Arab-American Entrepreneurs /http%3A%2F%2Fwww.allied-media.com%2FArab-American%2Fimages%2Fcharts_entreprenuers.gif)
The sample includes all entrepreneurs 16 years of age or older. The census defines entrepreneurs as people who report themselves to be "self-employed" in their "own incorporated" or
"non-incorporated business," "professional practice," or "farm." The 1990 census data show 73,829 Arab-American and 13,408,206 non-Arab-American entrepreneurs. Sixty-four percent of
self-employed Arab-Americans own incorporated businesses, compared with only 27 percent of other entrepreneurs. See Table 1
Citizenship and Immigration
Most Arab-American entrepreneurs are United
States citizens, either by birth (47.0 percent) or naturalization (36.3 percent). Arab migration to the United States dates to the late 19th and early 20th centuries. Early migrants
typically were Syrian or Lebanese merchants pursuing economic interests. Legal and political restrictions, the Depression and World War II curbed Arab migration between 1925 and 1948.
Arabs immigrating since World War II
have tended to be from capitalist classes -- landed gentry and influential urban-based families -- replaced by new leadership in their various home countries. Many post-war immigrants
were Palestinians displaced when Israel was established in 1948. Others were Egyptians whose land was appropriated by the Nasser regime; Syrians overthrown by revolutionaries; and Iraqi
royalists fleeing the Republican regime. They often had attended Western or westernized schools, spoke fluent English, and identified themselves as members of a professional class.
Immigration from the Middle East increased dramatically in the late 1960s. By 1990, more than 75 percent of foreign-born Arab-Americans in had immigrated after 1964, compared with 52
percent of the total U.S. foreign-born population. The largest share (44 percent) of these arrived between 1975 and 1980, compared with 24 percent of all other foreign-born
persons.
Many Arabs immigrated during this period because of constant turmoil in the Middle East: the 1967 war, the civil war in Lebanon, the Kurd-Iraqi War of the 1960s and the violence in Iraq
and Iran after 1978 all were trigger points. These coincided with the U.S. Immigration Act of 1965, which ended the quota system favoring immigrants from Europe. Many in this migration
flow were Muslim, with even higher educations
and
incomes than their predecessors. This group's socioeconomic attainment pattern also greatly surpassed that of other immigrant group, and the American population as a whole. (See
chart 2)
Religion
Before 1960, as many as 90 percent of Arab immigrants were Christians, but recent immigrants are mostly Muslim. There were several prominent sects within the Christian population:
Maronite Christians from Lebanon, Coptic Christians from Egypt and Chaldeans from Iraq.
The new immigrants settled in or near established Arab-American communities. The Detroit metropolitan region, especially Dearborn, attracted a steady stream of Arab immigrants after
1965 and may have the largest number of recent Arab immigrants. Most came from a variety of occupational backgrounds and found work in the auto industry or in other working-class
employment, although not all Detroit Arabs sought such employment.
Christian Chaldeans, an
Iraqi minority in a Muslim country, were among the first to take advantage of the 1965 immigration act. About one thousand lived in Detroit before passage of the act. After 1965 their
numbers increased, until by 1974 they accounted for approximately one-seventh of Detroit's estimated 70,000 Arab-Americans. They opened grocery stores and established a reputation in
that business similar to that of Korean grocers. By 1972 the Chaldeans were running about 278 stores in Detroit, and assisting others in the United States.
Another large Arab-American settlement in Brooklyn had attracted earlier Lebanese and Syrian migrations. Los Angeles lured many Coptic Christians from Egypt, part of the Egyptian
immigrant wave after the 1967 Arab-Israeli War.
Where do We Live?
Today, Arab-Americans -- like many minority groups -- are geographically concentrated. Over two-thirds live in ten states; one-third in California, New York, and Michigan. They are also
more likely than other Americans to live in metropolitan areas. Thirty-six percent of Arab-Americans are found in ten cities, primarily Detroit, New York, or Los Angeles.
