Intra-Africa immigrant entrepreneurship for intra-African trade and economic development: Towards a borderless Africa

Purpose: This paper aims to conceptualize intra-Africa immigrant entrepreneurship and provide evidence of its impact on intra-African trade and economic development. Immigrant entrepreneurship is often regarded as a key driver of international trade and economic development around the world; yet very little is known about intra-Africa immigrant entrepreneurship and its role in intra-African trade and economic development in Africa. Methodology: This paper applied a systematic review of literature methodology to provide insights into the role of intra-Africa immigrant entrepreneurship on trade and economic development of both host and home countries. Recommendations on how intra-Africa immigrant entrepreneurship can be used to promote intra-African trade and economic development are reviewed. Results: Policy guidelines that may increase the positive impact of immigrant entrepreneurs within the context of intra-African trade include immigration policies that attract high impact entrepreneurs, non-discriminatory support for high impact immigrant entrepreneurs as well as policies to strengthen the role of free trade agreements such as the African Continental Free Trade Area (AfCFTA). Conclusion: We conclude that African regional integration to promote intra-Africa immigrant entrepreneurship development is a conduit for Africa’s long-term and sustainable economic development. Evidence of the positive impact of intra-Africa immigrant entrepreneurship on intra-African trade and economic development is scant. At the same time, the notions of intra-Africa immigrant entrepreneurship are not well documented in the literature. This paper provides arguments for the promotion of intra-Africa immigrant entrepreneurship as a tool to increase intra-African trade and economic development

The role played by business development services providers (BDSs) in improving access to finance by start-up SMEs in the Buffalo City Municipality

Small and medium enterprises (SMEs) are very important to employment creation, poverty alleviation and the sustainable economic development of a nation. Encouraging SMEs, especially start-ups is crucial for sustainable economic growth. However, the failure rate of start-up SMEs in South Africa is one of the highest in the world. In reviewing the literature of the causes of the failure of start-up SMEs, access to finance emerged as a prime challenge. Start-up SMEs find it very difficult to obtain external finance from commercial banks and venture capitalists. The national and provincial governments in South Africa have realised that access to finance is a major constraint to the growth and survival of start-up SMEs and have put in place certain measures to improve access to finance by start-up SMEs. One of the primary measures put in place by government to improve access to finance by start-up SMEs is the provision of Business Development Service by some government agencies. This research investigates the role of Business Development Services Providers (BDSs) in improving access to finance for start-up SMEs. Questions arise as to why the failure rate of start-up SMEs is high in South Africa despite all these government measures aimed at assisting start-ups to access finance. Empirical research was conducted to investigate the role of BDS in improving access to finance by start-up SMEs. The instrument used for data collection was the self-administered questionnaire. The statistical analyses included descriptive statistics, T-test, ANOVA, correlation and regression analysis. The Cronbach‟s alpha was used as a measure of reliability. The results of the study revealed that: Access to finance is still a major problem hindering the survival of start-up SMEs. There is a lack of awareness of BDS providers and their services by the majority of start-up SMEs. There is a significant positive relationship between the use of BDS by start-up SMEs and success in accessing finance. Start-up SMEs that are aware of BDS do make use of the services. The results suggest that BDS are important to improving access to finance by start-up SMEs. However, there is a need to build awareness and encourage the use of BDS by start-up SMEs to improve their access to finance and ultimately increase their chances of survival

Business models of successful Foreign-Owned Small and Medium Enterprises for Small Business Development in South Africa

Abstract: SMEs are widely recognised as the engines of economic development and progress of all nations, yet there is a high failure rate among SMEs in both developed and developing countries. Although there are numerous studies on the challenges resulting in the high failure rate of SMEs in South Africa, there is scant research on foreignowned SMEs operating in the country. This study developed a substantive grounded theory on the business models applied by successful foreign-owned SMEs in South Africa, with the aim of sharing this knowledge with the broader SME sector in the country. The result of this research is thus a grounded theory entitled Business Models of Successful Foreign-Owned SMEs. This research was founded on the theoretical approach proposed by Corbin and Strauss (2008). Data was collected from a sample of 42 foreign-owned SMEs using multi-case interviews. The findings revealed seven business model types applied by these SMEs, namely, Consultancy Business Models, Retail and Wholesale Business Models, Family Business Models, Self-Managed Business Models, Import and Export Business Models, Craft/Skill Business Models and Service Business Models. A conceptual analysis of these models revealed six common concepts. These were used to form an integrative framework of business models of successful foreign-owned SMEs using grounded theory techniques. This framework shows the interrelationships between value propositions and value mapping strategies, market penetration and market retention strategies, lean thinking, challenges specifically facing foreign-owned SMEs, survival, growth and expansion mechanisms and knowledge sharing mechanisms. These were the key constructs informing the business models of successful, foreign-owned SMEs in South Africa...Ph.D. (Business Management