IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/40610.html
   My bibliography  Save this paper

Do immigrant-owned businesses grow financially? An empirical study of African immigrant-owned businesses in the South Africa

Author

Listed:
  • Tengeh, RK
  • Ballard, HB
  • Slabbert, AS

Abstract

Given the fact that numerous challenges prohibit African immigrants from availing financial capital for the purpose of starting a business in South Africa, this paper sets out to investigate whether those that succeeded experienced a significant increment in their financial capital three or more years after start-up. This paper was designed within the quantitative and qualitative research paradigms. A triangulation of three methods was utilised to collect and analyze the data. From a quantitative perspective, the survey questionnaire was used. To complement the quantitative approach, personal interviews and focus groups were utilised as the methods within the qualitative approach paradigm. The primary data collection instrument used was the survey questionnaire which was complemented by personal interviews and focus group debates. The results revealed that the majority (71,1%) African immigrants had an estimated start-up financial in the range of R 1 000 and R 5 000, which tended to vary across the different ethnic groups studied. After three of more years, the estimated financial capital of the majority (39,3%) of the respondents moved to a new range of R 50 001 to R 100 000. Noting a disparity in capital growth exhibited by the different ethnic groups, it was found that all the Ethiopians who started with a capital within the range of R1 000-R5 000 moved into a new capital range (R50 001- R100 000) three or more years after business start-up. Although the absolute migration in terms of capital demonstrated by the Ethiopians is not into the highest capital range, they were nonetheless the only country that experienced this phenomenal growth. In terms of occupying the highest capital range (R250 001- R500 000), 11,1% of Cameroonians moved into that range followed by 7,4% of Somalians. Using an increase in financial capital (generated by ploughing back profits) as a proxy for growth, we were able to prove that these African immigrants owned business grow and the rate of growth varied across the different ethnic groups studied.

Suggested Citation

  • Tengeh, RK & Ballard, HB & Slabbert, AS, 2012. "Do immigrant-owned businesses grow financially? An empirical study of African immigrant-owned businesses in the South Africa," MPRA Paper 40610, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40610
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/40610/1/MPRA_paper_40610.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
    2. Alicia Robb & Robert Fairlie, 2009. "Determinants of business success: an examination of Asian-owned businesses in the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 827-858, October.
    3. Colombo, Massimo G. & Delmastro, Marco & Grilli, Luca, 2004. "Entrepreneurs' human capital and the start-up size of new technology-based firms," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1183-1211, November.
    4. Tengeh, Robertson Khan & Ballard, Harry & Slabbert, Andre, 2011. "A framework for acquiring the resources vital for the start-up of a business in South Africa:an African Immigrant’s Perspective," MPRA Paper 34211, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eco:journ3:2017-03-18 is not listed on IDEAS

    More about this item

    Keywords

    Immigrant entrepreneurship; immigrant-owned businesses; financial capital; financial growth; African immigrants; business start-up resources and South Africa;

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • A19 - General Economics and Teaching - - General Economics - - - Other
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • A10 - General Economics and Teaching - - General Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40610. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.