resource mobilization of ethnic entrepreneurs.

In general, the interactive model is multidimensional and dynamic, as indicated by the data presented here on the business establishment processes of the enterprising Meskhetian Turks. It is seen in this study that entrepreneurs do not face any restrictions or obstacles, and they mainly mobilize ethnic and non-ethnic networks to be successful in ethnic business development. It is also determined that group characteristics and government policies are other important points that support the process of the success of entrepreneurs. In conclusion, ethnic groups adapt to resources obtained from their environment over time.

8 Current Studies and Recommendations

As ethnic entrepreneurship is an ever-growing field, it is important to constantly update the research and definitions in this field. Researchers, academics, and policy-makers follow recent developments in the field of ethnic entrepreneurship and offer new initiatives and perspectives.

Some of the cruxes that occur in accordance with current studies and discussions in the field of ethnic entrepreneurship are as follows: The importance of multicultural business environments is emphasized along with globalization and an increase in migration. It is indicated that ethnic entrepreneurs develop creative and innovative business ideas benefiting from different cultural perspectives (Audretsch et al., 2021; George & Zahra, 2002; Karlsson et al., 2019; Nathan & Lee, 2013; Prenzel et al., 2022). Ethnic entrepreneurs also play a remarkable role in the rapidly developing digital business world. It is stated that ethnic entrepreneurs establish successful businesses in fields such as e-commerce, digital marketing and online platforms, and access to global customers (Burgess, 2016; Cole et al., 2017; Srinivasan & Venkatraman, 2018). It is also emphasized in the literature that ethnic entrepreneurs not only focus on economic success, but they also adopt social impact and sustainability values. It is stated that ethnic entrepreneurs are involved in activities such as ensuring employment, reinforcing the local economy, and supporting social responsibility projects and, therefore, contribute to their communities (Adendorff & Halkias, 2014; Azmat & Zutshi, 2012; Herrera & Heras-Rosas, 2020; Pedrini et al., 2016; Tesfaye & Lundström, 2019). It is also stated that ethnic entrepreneurs integrate their cultural heritage into business ideas and, therefore, get competitive advantage by offering unique products and services (Indarti et al., 2021; Voicu, 2014). In this context, it can be said that recent studies focus on issues such as diversity, sustainability, technology, cooperation, and social impact.