Entrepreneurs in the
United States, whether or not they are Arab-American, most often live in the Pacific, South Atlantic, East North Central, or Mid-Atlantic regions. The regional distribution of
Arab-American entrepreneurs is similar to that of non-Arab-American entrepreneurs.
Age, Sex and Marital Status
Both groups of entrepreneurs - Arab-American and non-Arab-American -- tend to be between the ages of 25 and 44, and their age distributions are similar, with Arab-Americans generally
younger than their non-Arab-American counterparts in most age categories, which may reflect the large proportion of self-employed Arab-American workers. Studies of other ethnic groups
show that businesses tend to be established by newer immigrants, and Arab immigrants are, for the most part, young.
Entrepreneurship in the
United States is male-dominated. Regardless of ancestry, 67.4 percent of entrepreneurs are male, 32.6 percent female. The ratio of male to female entrepreneurs is slightly larger for
Arab-American than for non-Arab-American entrepreneurs. Entrepreneurs of all ancestries in the United States are likely to be married (74.3 percent for non-Arab-Americans and 73.6
percent for Arab-Americans). It is interesting to note, however; that close to 16 percent of Arab-American entrepreneurs are never-married singles (compared to 11.7 percent for
non-Arab-Americans).
(See Chart 3)
Education
In general, Arab-Americans are better educated than the average American. A greater percentage attends college, and those who earn master's degrees or higher do so at twice the national
average. While most entrepreneurs in the United States have only a high school diploma or some college experience, Arab-American entrepreneurs are more likely to attend college and have
college and postgraduate degrees.
These patterns remain the
same when broken down by sex. Male entrepreneurs are more likely than females to have postgraduate degrees, however, and women entrepreneurs are more likely to have only a high school
diploma or some college experience. (See Chart 4)
Occupations
The occupational distribution between Arab-American entrepreneurs and their non-Arab counterparts is quite striking. The top five occupational categories for both groups are:
|
Executive/ administrative/managerial
Professional specialty
SalesServices (not personal domestic or protective),
andPrecision repair
|
Sales comprises the largest percentage of both Arab-American and non-Arab-American entrepreneurs, although the rate of Arab-Americans in sales (33.4 percent) is almost double that of
non-Arabs (17.9 percent). Moreover, non-Arab-American entrepreneurs are much more evenly distributed across other occupations such as farming, fishing or forestry.
The top four industries attracting Arab-American and non-Arab-American entrepreneurs are:
-
Retail Trade
-
Construction
-
Finance/insurance/real estate, and
-
Professional industries
|
Consistent with the sales figures cited above, Arab-American entrepreneurs overwhelmingly work in retail
trade (34.6 percent), followed by the professional industries (17.1 percent). Few are engaged as miners, administrators or in the agricultural/forestry/fishing fields. The same can be
said for the entertainment/recreation field (although some notable exceptions apply).
Non-Arab-American
entrepreneurs are more evenly distributed across industries, but most are also in the professions (19.5 percent) and retail trade (16 percent); the fewest work in
entertainment/recreation (1.8 percent) and transport/commerce/utilities (3.7 percent).
Where We Work
This occupational and
industrial distribution varies according to region. Arab-American entrepreneurs in executive/managerial occupations concentrate in the Mid-Atlantic, Pacific, or South Atlantic regions,
while those in the professions gravitate toward the East North Central and, less so, the Mountain regions. Arab-Americans in sales favor the Pacific; in service occupations, the East
North Central and South Atlantic; and, in precision repair, the Pacific and Mid-Atlantic regions.
By comparison, non-Arab-American entrepreneurs in executive/managerial occupations and sales
typically live in the Pacific and South Atlantic, while those in professional occupations are most likely to be found in the Pacific and Mid-Atlantic regions, and those in retail trade
tend to live in the South Atlantic and Pacific, and are least likely to live in the East South Central and New England regions.
