Turkish Entrepreneurs in the European Union: A Political-Institutional Analysis

Abstract

People of Turkish origin constitute the single largest ethnic group in the European Union. Many Turkish entrepreneurs began as labour migrants during the post-war boom (mostly to West Germany) and were perceived as short-term gastarbeiter (guestworkers). Economic recession during the mid-1970s saw the dismantling of the guestworker system amidst high and persistent rates of unemployment in Europe. Under these circumstances, far from returning ‘home’, many ex-guestworkers and their children sought alternatives in self-employment and became a significant force in retail, fast-food and garment production. This chapter considers the relevance of the case study for wider debates about the relationship between the political-institutional framework and ethnic minority enterprise. Whilst most of the entrepreneurs have either worked in Europe for decades, or were born in Germany, the Netherlands or Britain, most lack citizenship, and this has important implications for the development of enterprise activities. It is also the case that whilst many small enterprises operate outside legal structures or in contravention to them, many of them are also subordinated to other larger companies operating on a formal basis. Transnationalism and the globalisation ‘from below’ thesis attach primacy to immigrants acting as their own agency in economic development.