Immigrant Entrepreneurship: an Account of the Korean Experience Wallace T.F Taylor Georgia State Universtity, [email protected]

Immigrant Entrepreneurship: an Account of the Korean Experience Wallace T.F Taylor Georgia State Universtity, Wallacethor.Taylor@Gmail.Com

Engaged Management ReView

Volume 1 | Issue 3 Article 1

2017 Immigrant Entrepreneurship: An Account of the Korean Experience Wallace T.F Taylor Georgia State Universtity, [email protected]

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Recommended Citation Taylor, Wallace T.F (2017) "Immigrant Entrepreneurship: An Account of the Korean Experience," Engaged Management ReView: Vol. 1 : Iss. 3 , Article 1. Available at: https://doi.org/10.28953/2375-8643.1027 https://commons.case.edu/emr/vol1/iss3/1

This Empirical Papers is brought to you for free and open access by CWRU Commons. It has been accepted for inclusion in Engaged Management ReView by an authorized editor of CWRU Commons. Immigrant Entrepreneurship: An Account of the Korean Experience

Cover Page Footnote Author(s) would like to acknowledge the contributions of Robert Casey and Ben Oviatt ot this study.

This empirical papers is available in Engaged Management ReView: https://commons.case.edu/emr/vol1/iss3/1 EDITORIAL NOTE Immigrant Entrepreneurship: A sizeable amount of effort has been expended towards examining the general drivers and conditions that lead to entrepreneurial activity and its sustain- An Account of the Korean Experience ment. Most efforts have focused on affect, identity, or specific cognitive skills that are needed to engage in entrepreneurial action. Wallace Taylor’s article is Wallace Taylor different. He wants to examine and understand specific Georgia State University conditions that enable and grow entrepreneurial action in unique cultural and ethnic contexts—that of local Korean communities in the United States. These communities are known to be one of the most entrepre- ABSTRACT neurial and risk taking groups in the US and globally. He finds the specific role of social networks that emerge This research account reports conclusions from a small group of interviews at the community-level through religious activities, done with Korean-American entrepreneurs located in three ethnic enclaves and the growing impact of the use of social media to near Atlanta, GA. The purpose of this research is to further knowledge in use and expand relationships that can support and immigrant entrepreneurship. Methodology comprised seven one-hour expand entrepreneurial activity. Another distinguish- interviews conducted with first-generation business owners (one male and ing feature is the rich ethnographic tone of the study, six female) in three enclaves in Atlanta. The research used qualitative design which reveals the experience and life contexts of these entrepreneurs in this unique cultural enclave. and focused on answering three questions: How do Korean entrepreneurs discover and exploit opportunities to develop business? How does this sample describe their experiences in the studied enclaves? And how might espoused cultural traits and business skills affect entrepreneurial success? I found that these ethnic entrepreneurs started and operated their businesses in ways similar to what has been reported in prior research and similar to native-born American entrepreneurs. However, some important differences also emerged. First, Korean electronic social media were used in ways not previously reported. Second, churches provided support that seemed to be greater than support received from secular enclave associations. Third, the enclaves themselves evolved in ways that are different from what has been reported about Korean enclaves in the current literature. These findings imply that the entrepreneurial experience for this population is self-contained and suggest that these topics warrant additional research.

