A socioeconomic analysis of Ethiopian migrant entrepreneurs in South Africa

  • 1322 Views
  • 160 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

The objective of study was to assess and evaluate factors that affect entrepreneurial activities carried out by formal and informal migrant entrepreneurs from Ethiopia who conduct business operations in the nine provinces of South Africa. The study was descriptive and exploratory in nature. The design of the study was descriptive and cross-sectional. Data were collected from a stratified random sample of 3,045 migrant entrepreneurs from Ethiopia who conduct business in the nine provinces of South Africa. Stratified random sampling was used for the selection of eligible entrepreneurs. The study found that about 76% of businesses operated by migrant entrepreneurs from Ethiopia were profitable, whereas the remaining 24% of businesses were not profitable. About 32% of entrepreneurs were attracted to South Africa due to better infrastructural facilities. About 25% of entrepreneurs were attracted to South Africa due to better socioeconomic conditions. About 78% of migrant entrepreneurs had conducted business in South Africa for five years or more at the time of data collection. About 34% of businesses paid tax to the South African Revenue Service (SARS) on a regular basis. About 38% of businesses employed at least one South African in their businesses. About 85% of entrepreneurs stated that they had good working relationships with members of the various local communities in South Africa.

view full abstract hide full abstract
    • Table 1. General characteristics of migrant entrepreneurs (n = 3,045)
    • Table 2. Difficulties experienced by migrant entrepreneurs (n = 3,045)
    • Table 3. Level of education and access to finance (n = 3,045)
    • Table 4. Perception on level of support to migrant entrepreneurs (n = 3,045)
    • Table 5. Employment of local South Africans by migrant entrepreneurs (n = 3,045)
    • Table 6. Top five significant two-by-two associations from cross-tab analyses (n = 3,045)
    • Table 7. Results from binary logistic regression analysis (n = 3,045)
    • Africa Check (2018). Where do South Africa’s international migrants come from?
    • Akanle, O., Alemu, A. E., & Adesina, J. O. (2016). The existentialities of Ethiopian and Nigerian migrants in South Africa. International Journal of African Renaissance Studies, 11(2), 139-158.
    • Antoni, A., & Umejesi, I. (2014). Small towns and small enterprises: A study of workplace relations in a rural town in South Africa. Journal of Economics, 5(2), 141-152.
    • Atkinson, J., & Storey, D. J. (2016). Employment, the small firm and the labour market. New York: Routledge Library Editions: Small Business.
    • Alonso, J. A. (2011). International Migration and Development: A review in light of the crisis. New York: United Nations.
    • Bekele, E., & Worku, Z. B. (2008). Factors that affect the long-term survival of micro, small and medium enterprises in Ethiopia. South African Journal of Economics, 76(3), 548-568.
    • Birch, D. (1979). Employment, the small firm and the labour market. New York: Routledge.
    • Blalock, H. M. (1967). Toward a Theory of Minority-Group Relations. New York: John Wiley & Sons.
    • Rodriguez, A. J. (2011). International migration and development: A review in light of the crisis. New York: United Nations.
    • Bailey, T. & Waldinger, R. (1991). Primary, secondary, and enclave labor markets: A training systems approach. American Sociological Review, 1(2), 432-445.
    • Bakri, A., Zaman, N. Q., Kamarudin, H., Dom, M. M., & Alias, Z. (2014). The physical and cultural attributes of ethnic Enclave: A basis for conservation. Oxford: Oxford University Press.
    • Campbell, E. H., Kakusu, J. D. A., & Musyemi, I. (2006). Livelihoods in the region: Congolese refugee livelihoods in Nairobi and the prospects of legal, local integration. Refugee Survey Quarterly, 25(2), 93-108.
    • Campbell, E. H. (2006). Urban refugees in Nairobi: Problems of protection, mechanisms of survival, and possibilities for integration. Journal of Refugee Studies, 19(3), 396-413.
    • Cookson, S. T., Abaza, H., Clarke, K. R., Burton, A., Sabrah, N. A., Rumman, K. A., Odeh, N., & Naoum, M. (2015). Impact of and response to increased tuberculosis prevalence among Syrian refugees compared with Jordanian tuberculosis prevalence: Case study of a tuberculosis public health strategy. Journal of Conflict and Health, 9(1), 18-23.
