Challenges to the growth of African immigrant-owned businesses in selected craft markets in Cape Town, South Africa

Abstract

This paper sought to ascertain the factors that impact on the growth of African immigrant-owned craft businesses in selected craft markets. The purposive and snowball non-probability sampling technique was deemed to be the best method to use in this study to select the respondents. The study utilized a mixed method approach to collect and analyze data. Questionnaires (quantitative) were administered to 122 African immigrant entrepreneurs, and in-depth interviews (qualitative) were conducted with the three municipality managers responsible for the four selected craft markets. The quantitative data were analyzed using the Statistical Packages for Social Sciences (SPSS) software, and face-to- face interviews were analysed by content analysis. Pushed by the need to survive and pulled by the many tourists in South Africa, African immigrant entrepreneurs turned to the craft business Seasonal and irregular nature of trade, competition, and xenophobia were noted to be the main growth challenges. Recommendations were made to the relevant stakeholders. Keywords: African immigrant entrepreneur, business growth, survivalist businesses, craft markets, SMEs. JEL Classification: M10, M13