55 Engaged Management ReView MAY 2018, VOL 1, NO. 3 SYNOPSIS

Purpose • Family involvement was a central theme How do espoused Korean cultural traits This research reports deductions from in business operations. and business skills affect entrepreneurial success within the enclave? a small group of interviews done with • The Internet and online sales played vital Korean-American entrepreneurs located roles, depending on the business type. • Interviewees stated that understanding in three ethnic enclaves near Atlanta, GA. The beauty supply store experienced Korean culture requires an under- The purpose of this research is to expand improvement in revenue, while the video standing of Korean history. The Korean– our understanding of immigrant entre- store experienced declining sales preneurship. It also is intended to provide Japanese war strongly shaped how practical knowledge useful to those inter- • Advertising primarily focused on print, interviewees view their own culture and ested in engaging Korean entrepreneurs. church announcements, and Korean the value systems that shape it. festivals. • Education is highly valued because it is a Problem of Practice • Specific forms of Korean social media means of overcoming challenges. The problem of practice is centered on the (e.g., KakaoTalk, Cyword) were used to • Hard work is recognized and expected in dearth of knowledge about the Korean market goods and services the Korean culture. entrepreneurial experience. Entrepre- • One firm gained publicity by being high- neurs have an important role in growing • Religion is seen as important to business. lighted in local magazines (Ms. Lee). the economy, providing jobs, and meeting Interviewees reported that churches the needs and wants of communities. In • One company discovered opportunity were helpful for their businesses and addition, immigrant entrepreneurs bring by diversifying the goods and services were a better source of support than culturally varied experiences and exper- offered and reaching out to several kinds secular Korean associations. tise that are specific to them and their of retail locations (Ms. Noe). community and that affect how they Conclusions • One firm expanded its market by catering relate to the host environment. Despite to other immigrants (Ms. Nang). This This research, which began with the the high number of entrepreneurs in these business was unique in that the owner curiosity of an immigrant entrepreneur communities, very little is known about claimed that a substantial portion of her in the United States, found that Korean how their experiences shape their deci- customers were non-Koreans. entrepreneurs in enclaves in Atlanta, GA, sions and business activities. initiate and operate ventures in ways that How do Korean entrepreneurs describe are similar to entrepreneurs born in the Results their experiences in working within the United States. Both groups tend to build How have Korean entrepreneurs in a enclave? on their own personal experience. Their metropolitan Atlanta Korean enclave businesses are not particularly innova- discovered and exploited the opportuni- • Many interviewees said the Korean tive, and financing usually comes from ties to develop business ventures? This American Association of Greater Atlanta their own savings. Family members work study resulted in the following findings: provided support. long hours with little pay, reinvesting • Associations, such as beauty supply, the savings back into their business. The • None of the interviewees created their grocery, and laundry associations, were distinction, of course, is that the Korean business based on business research important for business support. entrepreneurs appeal to the Korean popu- and planning. The people interviewed lation and culture. all made businesses that were common • Most customers were Korean. startup ventures for Korean entrepre- • The geographical concentration of Korean entrepreneurs today use Korean neurs, as in the case of Ms. Ko and Mr. Korean-owned businesses stretched social media to promote their businesses. Wang. These people started a business from Doraville, GA to Duluth, GA, to Little or no research has been done on with which they were already familiar Suwannee, GA. Respondents had varied how social media affects business and based on experience, regardless of opinions about the purpose of or reason entrepreneurship in ethnic enclaves. external competition. for this distribution. Because social media is such an important business tool in the dominant culture of • Funding often came from prior personal • The local government recognized the the United States, a full understanding of savings. None of the participants used presence of and challenges confronting ethnic entrepreneurship requires future Rotating Credit Associations, and only the Korean community and instituted research on the topic of social media use one took out a bank loan regulations to promote communication, to reach consumers in ethnic enclaves. protection, and public image.

56 Engaged Management ReView MAY 2018, VOL 1, NO. 3 Consistent with prior research, I found that evolution in Atlanta has been different framing of Korean entrepreneurs might Korean-American churches provide some from what has occurred in Los Angeles (cf. represent opportunities for business support and guidance to Korean-American Zhou & Cho, 2010), research that would owners to improve commerce with this entrepreneurs. However, in contrast with provide a better understanding of these group, to grow through rich experiences in what prior research has found, the local differences might benefit both the ethnic cultural diversity, and to learn lessons that secular Korean associations in Korean enclaves and the larger culture. might be transferred to enhance business enclaves had little influence. practices and entrepreneurial success. Practical Relevance Perhaps related to this issue is that the This research shows practical significance Keywords dramatically growing Korean population in for three main reasons. First, Korean entre- Korean, entrepreneurism, culture, man- Atlanta is changing the nature of the local preneurism is a strengthening economic agement, ethnic entrepreneurism, Atlanta, Korean enclaves. The Duluth and Suwanee reality in these immigrant enclaves in international business enclaves seem to be gaining prominence, Atlanta, GA. Second, Korean culture, in the to the detriment of the original enclave form of societal relationships, is likely to in Doraville. Furthermore, the quality of continue to permeate throughout the host government responses has had an effect society. Third, understanding the elements on that evolution. Because such enclave that shape the culture, commerce, and

METHODS

Research Questions the ethnic enclaves. The research method The interviews took place in the entre- How do Korean entrepreneurs within involved multi-case exploration. Each preneurs’ place of business. Software a metropolitan Atlanta Korean enclave interview represented a case study. I was used to link the transcripts of the discover and exploit the opportunities hoped to attain some measure of trans- audio recordings to the interview code- to develop business ventures? How do ferability with the findings of this project. book codes and then to the corresponding Korean entrepreneurs describe their research questions. For each interview, experience in working within the enclave? Data Collection and Analysis interview reflection documents and How do espoused Korean cultural traits Interviews were conducted with seven contact summary forms were completed and business skills affect entrepreneurial first-generation Korean entrepreneurs in to summarize the data collected. success within the enclave? three recognized Korean communities in Georgia: Doraville, Duluth, and Suwanee, After the transcripts were created and Research Design which are located in northeastern Atlanta. the coding completed, the researcher and contributors independently identified I completed a qualitative study using Most subjects were selected through the themes and anomalies. We then met to interviews consisting of open-ended local Korean Yellow Pages. The seven discuss these analyses and to arrive at questions. The interviews explored how self-selected participants came from an findings. Korean entrepreneurs in the geographic original pool of 50 business owners. (Most locale selected affect and interact with of the 50 potential participants declined to be interviewed.)

