Small Business In The United States: A Field Study of Three Chinese Restaurants in Midland, Texas

Abstract

The purpose of this study is to examine the business operation of three Chinese restaurants in Midland, Texas. Through interviews from the restaurant owners and the study of local history, this paper shows that Chinese restaurants in Midland encountered the same struggles and difficulties in business operations that historians of small business have found among other ethnic groups. Because the capital required to start a restaurant is less compared to other small businesses, operating a restaurant business has always been an attractive career path for many Chinese immigrants. From the 1950s to the present, the business operation of Chinese restaurants has evolved due to growing competition. As a result, a new generation of Chinese restaurants emerged. With better financial resources and formal business models, the new generations of Chinese restaurant entrepreneurs are able to compete with other franchise restaurants. Although small family-owned restaurants are struggling to maintain their position in the market, many of these restaurants are able to avoid bankruptcy by employing family members to limit costs.