    • Dana, L. (2007). Humility based economic development and entrepreneurship among the Amish. Journal of Enterprising Communities: People and Places in the Global Economy, 1(2), 142-154.
    • Dana, L. (2008). Handbook of research on ethnic minority entrepreneurship: A co-evolutionary view on resource management. Cheltenham: Edward Elgar Publishing.
    • Dalhammar, T. (2004). Voices of entrepreneurship and small business immigrant enterprises in Kista, Stockholm. Stockholm: Royal Institute of Technology.
    • Dawson, A. (2010). A case study of impact measurement in a third sector umbrella organization. International Journal of Productivity and Performance Management, 59(6), 519-533.
    • Fatoki, O., & Patswawairi, T. (2012). The motivations and obstacles to immigrant entrepreneurship in South Africa. Journal of Social Science, 32(2), 133-142.
    • Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective. London: Pearson.
    • Hosmer, D. W., & Lemeshow, S. (2013). Applied logistic regression analysis. New York: John Wiley & Sons.
    • Kim, K. C., & Hurh, W. M. (1985). Ethnic resources utilization of Korean immigrant entrepreneurs in the Chicago minority area. International Migration Review, 1(1), 82-111.
    • Knight, F. H. (1921). Risk, uncertainty and profit. Boston: Houghton Mifflin Company.
    • Landau, L. B. (2006). Protection and dignity in Johannesburg: Shortcomings of South Africa’s urban refugee policy. Journal of Refugee Studies, 19(3), 308-327.
    • Levy, P. S., & Lemeshow, S. (2013). Sampling of populations: methods and applications. New York: John Wiley & Sons.
    • Lindley, A. (2010). Leaving Mogadishu: Towards sociology of conflict-related mobility. Journal of Refugee Studies, 23(1), 2-22.
    • Marx, K. (1967). Capital: A critique of political economy. London: International Publishers Company.
    • Mbuli, B. N. (2008). Poverty reduction strategies in South Africa. Pretoria: University of South Africa.
    • Mitchell, M. I. (2012). The Perils of Population Movements in International Relations: New directions for rethinking the migration-conflict nexus. Edmonton: University of Alberta.
    • Molla, M., Mitiku, I., Worku, A., & Yamin, A. E. (2015). Impacts of maternal mortality on living children and families: A qualitative study from Butajira, Ethiopia. Journal of Reproductive Health, 12(1), 3-12.
    • O’rourke, N., & Hatcher, L. (2013). A step-by-step approach to using SAS for factor analysis and structural equation modeling. Cary, North Carolina, USA: SAS Institute.
    • Rath, J. (2006). Entrepreneurship among migrants and returnees: Creating new opportunities. International Symposium on International Migration and Development, 1(2), 1-10.
    • Salaff, J. W. (2002). Ethnic entrepreneurship, social networks and the enclave. Toronto: Kluwer Academic Publishers.
    • Santarelli, E., & Tran, H. T. (2013). The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam. Small Business Economics, 40(2), 435-458.
    • Schumpeter, J. (1934). The theory of economic development. Cambridge: Harvard University Press.
    • Simmel, G. (1950). The Sociology of Georg Simmel. Vienna: Free Press.
    • Sombart, W. (1914). The Jews and Modern Capitalism. New Brunswick: Transaction.
    • Statistics South Africa (2017). Business Register for the financial year 2015/2016. Pretoria: Statistics South Africa.
    • Statistics South Africa (2016). Results from the Community Survey of 2016.
    • Statistics South Africa (2015). Facts and figures. Retrieved from http:// www.statssa.gov.za/ (accessed on January 20, 2018).
    • Statistics South Africa (2014). Tourism report of 2014.
    • Trujano, C. Y. A. (2008). Indigenous Routes: A framework for understanding indigenous migration. London: Hammersmith Press.
    • United Nations Department of Economic and Social Affairs (DESA) (2013). International Migration Policies Government Views and Priorities. New York: United Nations.
    • United Nations Department of Economic and Social Affairs (DESA) (2016). Statistics.
    • United Nations High Commission for Refugees (UNHCR) (2017). Global trends: Forced displacement in 2016.
    • United Nations High Commission for Refugees (UNHCR) (2015). Country operations profile: South Africa statistical snapshot.
    • United Nations High Commission for Refugees (UNHCR) (2013). Southern Africa sub-regional overview.
Related Articles

  • The growth strategies of a global pharmaceutical company: a case study of Aspen Pharmacare Holdings Limited