57 Engaged Management ReView MAY 2018, VOL 1, NO. 3 PRACTICAL PROBLEM However, Korean enclaves are not mono- group that has one of the highest propor- lithic, and they do not all appear to be as tions of self-employed entrepreneurs According to the Pew Research Center’s tightly structured as the descriptions of (Yoo, 2000). 2012 Asian-American survey, Asian those in Los Angeles (Zhou & Cho, 2010). Americans make up the best-educated In addition, how social media influence Business formation and entrepreneurial and fastest-growing racial group in the Korean business activity in the United success are complex phenomena—even United States and have the highest States has been insufficiently studied. more among people from one country income; in addition, Asians now make up who start businesses in another country the largest share of recent immigrants To highlight these issues, this research (Volery, 2007). Culture, understood as a (Pew Research Social & Demographic investigated cultural and social issues that set of “understandings, interpretations, Trends, 2012). Atlanta’s population influence business formation and main- or perspectives” (Barley, 1983, p. 393) currently includes approximately 50,000 tenance among a small group of Korean common to a group (in this case, Koreans individuals of Korean descent (Pew entrepreneurs. The author of this research in the United States), is an important influ- Research Center, 2012), primarily gath- owns business ventures in Korean martial ence on business formation. For example, ered around the I-85 highway corridor arts. As an immigrant, internationally Korean-Americans often form associ- extending northeast from the center of licensed black belt master of Taekwondo ations focused on industries, such as Atlanta into the adjacent suburbs of Dora- (a Korean martial art), and entrepreneur, restaurants and laundries, to help ethnic ville, Buford, and Suwanee. According to I became interested in understanding owners as they relate to the host country’s KoreanBeacon.com, a website devoted how such business start-ups are initi- culture (Toussaint-Comeau, 2008, p.33). In to Korean-American life, Atlanta is fifth ated among Koreans in the United States addition, when they form or join a church, in its list of top Korean-American cities; generally, and how the Korean community the association can be a powerful sign of the Korean population in one local county of Atlanta reflects both similarities with isomorphism and legitimacy within the doubled during the past decade. Atlanta and differences from broader norms. host culture, in addition to the communi- reportedly also has four Korean-language ty’s religious importance. Churches are a television stations, in addition to a daily means of reinforcing Korean culture and Korean newspaper, the Atlanta ChoSun. LITERATURE REVIEW transmitting Korean cultural capital for Large stretches of one local highway are use in the new world (Oh & Kilduff, 2001). populated with many Korean retail stores Immigrants currently are regarded as one and services, designated by signs written of the most important groups in the study Such group-based solidarity yields recip- in Korean. Data thus indicate that Kore- of entrepreneurship, but more needs to rocal obligations, trust, and even oppor- an-Americans are a large and growing be understood about what drives them to tunities for marriage, and it can combine ethnic group in the United States, and the open and run their own businesses. to facilitate entrepreneurship among Atlanta suburbs are an important center ethnic group members outside their home of their economic activity. Despite these Previous findings of why ethnic entrepre- countries (Volery, 2007). Being part of a statistics, little has been written on this neurs create business have been varied. social network that shares a foreign ethnic demographic in the Atlanta area. Engaging Albanians in Macedonia were motivated origin has been shown to be empirically this demographic requires an under- by the opportunity to be independent associated with an increased likelihood standing of the networks, processes, and (Ramadani & Rexhapi, 2014). The Dutch of self-employment (Toussait-Comeau, approaches of how they start and operate in New Zealand were motivated by social 2008). For example, Hispanics and firms and the difficulties they face. acceptance and wanting to fit into the Asians are more likely to own businesses host country’s society (Vries, Hamilton, & in established gateway cities (e.g., Los The literature suggests that for a Korean Voges, 2015). Some ethnic entrepreneurs Angeles and New York) than whites and in the United States, a business start-up open businesses as a means of over- blacks (Wang, 2010). involves complexities that a native-born coming social challenges, such as limita- American does not face (Lee, 2006; Tous- tions in using the native language (i.e., to Studies have found that foreigners saint-Comeau, 2008; Yoo, 1998; Zhou & improve their language acquisition) and struggle to adjust to the host coun- Cho, 2010). The reasons include a variety being recognized as having qualifications try’s customs, are sometimes excluded of sociocultural issues, different business that allow them to contribute to society from the host culture, and, sadly, suffer and family factors, and the influence of (Assudani, 2009). Although it has offered unfair political attacks (Boissevain et al., a Korean cultural enclave. The findings useful content, previous research lacked 1990). Such conditions often result in the suggest that new ventures and small an Asian perspective. This research helps formation of geographically concentrated businesses founded by Korean immi- to fill this void by focusing on under- communities of culture and organization grants exist for many of the same reasons standing Korean businesspersons—a known as ethnic enclaves, where people as native-born American businesses.

