ABSTRACT
The literature on entrepreneurship has paid considerable attention to the role of ethnicity in new venture formation. However, there has been comparatively little attention paid to the role of ethnic ties in new ventures after founding. This chapter discusses the results of a case study of an international network of high-end fashion leather goods producers, distributors, and retailers in Russia, Eastern Europe, and the Middle East. The important role of ethnicity in facilitating entrepreneurship has been widely recognized in the entrepreneurship literature. The literature on ethnic enclaves, on the other hand, focuses on "immigrant groups who concentrate in a specific location and organize a variety of enterprises serving their own ethnic market and/or the general population". These enclaves are characterized by co-location and co-ethnicity. The enabling role of ethnic networks extends well beyond resource acquisition and is central to the nature and form of the relationships between actors.
