Because Korean immigrants in the United States faced a lot of disadvantages and difficulties working in American labor market, so they developed their own small business and became the most entrepreneurial ethnicity. There were two main reasons why Korean immigrants started their own small business rather than working in American labor market. First was due to the human capital theory, where the wages differences for Korean immigrants were based on their human capitals, such as education, skills, and former experiences. (Park, 2010). Also, the language, culture barriers, and other non-transferable skills lead to the disadvantaged status in American labor market for Korean Immigrants too. The second main reason why Korean immigrants opened
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According to Park’s article, “Sources and Resources of Korean Immigrant Entrepreneurship”, “in the U.S.A., where the segmented labor market is well documented, certain groups of workers tend to get jobs in one market rather than another: racial minorities and women are stereotyped as inadequately reliable and stable employees, and are more likely to be relegated to second rung jobs” (Park, p. …show more content…
to start their businesses. The money Korean immigrants brought into the U.S. were either from their personal savings or loans from friends and kin, they rarely borrow loans from banks. (Park, 2010). “Family borrowing is actually more frequent than bank borrowing. Asian owners are roughly three times more likely to finance business entry with loans from friends that are non-minority owners” (Park, p.894). Rotating credit association (kye) also became population among Korean immigrants after the regulation that set “the limit on the amount of money immigrants could bring out of Korea was lifted” (Park, p.893). Because more and more Korean immigrants entrepreneurs opened business in the United States, in 1980, there were a lot of Korean-American banks established in the U.S. to help with the money transfer and provide loans for the immigrants. It was easier to get loan from the ethnic banks than non-ethnic banks for Korean immigrants and there was a close relationship between Korean American banks and Korean American businesses. Most of the small businesses Korean immigrants opened were retail and service sectors and the development of those businesses helped improved the employment rate for other Korean immigrants with little or no capital to start his or her own
According to Park’s article, “Sources and Resources of Korean Immigrant Entrepreneurship”, “in the U.S.A., where the segmented labor market is well documented, certain groups of workers tend to get jobs in one market rather than another: racial minorities and women are stereotyped as inadequately reliable and stable employees, and are more likely to be relegated to second rung jobs” (Park, p. …show more content…
to start their businesses. The money Korean immigrants brought into the U.S. were either from their personal savings or loans from friends and kin, they rarely borrow loans from banks. (Park, 2010). “Family borrowing is actually more frequent than bank borrowing. Asian owners are roughly three times more likely to finance business entry with loans from friends that are non-minority owners” (Park, p.894). Rotating credit association (kye) also became population among Korean immigrants after the regulation that set “the limit on the amount of money immigrants could bring out of Korea was lifted” (Park, p.893). Because more and more Korean immigrants entrepreneurs opened business in the United States, in 1980, there were a lot of Korean-American banks established in the U.S. to help with the money transfer and provide loans for the immigrants. It was easier to get loan from the ethnic banks than non-ethnic banks for Korean immigrants and there was a close relationship between Korean American banks and Korean American businesses. Most of the small businesses Korean immigrants opened were retail and service sectors and the development of those businesses helped improved the employment rate for other Korean immigrants with little or no capital to start his or her own