The industries among the top four for Arab-American entrepreneurs are distributed regionally as
follows: Arab-Americans in construction overwhelmingly locate in the Pacific, South Atlantic, and Mid-Atlantic regions, with the greatest concentration of non-Arabs in construction in
the South Atlantic and Pacific, and a few in the Mountain region. The finance/insurance/real estate category is the only industrial arena where both groups, with similar proportions of
workers, are most likely to live in the Pacific or South Atlantic regions and least likely in East South Central.
Among those industries not ranking in the top four for non-Arab-American entrepreneurs, those in professional health are concentrated in the Pacific and Mid-Atlantic, with few in the
Mountain and East South Central regions, but Arab-American entrepreneurs in this industry reside primarily in the Pacific region and less often in the East South Central and New
England.
Similarly, most non-Arab-American entrepreneurs in health and education can be found in the Pacific
and Mid-Atlantic, with the fewest in the Mountain and East South Central regions, while Arab-American entrepreneurs in these industries are concentrated in New England, the South
Atlantic and Mid-Atlantic.
The Professional Elite
The relationship between education and occupation is not surprising. Entrepreneurs in professional occupations often have post-graduate degrees. Close to 80 percent of Arab-American
entrepreneurial professionals 25 years of age and older have higher degrees, compared to nearly 55 percent of their non-Arab counterparts. Entrepreneurs of every ancestry in executive,
precision repair, and sales occupations commonly have some college experience, while most in service occupations have not gone beyond high school.
While the groups share similar patterns in education and industrial distribution, the variance
between them is quite striking. For example, entrepreneurs in the professional health industries will more likely have postgraduate degrees, while those in finance/insurance/real estate
usually have some college experience. But the proportion of Arab-Americans holding degrees in both fields is at least 20 percent higher.
(See Chart 5)
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How Much We Make
As occupation and industry vary, so does income. The average Arab-American entrepreneur may have a higher personal and household income than a non-Arab-American counterpart in most
regions of the United States.
Median household income is strikingly higher for Arab-Americans in the Pacific, Northeast, New England, and South Atlantic regions, exceeding $50,000 annually. Arab-Americans in the
Mountain region have higher household, but lower personal, incomes. In the Pacific region incomes of the two groups are similar, with non-Arab-American entrepreneurs having lower
household but slightly higher personal incomes.
When median personal income is broken down by sex, many of the above-noted patterns are repeated.
Arab-American female and male entrepreneurs earn more than their non-Arab-American counterparts in New England, West North Central, South Atlantic, and East South Central.
Non-Arab-American male and female entrepreneurs tend to have higher personal incomes in the Mountain region. All women, regardless of ancestry, earn very little, but Arab-American
female entrepreneurs typically earn more than non-Arab-American females in all regions except West South Central and Mountain. Males of all ancestries typically earn more than females
in every region. (See Chart 6)
A Misunderstood Group
Arab-Americans are numerous, affluent and often misunderstood. Like many other ethnic or minority groups, they suffer from stereotyping and negative press. Yet they represent
significant and distinct niche markets.
Arab-American entrepreneurship is as old as America, and has had to endure the traditional problems of inadequate capital, federal restrictions and the failure of policy makers and
educators to understand its importance in the community. A recent census estimates the receipts of Arab-American entrepreneurs to be 1 percent of the U.S. total. This figure, however,
is debated by many who say that the census is only looking at small companies.
A glance through the advertising pages of Arab-American publications reveals a mix of specialized and mainstream products and services, such as medical, legal and educational services;
literary works; foods; and computer and electronic products.
Ultimately, like any other immigrant group, Arab-Americans want to enjoy America's riches while preserving the important parts of their native culture.
El-Badry is a president of International Demographic and Economic Associates (IDEA), an Austin, Tx-based consulting
firm. El-Badry, who is an Arab-American of Egyptian descent, also is a vice president with Teknecon Energy Risk Advisors LLC, an Austin, Tx.-based energy consulting company. She serves
on the advisory board of the Secretary of Commerce's Decennial Census as a representative of the Arab-American community.