58 Engaged Management ReView MAY 2018, VOL 1, NO. 3 of similar background can focus on their periodic contributions to a fund that can be Yoo (1998) found that these broader social own needs. used by group members to fund entrepre- networks serve different purposes than neurial ventures (Light, Kwuon, & Zhong, family networks. The former, which may According to one study of immigrants into 1990). They have established among be established through churches, local the United States from 33 different coun- Koreans in the Atlanta area (Yoo, 1998). associations, and community involve- tries, “ethnic networks have a positive However, RCAs generally do not appear to ment, typically provide business informa- effect on the decision to be self-employed be a prime source of financing for ethnic tion. The latter is the primary source of as an alternative to wage employment,” entrepreneurs (Bates, 1997). Instead, the financial capital. but the study revealed “no clear impact of source of start-up capital for most ethnic ethnic geographical concentrations on the entrepreneurs in the United States is their Yoo’s (1998) research is distinctive in self-employment decision” (Toussaint-Co- own savings or loans arranged from rela- that he found RCAs are used primarily to meau, 2008, p. 30). Chinese and Korean tives, as is true with most entrepreneurs sustain an already established business enclaves in Los Angeles are a complex mix (Basu & Goswami, 1999). rather than to start a new one. This finding of social and organizational relationships provides a possible explanation for why (Zhou & Cho, 2010). They offer entrepre- Bank loans are used infrequently by Korean Korean firms so rarely go bankrupt (Efrat, neurial opportunity and employment for entrepreneurs (Basu & Goswami, 1999), 2008): Koreans and Chinese to serve the needs and bankruptcy is rare (Efrat, 2008). Thus, of their ethnic minority, whose language Asian businesses tend to have a higher Korean entrepreneurs involved in is distinct from many others in the United proportion of equity capital. Reports of rotating credit associations (RCA) States, who tend to have quite specialized higher rates of human capital might result use the money collected to provide a customs, and who might be ignored in from a greater reliance on unpaid family competitive advantage that enables the dominant culture, despite their large labor (Efrat, 2008). When Korean workers Korean entrepreneurs to stay in numbers. Thus, in possible contrast to have a self-employed spouse, the odds of business and reduce turnover rates the finding of Toussaint-Comeau (2008), self-employment are 7.7 times greater compared with other ethnic businesses Chinese and Koreans might be more likely than they are among those without a (Yoo, 1998, p. 169). to own small businesses than some other self-employed spouse (Wang, 2010). In ethnicities in the United States. other words, husbands and wives are Finally, Yoo (1998) calls for further likely to own a business jointly. Perhaps research—a call that we believe has not Chinese and Korean enclaves also seem these two factors—lower borrowing rates yet been satisfied: to provide much more than entrepre- and joint familial efforts—explain why neurial and employment opportunities Asian businesses generally have higher There has been little study of what the (Zhou & Cho, 2010). Education for children incomes and higher rates of success than consequences of ethnic businesses are. beyond public school, social interaction other ethnic businesses (Wang, 2010). Do ethnic businesses really help the and support, and financing new ventures economic mobility of ethnic groups; have been observed (Zhou & Cho, 2010). Yoo (1998) investigated some of these how do they affect family life, such These extensive resources not only enable issues by interviewing 159 Korean entre- as gender roles and attitudes…? (Yoo, social mobility but also can attract and preneurs in Atlanta. He highlighted several 1998, p. 171). hold a strong middle class, which in turn issues: guards against the enclave’s turning into The number of Korean immigrants into a ghetto. Still, not all Asian enclaves are The higher the education, the sooner the Atlanta area has grown since Yoo’s alike. Chinese immigrants in Los Angeles the immigrant starts a business. research in 1998. Korean businesses have over time have moved into multiple neigh- Social networks established based on proliferated and have become established borhoods and become less concentrated; educational background are crucial in additional suburbs. Since the time of meanwhile, Koreatown in Los Angeles for resource mobilization for business Yoo’s study, the Internet has become an remains the largest center of the Korean operations (Yoo, 1998, p. 165). economic force that was only a novelty of community there. The question is whether communication in the 1990s. One ques- such patterns of evolution occur else- In addition, Yoo states that: tion to be addressed is how Korean entre- where (Zhou & Cho, 2010). preneurs, social networks, and enclaves a much higher proportion of those who use it now. In addition, Korean enclaves Financing, Family Involvement, and obtained business information through and networks around Atlanta might have Economic Mobility social networks went into business evolved in additional ways. Thus, among Rotating credit associations (RCAs) are [serving] the non-enclave economy, other things, I explore whether Koreans informal groups of individuals who make which has higher economic reward (Yoo, remain concentrated in an enclave, as they 1998, p. 168).

