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That immigration leads to the emergence of ethnic neighborhoods in North American cities is not a new phenomenon in urban geography. New arrivals often participate in the development of local economies by creating small businesses to serve the needs of their compatriots. They also participate in the transformation of centrally located neighborhoods in large cities. The emergence of the Polish neighborhood on Roncesvalles Street in Toronto and the Jewish neighborhood of Côte-des-Neiges in Montreal exemplify this pattern. However, the importance of ethnic economies in such neighborhoods has gone largely unexplored. This paper examines the relationship between geographic location, immigrant entrepreneurs and the role of small ethnic businesses in two Canadian urban areas: Côte-des-Neiges in Montréal and Parkdale in Toronto. Data from interviews with local businesspeople in these two areas are used to examine the pertinence of the concepts of ethnic/open and ethnic/closed markets. [ABSTRACT FROM AUTHOR]