Defining success of African immigrant-owned small businesses in Cape Town, South Africa

Abstract

Taking Cape Town, South Africa as a case, this paper seeks to investigate the factors that define the success of small businesses owned by African immigrants. The paper reviews literature on immigrant entrepreneurs, immigrant-owned ventures and social capital. A random sample of available immigrant small businesses owners was taken where semistructured interviews were conducted, as well as the use of self-administered questionnaires. Secondary data (literature review) have unveiled that social networks are vital in the formation and growth stages of an immigrant-owned business, as networks provide the necessary support. Ultimately, social networks supplement the survival chances of an immigrant-owned venture. Furthermore, primary data (empirical results) have revealed that most of the businesses are mainly run by males, while longevity and employment creation are defining factors of success to African immigrant-owned small businesses in Cape Town. Following the empirical findings and their analysis, recommendations have been formulated.