GroshLink

It was chilly as the heating system malfunctioned in the Pietist Center, but Don Kraybill offered to generate a lot of hot air :-) I have a lot of notes and I apologize that they drift into a more listing form toward the end, but its all worth the read. Next presentation in the series: Bush Fever: Amish & Old Order Mennos in the 2004 Presidential. ... incredible material for tomorrow!

Much of the material in this presentation is from Lancaster County, but it is typical of other settlements. More traditional settlements in rural areas have a slower rate of change. But at a sizeable settlement of 60 church districts in Arthur, IL, I talked with an Amish businessman who does Research and Development (R&D) of garage doors by going to trade shows. Apparently, the last thing that changes in the style of a home is the garage door. The businessman never went to high school, doesn't own a computer or automobile. This is just one example of how barefoot farmers have moved off the farm and developed successful businesses beyond the seasonal produce stand along the road (note: check out BB Grocery Outlet "Chain").

60% of Lancaster Amish are now in business. This shift occurred in the last 20-5 years. Why did it develop? What will be the consequences? What are the sources of success (creativity, ingenuity, less than 5% fail in the first 5 years; national business standards 65% fail)?

Amish settlements can be found in 28 states and in two Canadian territories (Ontario and Manitoba). Their population doubles every 20 years. They are divided into 2 dozen subgroups including the Beachy Amish, Swartzentruber, Swiss, and New Order, which display much diversity in dress, technology, style of home

The Amish set a religious canopy over all society, which as a member of the Anabaptist movement, involves a separation from the world. The 20th century growth in business, even though it is regulated by the Church, strains separation because retail stores "Welcome in" outsiders. To give you some numbers, in the 1950s 95% of the Amish were farming. In the 1970-80s, land prices began to rise, suburbs spread, and farming acres decline while the Lancaster Amish Population continued to grow (note: 7500 in 1970, 16,500 in 1990, when there were only 500 in 1900).

Options for the Amish included migration (note: central PA, KY, WI settlements have been a dribble), subdivide farms (note: trend in 1970-80s), intensive farming (note: raising cherry tomatoes, cucumbers, watermelons, sweet potatoes, eg., Leola Produce auction), factory work (very few), smaller families (not an option, 8-9 to 6-7), and higher education (not an option).

The demographic crises involved both the external (scarce land, land prices, urbanization, tourism) and the internal (high birth rate, high retention, rapid growth, regional attachment). They choose microenterprises with Amish control (of conditions of work and the financial resources/profits) over migration and the lunch pail threat (factory work) which threatened exposure to outside culture, friends and ties; fringe benefits cutting mutual depedence of church aid for insurance and retirement); jobs away from family with the loss of parental role models; and inflexible work schedule to Amish subculture (e.g., just about to 6-10 Amish wedding every Tuesday and Thursday in this season; 2nd Christmas, 2nd Easter, Ascension Day).

First steps to micro-enterprises: 1950-60s repair and modification shops for horse drawn machinery (to keep on the farm and in farming), working in trailer factories (didn't go well because of slow down in economy and layoffs), small carpentry crews, roadside stands (e.g., baked goods, produce, Victorian style doll houses, shed building manufacturing is one of the most successful operations on the edge of the farm).

Growth of micro-enterprises was facilitated by low investment (vs. millions necessary to buy land/materials/animals/seed), add-on to farms (e.g., father retires at 50 and son farms while the father sets up a shop and employs other sons), relevance of farm values (e.g., weather report crucial to each day, flexibility, transferred into small business shop), cultural resources, and development of infrastructure. Today there are 1600-1800 businesses today in Lancaster.

Types of micro-enterprises include: woodworking/construction (e.g., kitchen shops, furniture, dining room set), machine shops (e.g., Amish farm equipment and beyond, K-mart metal display cases for batteries, New Holland Industrial Park pressing the envelope), trades (e.g., plumbing, masonry, painting), retail stores (e.g., Dover, DE; Indianapolis, IN; etc), urban markets, and roadside stands (e.g., roller blades).

Micro-enterprise venues include: sidelines/seasonal, cottage industries (3-4 family members at home, e.g., greenhouse), larger stand-alone shops, mobile crews and markets (100 construction crews in Lancaster), and an industrial park.