59 Engaged Management ReView MAY 2018, VOL 1, NO. 3 did at the time of Zhou and Cho’s (2010) The following research questions are engages with or in the host culture. To research. implied by the framework and are explored illustrate, four of the business owners in this study: interviewed were similar to other ethnic Although Toussaint-Comeau’s (2008) businesses in the United States, which use of U. S. census data and quantitative 1. How do Korean entrepreneurs in a tend to focus on an ethnic group largely methods permitted her to study many Korean enclave discover and exploit ignored by the dominant culture (Zhou & cities and populations of ethnic origins, the opportunities to develop business Cho, 2010). This group of enclave-serving her sample was limited to individual ventures? businesses might benefit from consulting males between the ages of 25 and 54; services targeted at market penetration of 2. How do Korean entrepreneurs describe her conclusions did not address factors, their niche product or service. their experiences in working within the such as family business formation, which enclave? is an important issue among Koreans (Lee, Meanwhile, some of the interviewees 2006; Zhou & Cho, 2010). Thus, a more 3. How do espoused Korean cultural traits expressed a desire to reach out to other micro-oriented study using qualitative and business skills affect entrepre- populations for revenue. For example, methods is expected to enrich our under- neurial success within the enclave? Ms. Lee’s Doraville restaurant had been standing and point to areas for additional highlighted in Atlanta’s largest newspaper research. and had attracted a significant number FINDINGS of non-Koreans. Ms. Noe’s martial arts Conceptual Framework This research wholesale business had sales to buyers A summary of the findings and discus- adapted a framework (see Figure 1) used in several locations both in and outside sion of them follow, based on the three by Eamsanudom and Purinruk (2010) to the primarily Korean suburbs. Ms. Nang’s research questions. explore the Korean media, movie, and clinic served local immigrants from a music entertainment wave in Thailand. variety of countries. Only these three 1. How do Korean entrepreneurs discover The explosive way in which Korean culture interviewed entrepreneurs could say and exploit the opportunities to develop (food, media, entertainment, music) influ- that non-Koreans provided an important business ventures? ences the surrounding countries has portion of their revenue. Such businesses been referred to as “The Korean Wave.” with a wider revenue base have a greater For individuals engaging in entrepreneurial The theory underlying Eamsanudom and chance of long-term success (Yoo, 1998). activity, knowing how entrepreneurs in the Purinruk’s work states that “the Korean Connecting and networking with the intent target demographic create and discover wave in Thailand can be recognized as of marketing to these ethnic entrepre- opportunities reveals ways in which poten- entrepreneurial opportunities…; while neurs might provide a means to improve tial non-enclave partners also can engage some Thai entrepreneurs can create their their financial performance, while renting this demographic for mutually beneficial opportunities from this phenomenon…, space to this demographic might result in business success or to solve some prob- other [Thai] entrepreneurs are able to increased revenue for local landlords. lems associated with how the population discover opportunities that have already existed in the business environment”. In addition, “the recognition, creation, and discovery of opportunity [presented by Figure 1: Conceptual Framework phenomena like the Korean Wave] is a way that entrepreneurs find opportuni- 4. Korean Enclave ties, depending on their perception with (Doraville, Duluth, regards to innovation…” (Eamsanudom & Suwanee) Purinruk, 2010). The framework, informed – Description by the theory, enables the investigation – Expectations of the issues highlighted by the litera- – Rules ture review, and it highlights issues ripe 1. First Generation for investigation by qualitative research Korean Business Founder in methods. Metro-Atlanta – Personal & Family Experience – Business Experience 2. Discover or 3. Exploit Business Create Business Opportunity in – Korean Culture Opportunity Korean Enclave

