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Investigating the Foreign-Ownership Influence on the Growth of Firms in Southern African Development Community

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  • Bataung I. Raithule

    (National University of Lesotho, Lesotho)

  • Kalebe Moses Kalebe

    (National University of Lesotho, Lesotho)

Abstract

The study investigates the influence of foreign ownership on firm growth in the Southern African Development Community (SADC). Firm-level data from World Bank Enterprise Surveys for the years 2010–2022 and logistic regression are used to obtain results. Based on the findings, there is a positive influence of foreign ownership on firm growth in the SADC region. These results hold for both measures of firm growth, namely, growth in employment and growth in sales. This then implies that holding all else equal, foreign-owned firms in SADC are more likely to experience growth compared to locally-owned firms. Therefore, the creation of an enabling policy environment that stimulates growth, particularly for locally-owned firms, such as the development of policy frameworks that are supportive of innovation, competitiveness, and entrepreneurship, is imperative. Such frameworks will facilitate the growth aspirations of locally-owned firms operating in the SADC region.

Suggested Citation

  • Bataung I. Raithule & Kalebe Moses Kalebe, 2024. "Investigating the Foreign-Ownership Influence on the Growth of Firms in Southern African Development Community," European Journal of Business and Management Research, European Open Science, vol. 9(5), pages 86-93, September.
    • Handle: RePEc:epw:ejbmr0:v:9:y:2024:i:5:id:52456
    DOI: 10.24018/ejbmr.2024.9.5.2456
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