    Victoria Margaret Hodgon , Muhammad Ehsanul Hoque doi: http://dx.doi.org/10.21511/ppm.15(1-1).2017.12
    Problems and Perspectives in Management Volume 15, 2017         Issue #1 (cont.)         pp. 248-259 Views: 2868 Downloads: 3148 TO CITE АНОТАЦІЯ

    Given the rapid and sustained growth of Aspen over the past decade, the main aim of this study is to identify and analyze the growth strategies, adopted by Aspen over the period from 2004 to 2014. The research method used was a descriptive study through a single case study of Aspen by analyzing secondary data in the form of publicly available company reports and presentations, as well as financial results, issued between 2004 and 2014. The study finds that, guided by strategic and visionary leadership, Aspen adopted a number of growth strategies including (i) organic growth, as a key factor in creating incremental value for Aspen and its stakeholders, (ii) inorganic growth, in the form of carefully planned and well executed acquisitions, aligned to the Group strategy, (iii) extending territorial coverage through global expansion, particularly into emerging pharmaceutical countries, and (iv) ongoing investment in production capabilities as a means of achieving a strategic advantage. Despite the challenges of intense competition, restrictive legislation, pressure on medicine prices, currency volatility and market specific risks, Aspen has delivered double-digit earnings growth to its shareholders for 16 consecutive years.

  • Executive compensation and firm performance: a non-linear relationship

    Rijamampianina RasoavaORCID doi: http://dx.doi.org/10.21511/ppm.17(2).2019.01
    Problems and Perspectives in Management Volume 17, 2019         Issue #2         pp. 1-17 Views: 2843 Downloads: 288 TO CITE АНОТАЦІЯ

    In order to ensure profitability for shareholders, optimal contracting recommends the alignment between executive compensation and company performance. Large organizations have therefore adopted executives remuneration systems in order to induce positive market reaction and motivate executives. Complex compensation schemes are designed by Boards of Directors using strong pay-performance incentives that explain high levels of executive pay along with company size, demand for management skills and executive influence. However, the literature remains inconclusive on the pay-performance relationship owing to the various empirical methods used by researchers. Additionally, there has been little effort in the literature to compare methodologies on the pay-performance relationship.
    Using the dominant agency theory framework, the purpose of this study is to establish and examine the relationship between firm performance and executive pay. In addition, it intends to assess the characteristic of model specifications commonly adopted. To this aim, a quantitative analysis consisting of three complementary methods was performed on panel data from South African listed companies. The results of the main unrestricted first difference model indicate a strong non-linear relationship where the impact of current and previous firm performance on executive pay can be observed over 2 to 4-year period providing support to the optimal contracting theoretical perspective in the South African business context. In addition, CEO pay is more sensitive to firm performance as compared to Director pay. Lastly, although it affects executive pay levels, company size is not found to improve the pay-performance relationship.

  • Antecedents of attitudes towards and usage behavior of mobile banking amongst Generation Y students

    Marko van DeventerORCID , Natasha de Klerk , Ayesha Bevan-DyeORCID doi: http://dx.doi.org/10.21511/bbs.12(2).2017.08
    Banks and Bank Systems Volume 12, 2017         Issue #2         pp. 78-90 Views: 2176 Downloads: 974 TO CITE АНОТАЦІЯ

    Despite the benefits that mobile banking has to offer, coupled with positive mobile penetration rates, the use of mobile devices to perform banking transactions and access financial information is not as widespread as expected. The significantly sized Generation Y cohort is a rewarding market segment for retail banks. In South Africa, however, this cohort’s mobile banking adoption is largely under-researched. Understanding the antecedents that positively influence Generation Y students’ attitudes towards and usage behavior of mobile banking will assist retail banks in their efforts to tailor their business and marketing strategies effectively towards this cohort, and in doing so, foster increased acceptance of their mobile channels. As such, the purpose of this study was to extend the technology acceptance model (TAM) and determine the influence of perceived ease of use, relative advantage, subjective norms, perceived behavioral control, perceived integrity and the perceived system quality of mobile banking on South African Generation Y students’ attitudes towards and usage behavior of mobile banking. Following a descriptive research design, self-administered questionnaires were completed by a non-probability convenience sample of 334 students registered at the campuses of three registered public South African universities located in the Gauteng province. Data analysis included correlation analysis and structural equation modeling. The findings suggest that while perceived ease of use, perceived integrity and the perceived system quality predict Generation Y students’ mobile banking usage behavior, subjective norms, perceived behavioral control and the perceived relative advantage of mobile banking predict attitudes towards mobile banking, which, in turn, predict their mobile banking usage behavior.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management