African Immigrant Entrepreneurs in South Africa: Exploring Their Economic Contributions

Abstract

The objective of this article is to determine the economic opportunities created by African immigrant entrepreneurs in South Africa. Furthermore, it is to investigate the impact that Afrophobia has on economic opportunities created by African immigrant entrepreneurs in South Africa. Research Design & Methods:The text utilizes a mixed-methods approach that incorporates both self-administered questionnaire and qualitative in-depth interviews. Through a random sampling approach and snowballing technique, this study combines data from questionnaires of 153 participants and in-depth interviews with 12 respondents. Findings: The findings confirm that immigrant SMEs fill economic gaps by contributing to innovation and technology developments. Such commercial migrants pay taxes, thus adding to the economy of the country. Challenges faced by African immigrant entrepreneurs are not few but centre on Afrophobic and xenophobic attacks which negatively impact business operations and economic growth. Implications & Recommendations: Sound measures by the government regarding immigration could minimize existing tensions, stimulate local skills development, technology development and transfer, new business opportunities, and improve inclusion into the globalised economy. Contribution & Value Added: This study is unique in that it contributes to our knowledge and literature on immigrant entrepreneurship while particularly providing insights into African immigrants' contributions to a national economy. Article type:research article

Assessing immigrant entrepreneur’s contribution to entrepreneurial development: A case of small retailers in the Mangaung, Free State province

“…Majority of immigrant business owners were between the ages of 20-39 (60%) and only 30% were over the age of 40. This is supported by a study on African immigrant entrepreneurs in SA by Ngota et al (2019) who found that there were younger male immigrant entrepreneurs who operated businesses in SA than their female counterpart. The percentages shown above show that young men with tertiary qualifications run their own business at an early age, which is something lacking for their locals' counterparts in the MMM area.…”

“…Their prices are very low compared to other shops; they are good in savings & investment, they buy in bulk for discount.' (Participant 06, female, security) Ngota et al (2019) corroborate this by asserting that immigrant entrepreneurs brought competitiveness and innovation. However, it could be understood from these findings that entrepreneurial development may be gained through immigrant entrepreneur's contributions.…”

“…This might be influenced by the fact that oreigners are unable to find employed easily in SA, hence they usually end up creating businesses instead. Furthermore, Ngota et al (2019) posit that with the increased shortage of jobs amidst increasing trends of migration into SA over the years, small businesses are becoming the only smart option. In agreement, Fatoki (2010) affirms that there has been a growing development of businesses owned by immigrants in SA.…”

“…Therefore, it can be concluded that immigrant entrepreneurs who already play a crucial role in creating new ventures and employment may give an opportunity to local people who work for them to gain business experience. Immigrant entrepreneurs evidently stimulate economic growth in a positive way (Ngota et al 2019). For that reason, they can be used as a stimulus for entrepreneurship development in MMM.…”