Ecological Succession via Gentrification: The Response of Incumbent Entrepreneurs

Abstract

Recent residential and commercial development patterns indicate resurgent movement into America's urban central-city areas. This paper examines the responses of incumbent ethnic-enclave entrepreneurs to these environmental changes. Drawing on extant theory, the paper reviews traditionally argued advantages of a business's location in ethnic enclaves and discusses potential limitations of these approaches. The paper develops preliminary hypotheses of incumbent response to neighborhood change, and these ideas are tested through a qualitative study of incumbent business owners in an ethnic enclave undergoing demographic transition. Findings indicate a pattern of responses that match Hirschman's (1970) Exit, Voice and Loyalty framework.

Keywords: Segregation, Minority-owned firms, Urban Areas