Ethnicity (Amishness) of micro-enterprises: segregated (thick ethnicity, father and 2 sons with fiberglass Amish buggy business), integrated (thin ethnicity, urban market), or mixed (blend).

Cultural Forces involved in micro-enterprises: resources (social and cultural capital such as big families, Amish neighbors nearby to help) versus constraints (taboos and restrictions, no electricity/automobiles/TV advertising/liquor sales) which lead to Amish style micro-enterprises and then speak back into the cultural forces and constraints.

More on cultural resources: work ethnic (e.g., strong, boss works on the floor, only in the office early/late, enjoyed, sense of community), extended family (children, 75-85 first cousins with 5 miles of original family), community ties (savings and load association, also borrow from banks), mutual aid (if shop burns down, cleaned up and rebuilt with a lot of volunteer time), and entrepreneurial values (just get the job done with little concern about beaurocracy).

Finances for micro-enterprises: start-up capital from family, sales volume (note: annual sales 1-5 million, when too high the business is sold to the English), sales to ethnic (20%) and public, patterns of ownership, profits (Amish millionaires don't show off, but a number exist).

Entrepreneurs: 93% grew up on farm, 8th grade education, self-taught (apprenticeship, occasional short course at PSU), 20% women (e.g., mail order dried flowers).

Labor: 80% Amish, informal apprenticeship, ethnic recruitment network, labor savings (e.g., social security, health insurance, pension; 40% payroll savings), Child Labor Bill passed in 2004 (10 years of controversy, different than child abuse in urban environment).

Constraints: size (concern about pride, influence; no more than 30 employees in separate shops), no Sunday sales, cultural calendar, taboo on product types, education limits (i.e., nothing beyond 8th grade education: only farming or business, no law/medicine), no motor vehicles, no public electricity, no telephone, no computer, and no litigation.

Compromises include Amish electricity, use of electricity when business location not owned by Amish, 3rd party vendors, shared English ownership and English employees.

Products sold to Amish and English markets, Lancaster and national, Subcontracts and Owner Control.

Distribution via advertising, dealer networks, trade shows (e.g., SunLine Solar), Lancaster County Business Directory (90% of Amish businesses listed), and websites via a third party.

Amish micro-enterprises have only a 5% failure rate, whereas the national rate is 65%. Bankruptcy is strongly discouraged and 3 church-appointed trustees will intervene in a business.

External factors for success: 1. strong regional economy, 2. vast Eastern markets, 3. tourist markets, 4. positive perceptions of products (e.g., Amish furniture), 5. local government support, 6. not necessary to pay social security/workers compensation.

Internal factors for success: 1. entrepreneurial agricultural values, 2. strong work ethic, 3. austerity leading to low overhead, 4. frugal life style, 5. extended family labor, 6. labor pool with shared values, 7. apprenticeship training, 8. educational taboos, 9. small scale spreads ownership, 10. small scale raises satisfaction, 11. tech taboos breed innovation, 12. product quality and value, 12. uniqueness of product lines, 13. mutual aid, 14. flexible ordung, 15. flexible calendar.

Social impact of the development of business: 3 social classes (farmers, business owners, day laborers), conflict of shop versus farm (more flexible in shop), exposure to outside world in the business world, influence of English language/technology, and the impact of rational values and worldview. Changes have already begun to occur in family and childrearing subculture, gender roles, small church districts (more face-to-face interaction), influence of owners in Church (what if entrepreneurs can outclass bishops), speed of social change, more leisure among the business owners, social impact: wealth to buy farms (competing with land developers through the leverage of cash from business), wealth increase in community, participation in politics/civic life (e.g., 2004 election drew business into conversation). What will happen in the 2nd and 3rd generation of micro-enterprising?

Lessons: 1. Education doesn't make much difference. Micro-enterprise is more about creativity and community resources. The value of family and community, i.e., it takes a village.

In summary this is a remarkably successful mini-industrial revolution with a powerful long-term impact in changing dramatically the nature and the landscape of Amish communities in North America in the midst the dynamic tension of cultural resources and resistance.

PS. Other links to presentation by Kraybill: Lessons of Love, From the Buggy to the Byte.