60 Engaged Management ReView MAY 2018, VOL 1, NO. 3 Understanding why the Korean entre- entrepreneurism. Such a consulting technologies might serve as actionable preneurs started their businesses (e.g., offering would help to educate Korean places of marketing campaigns, and need for independence, desire to pursue entrepreneurs about how to relate to each knowledge of them is helpful for those an idea, financial ambition, or lack of other in the business setting, as well as interested in serving the business needs opportunity in mainstream culture) might how to interface culturally with the host of this community. However, the Korean reveal opportunities that allow other society. entrepreneurs studied used a balance of entrepreneurs interested in engaging this both digital and print media for adver- community to collaborate for financial None of the studied interviewees admitted tising. Several interviewees said they used advancement. The motivations and abil- to using an RCA, and only the video traditional print media, including a variety ities for starting a business among the store owner mentioned getting a bank of Korean newspapers (The Korea Times) Korean entrepreneurs interviewed were loan. Although Yoo (1998) highlighted and Korean Yellow Pages. In addition, Ms. similar to business founders throughout RCAs among Korean entrepreneurs in Ko said she made announcements about the United States, regardless of ethnic the Atlanta area in the 1990s, I did not her school in her church and at local Korean origin (Shane, 2008). They were stereo- observe their use among the seven entre- festivals. Ms. Nang noted that she gave typical small businesses, just like those preneurs I interviewed. This finding is very talks about health issues in the commu- started by other Korean-Americans in important because it diverges from the nity that often brought in new patients other U.S. cities. Mr. Wang, who owned literature of previous studies of Korean to her clinic. Knowledge of the specialized a restaurant, and Ms. Ko, owner of the entrepreneurs. It suggests that lending media and other channels available to the school, complained that Koreans tend institutions might have an opportunity to entrepreneurs in this study can be used to to start too many of the same types of target Korean entrepreneurs in the Atlan- help the entrepreneurs develop actionable businesses, thereby creating too much ta-based enclaves to offer financing for marketing campaigns designed to engage competitive pressure. As most entrepre- purposes of business development. their customers. neurs do, our interviewees started businesses they understood. For example, Understanding the role of technology is 2. How do Korean entrepreneurs both Korean restaurants emerged from important for entrepreneurs in general, describe their experiences in working the founders’ lengthy experience in the and even more important for those within the enclave? industry. Ms. Lee’s restaurant was funded wanting to engage the Korean community. The more we understand about the expe- by proceeds from the sale of a prior one Korean entrepreneurs have specific inter- rience of subcultures functioning in a that she had sold two years ago. Mr. Wang faces and communication platforms that business environment, the more we can opened his restaurant after eight years of are used only by this community. Tech- uncover entrepreneurial opportunities. working at another restaurant. The two nology (e.g., the Internet and social media) An important area where the Korean founders took advantage of abandoned has created and aided some businesses entrepreneurs differ is in their use of restaurant locations in different Korean while harming others in this study. For specialized associations for education enclaves. Leasing companies interested example, online sales were a vital part of and communication in their business in hosting ethnic restaurants might look Ms. Kang’s beauty products business. She environment. Interviewees said that the to entrepreneurs who previously operated emphasized that online purchases were Korean American Association of Greater restaurants when seeking out successful efficient for customers who were inter- Atlanta provided support to many people Korean restaurant operators. ested in a speedy purchase and wanted in the local enclaves. Ms. Noe, owner of to avoid a trip to a physical store. In the martial arts business, said that small Three interviewees explicitly discussed contrast, the Internet harmed Ms. Park’s Korean-owned grocery, beauty supply, the fact that they have family businesses. video rental business. Customers’ ability laundry, and other businesses could join Ms. Lee’s daughters handle accounting to download videos resulted in decreasing associations for mutual support. She and finance while her husband is involved revenues for her physical store, and she acknowledged that she had joined a in operations. Ms. Noe and her husband provided no indication that she had been similar wholesalers’ association but even- run the martial arts business. Ms. Park and able to take advantage of the Internet tually quit because the staff assigned to her husband run the video rental store. As herself. her by the association did not know much expected of both Korean and native-born about her sort of venture. Ms. Ko, owner U.S. entrepreneurs, operating a family Specialized Korean social media were used of the school, said that older Koreans in business is common and economizes on extensively by some business owners. For the area who had little money could also human resource expenses. This finding example, Mr. Wang was excited that his join a support group. Ms. Park, owner of supports extant literature and suggests restaurant and its food had been recom- the video store, said she received help that entrepreneurs interested in engaging mended on KakaoTalk, a Korean texting from the Association in completing a this community have an opportunity to program, and on Cyword, a Korean social business loan application. Although the help to improve family dynamics through network similar to Facebook. These

