chapter  11
26 Pages

Ethnic Minorities’ Strategies for Market Formation: The Israeli Arab Case

WithMichael Sofer, Itzhak Benenson, Izhak Schnell

This chapter analyses the way in which individuals' plants participate in the market; examines major routes of expansion and contraction in markets; and investigates the viability of the barriers of ethnicity and peripherality. It seeks to investigate the set of forces that shapes the structure of people's opportunities by comparing different entrepreneurs' choices. The chapter aims to compare the order of entrepreneurs' expansion into markets using four independent variables: religious community, generation, education and industrial branch. It deals with the development of Arab industry in Israel and the structural setting of this development. The chapter offers a conceptual framework for understanding market expansion, followed by a discussion of the research methods employed in the study. It also analyses the participation of individual plants in the different markets of the Israeli Arab space-economy. According to ethnic enclave theory, entrepreneurs can be expected to prefer intra-ethnic market outlets and to use them as an anchor for further expansion.