61 Engaged Management ReView MAY 2018, VOL 1, NO. 3 interviewees depended heavily on Korean After researching the problems Another area where the customs of the customers from the enclaves, as they confronting her city and local Korean studied population might diverge from started and were running their business, merchants, the mayor of Duluth formed other cultures is in their use of their they preferred to be self-reliant and then a Korean Task Force in 2009, which coop- church community as a means to develop to access some level of assistance from eratively resolved several lingering issues their businesses. Based on the inter- these specialized associations. (KoreAm, 2012). As a direct result, busi- views conducted, religious organizations ness practices changed, Duluth’s police affected the entrepreneurial success of this From an entrepreneurial perspective, and force hired Korean speakers, and atti- group. Most of our interviewees attended with the intent of engaging the studied tudes changed among city officials. As Presbyterian or Catholic churches in the demographic to establish business rela- evidenced by the interviews, attitudes local enclave. Ms. Noe and Ms. Ko said tionships, understanding the locations of among Koreans changed as well. Three members of their church advised them each enclave and the perceived value of interviewees recognized that Duluth’s and others about the best businesses to each one presents vital information about attractiveness as a business location had enter, as well as where to advertise for how to interact and leverage elements of improved in recent years, while Doraville’s businesses. Ms. Park said that her church each locale. The interviews and observa- had not. would help first-generation Korean entre- tions for this study reveal that the expe- preneurs. Findings of this study about rience of Koreans in Atlanta is more like 3. How do espoused Korean cultural the role of Korean churches are similar to that of the Chinese in Los Angeles than traits and business skills affect those of past studies (Zhou & Cho, 2010). of the Koreans there. Early in the history entrepreneurial success in the enclave? For the people interviewed, churches of Korean-American migration to the Ms. Kang, owner of the beauty busi- serve as an equal or better business Atlanta area, their businesses were clus- ness, and Ms. Noe, owner of the martial support than secular Korean associations. tered in the suburb of Doraville, known for arts business, both emphasized under- This information reveals that engaging industry, warehouses, and immigrants. standing Korean culture requires under- with the religious organizations of Korean Over time, Korean businesses and homes standing Korean history—especially the entrepreneurs (i.e., use of church commu- spread over the area. Although Korean events of the twentieth century. Japan’s nities) can promote community building immigrants are still in Doraville, the Korean war and occupation of Korea resulted in while supporting entrepreneurism as well. population in Duluth, which is northeast the oppression of Korean culture. Ms. of Doraville, has increased considerably. Kang stressed that education is highly Even more recently, Suwanee, which is an valued by Koreans because it provides a LESSONS FOR PRACTICE Atlanta suburb northeast of Duluth is now way to overcome the effects of coloni- its own enclave as well. zation and oppression. Private schools Establishing mutually beneficial relation- have previously been noted as one of the ships is necessary for business owners The interviewees have differing views common types of businesses that ethnic seeking to collaborate and cooperate of these enclaves. Ms. Ko, owner of the Koreans start in the United States (Zhou with business owners in an enclave. school in Duluth, shared an opinion (also & Cho, 2010), and one such business was Korean churches offer meeting space expressed by others) that “the three included in our study. Several interviewees and sometimes classes to assist Korean places are all one.” However, Ms. Kang, mentioned the high value of education. entrepreneurs—they are a place where who owns the beauty products business information is shared among business- also in Duluth, believes that, “Duluth is Consistent with this value placed on people. Offering these churches support better than Doraville.” Such opinions might education, interviewed entrepreneurs (both members and the leadership) and reflect a preference for one’s own location. also reported on the Korean work ethic. gaining their trust would communicate Nevertheless, Ms. Park, the video rental Such descriptions support my observa- credibility and competence within this store owner in Doraville, described the tions. Still, the average entrepreneur in community. Thus, churches would be a reputation of the three Korean enclaves in the United States works more hours than good venue to network with other busi- a way that is consistent with the research- an employee of a large, established firm ness owners, to provide help as churches er’s observations: “Doraville is totally busi- (Shane, 2008). Thus, determining whether support their entrepreneur members, and ness…. Duluth has lots of restaurants and hard work is a distinguishing feature of to show the value of that help. markets, and Suwanee is for dwelling.” A specifically Korean-American entrepre- more in-depth study of the three places neurs, more than entrepreneurs generally, Learning and implementing the processes than what is attempted in this study requires further study. Such hard work, in for advertising on Korean social media might yield a more complete answer and either case, would help to guard against is another helpful lesson of this study. possibly explain the reasons for what business failure. KakaoTalk can be used much the same way some Korean immigrants perceive as as other texting services to advertise and substantial differences. target the immigrant Korean demographic.

62 Engaged Management ReView MAY 2018, VOL 1, NO. 3 Cyword can give business owners a plat- CONTRIBUTIONS TO THEORY form to advertise to and solicit feedback from the Korean community. This study contributes to theory in two primary areas. First, the study extends Another lesson to learn from this study the work of studies in Los Angeles, CA, is how to seize opportunities to provide of the same population by considering services to help Korean business owners Korean enclaves in another geographic as they assimilate. Many Korean entre- area: Atlanta, GA. This extension allows preneurs cater to the needs of the Korean comparisons to be made and opens a community alone. However, Korean entre- space for dialogue about why differences preneurs who are more confident about in the populations might have evolved. participating in the culture and using the The study generates a discourse about language of the broader, mainstream the elements of transferability, respec- environment can expand the services tive to the findings of both geographies. or commodities they offer. Mainstream The implications might serve as contex- entrepreneurs can help the Korean entre- tual framing for further studies in the preneurs to develop these skills and areas of social media, Korean culture, confidence. and the phenomena of immigrant entrepreneurism. Finally, this study reveals important life histories and structures by which Korean Second, this research suggests a more entrepreneurs relate to networks and concrete link between the espoused social capital. Churches and family rela- cultural traits and entrepreneurial success. tionships appear to be places where such The study reveals that participants capital and relationships are forged. Stra- acknowledge and believe the assumptions tegic combinations of these relational that Korean Americans’ value of educa- networks would prove invaluable for tion and their propensity for hard work establishing mutually beneficial business are necessary for success when launching relationships. Establishing and embracing new business ventures. relationships with church officials and understanding the family dynamics that exist in these kinds of Korean small-businesses can be important factors for those interested in engaging in business relationships with Korean entrepreneurs.

63 Engaged Management ReView MAY 2018, VOL 1, NO. 3 APPENDIX ON METHODS

This research used a qualitative design to any degree they wished. All interviews Data Analysis explore and compare how Korean entre- were audio recorded with the subjects’ Data analysis proceeded inductively. Nvivo preneurs in three Korean enclaves in the consent. Following each interview, contact 9.1 software was used to organize and Atlanta area affect and were affected by summary forms were completed that document the data. Four of the seven the enclaves. summarized the details of the business interviews were conducted in Korean and and entrepreneur, along with reflections translated to English using a hired trans- Sample by the interviewers. lator. Interview data were transcribed Interviews were conducted during the from the audio recordings and coded summer of 2013 with one male and six In addition to the interviews, documents using a set of a priori codes informed by female first-generation Korean entre- such as advertisements, websites, and theory and with elements represented in preneurs in each of the three recognized social media sites were collected when Figure 1. Codes included Develop (DEV), Korean communities in the northeastern available. Describe (DESC), Discover (DESC), Enclave area of Atlanta: Doraville, Duluth, and (ENC), Rotating Credit Associations (RCA), Suwanee. Table 1 summarizes the partic- and Culture (CUL). Emergent codes— ipants in the study, their type of business, Family (FAM), Education (EDU), Religion the enclave within which they operate their business, and the years of operation. Table 1. First-Generation Korean Entrepreneur Study Participants To maintain the confidentiality promised to participants, fictitious entrepreneur names are used. Most of the subjects Owner’s Name Geographic Enclave Type of Business Period of Operation were identified through the local Korean Ms. Park Doraville Video rental store 2 years Yellow Pages. The process required more than 50 telephone calls to businesses Ms. Lee Doraville Restaurant 8 years that achieved name recognition in a wide variety of industries, located in each of Ms. Kang Duluth Beauty products 2 years the three Korean enclaves. Many owners Ms. Ko Duluth Education 5 years contacted declined to be interviewed. One interview, first identified using the Korean Ms. Nang Duluth Medical clinic 7 years Yellow Pages, was secured through a Ms. Noe Duluth Martial arts wholesaler 10 years social network connection. Two interviews were conducted with owners who were Mr. Wang Suwanee Restaurant 1/4 year already known by the author. The time of operation for the businesses ranged from a few months to 10 years. Each business, except perhaps the video rental store, Table 2. Coding Sample was judged by its owners to be a viable, ongoing concern. Excerpt Code Research Question Samples Provided

Data Source “…because of the DEV How do Korean entrepreneurs Atomi Beauty The interviews took place in the entre- Internet, everyone create and discover the Products can make them opportunity to develop business preneurs’ place of business, which also [(business sales] ventures? permitted data collection based on obser- really quickly…” vation of their location, environment, signage, interiors, clients, and employees. “…business owners DESC How do Korean entrepreneurs Korean Video compete with each describe their experiences in The interviews were semi-structured. other to get benefits working within the enclave? Questions focused on business and from the Korean educational experience, cultural practices, community…” history of the business, and experiences of developing businesses in the Korean “…Koreans focus on EDU How do espoused Korean cultural Educational supplies education stuff…” traits and business skills affect and a job offer to enclave. Questions allowed respon- entrepreneurial success within teach math dents to elaborate on their answers to the enclave?

64 Engaged Management ReView MAY 2018, VOL 1, NO. 3 (REL), and Culture (CUL)—came from the The research method used multi-case provided samples of products, such as first round of open coding. Descriptive exploration with each of the seven inter- beauty supplies, food, and trinkets from subconstructs were needed to link areas views, supporting marketing documents, production. Multiple cases enable a repli- where specific examples related to emer- observation, and samples of products cation logic, in which cases are treated as gent codes. For example, subconstructs given by the interviewees; these data a series of experiments; each one serves of REL-Church, REL-Networking, REL-Biz together represented a single case study. to confirm or disconfirm inferences drawn Training, and REL-Language were used to Interviewees provided documents to from the others (Yin, 1984). Such qualita- track religious practice to business opera- show how they marketed their busi- tive explanatory research permits induc- tion. Tables were created to link excerpts ness. For some of the case studies, their tive analysis, which was my intent. from the interview transcripts associated emphasis was on online marketing. The with specific codes to the codes as they types of clients (e.g., Korean clients, vs. After the transcripts were created and the evolved in the author’s interview code- other immigrant or U.S. native clients) coding completed, the available data were book and then to the specific research and various aspects of operations (e.g., studied and assessed for themes and questions. (See Table 2 for a sample.) language spoken) were recorded during anomalies. each interview. Some interviewees

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65 Engaged Management ReView MAY 2018, VOL 1, NO. 3 ABOUT THE AUTHOR

Wallace Taylor is an entrepreneur and business person. He is currently the owner of Taylor Holdings International, Inc., and is also the Founder/CEO of The Taylor Foundation for the Arts. He received his Doctorate in Business from Georgia State University, Atlanta, GA. His entrepreneurial experience spans more than 10 years of successful initiation and implementation of private and non-profit organizations. He has worked in executive capacities in the fields of finance, technology, and real estate. His current work with participatory art in the field of public health serves a community of 2,000 students and involves contracts and collabo- ration between private, non-profit, and government entities. Through The Taylor Foundation for the Arts, his charitable outreach includes providing for the medical, educational, and financial needs of the children of the Moken tribe.in Ban Kho Nok, Thailand (Phang Nga Province), and creating collaborative partnerships with The City of Clarkston (Clarkston, GA), which is home to one of the largest concentrations of refugees in the United States.

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