Essential Resources that African Immigrant Entrepreneurs Access to Start Up their Business in South Africa

Authors

  • Bernard Lama Ngota Nelson Mandela University, Gqeberha (Port Elizabeth), South Africa
  • Elroy Eugene Smith Nelson Mandela University, Gqeberha (Port Elizabeth), South Africa
  • Ayanda Pamella Deliwe University of Fort Hare, Eastern Cape, South Africa

DOI:

https://doi.org/10.24191/jibe.v10i2.6062

Keywords:

African immigrant entrepreneur, Entrepreneurial resource, Financial capital, Human capital, Resources, Knowledge capital

Abstract

Entrepreneurship is a crucial element of economic growth and development, and immigrant entrepreneurs make a substantial contribution to the economy of the host country. Nevertheless, African immigrant entrepreneurs often face uncommon obstacles in accessing essential resources to establish and grow their businesses. Regardless of the increasing study on immigrant entrepreneurship, there is a need for more research that examines the distinct obstacles and experiences of African immigrant entrepreneurs in accessing resources to establish and develop their businesses in South Africa. This research aims to explore the essential resources that African immigrant entrepreneurs’ access to venture into businesses in South Africa. Particularly, the research seeks to investigate the financial, physical, information, and human resources that they access. The research used a qualitative research methodology, employing semi-structured interviews with 12 African immigrant entrepreneurs (owners/managers) operating in various sectors in South Africa. The data was analysed utilising content analysis, in which chunks of related data were connected to existing themes. The results showed that African immigrant entrepreneurs in South Africa encounter obstacles in accessing essential resources, involving financial capital, physical resources, information capital and human capital. Nonetheless, African immigrant entrepreneurs use several approaches to overcome these obstacles, such as depending on personal savings, networks, and family support. The research contributes to the current literature on immigrant entrepreneurship by highlighting the particular obstacles and experiences of African immigrant entrepreneurs in South Africa. The results have implications for practitioners, policymakers, and researchers seeking to promote and support immigrant entrepreneurship in this area.

References

Adomako, S., Mole, K. F., Franklin, R. J., & Murnieks, C. Y. (2023). Entrepreneurial passion and venture profit: Examining the moderating effects of political connections and environmental dynamism in an emerging market. International Small Business Journal, 41(2), 204–232. https://doi.org/10.1177/02662426221085182

Ahmed, S. K. (2024). The pillars of trustworthiness in qualitative research. Journal of Medicine, Surgery, and Public Health, 2(1), 1–4. https://doi.org/10.1016/j.glmedi.2024.100051

Aldrich, E. W., & Waldinger, R. (1990). Ethnicity and entrepreneurship. Annual Review of Sociology, 16, 111–135. https://doi.org/10.1146/annurev.so.16.080190.000551

Alemayehu, B. Z., Steffens, P., & Gordon, S. R. (2023). The formation and role of religious social capital in driving entrepreneurial action. Journal of Business Venturing Insights, 20, e00426. https://doi.org/10.1016/j.jbvi.2023.e00426

Ashourizadeh, S., Saeedikiya, M., Aeeni, Z., & Temiz, S. (2022). Formal sources of finance boost innovation: Do immigrant entrepreneurs benefit as much as natives? Entrepreneurial Business and Economics Review, 10(2), 41–59. https://doi.org/10.15678/EBER.2022.100203

Ashourizadeh, S. (2016). Immigrant and native entrepreneurs’ sources of financing for startup: With a moderating effect of wealth in the country. The Journal of Small Business Innovation, 19(2), 1–15.

Barnett, W., Greve, H., & Park, D. (1994). An evolutionary model of organizational performance. Strategic Management Journal, 15(2), 11–28. https://doi.org/10.1002/smj.4250150903

Bonet, F. P., Armengot, C. R., & Martín, M. A. G. (2011). Entrepreneurial success and human resources. International Journal of Manpower, 32(1), 68–80. https://doi.org/10.1108/01437721111121233

Bouka, F., Geel, M., & Vedder, P. (2022). Entrepreneurship: An attractive career path for immigrant vocational students in the Netherlands? The role of negative and positive stimulating factors. International Journal of Intercultural Relations, 88, 22–31. https://doi.org/10.1016/j.ijintrel.2022.03.003

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa

Bygrave, W. D., & Zacharakis, A. (2011). Entrepreneurship (2nd ed.). John Wiley & Sons.

Caniëls, M. C. J., & Motylska-Kuźma, A. (2023). Entrepreneurial intention and creative performance: The role of distress tolerance. International Entrepreneurship and Management Journal. https://doi.org/10.1007/s11365-023-00863-4

Cervelló-Royo, R., Devece, C., & Tejero, C. B. G. (2023). Economic freedom influences economic growth and unemployment: An analysis of the Eurozone. Economic Research-Ekonomska Istraživanja, 36(2), 1–16. https://doi.org/10.1080/1331677X.2023.2175007

Chang, Y. Y., Sanchez-Loor, D. A., Hsieh, H. C., & Chang, W. S. (2023). How aging affects opportunity-necessity entrepreneurship: Demographic and perceptual view. Australian Journal of Management, 48(1), 67–89. https://doi.org/10.1177/03128962221101084

Chimucheka, T., & Mandipaka, F. (2015). Challenges faced by small, medium and micro enterprises in the Nkonkobe Municipality. International Business & Economics Research Journal, 14(2), 309. https://doi.org/10.19030/iber.v14i2.9114

Chrysostome, E. (2010). The success factors of necessity immigrant entrepreneurs: In a search of a model. Thunderbird International Business Review, 52(2), 137–152. https://doi.org/10.1002/tie.20320

Clausen, T. H. (2006). Who identifies and exploits entrepreneurial opportunities. Centre for Research on Socio-Cultural Change.

Clydesdale, G. (2008). Business immigrants and the entrepreneurial nexus. Journal of International Entrepreneurship, 6(3), 123–132. https://doi.org/10.1007/s10843-008-0024-8

Conz, E., Magnani, G., Zucchella, A., & De Massis, A. (2023). Responding to unexpected crises: The roles of slack resources and entrepreneurial attitude to build resilience. Small Business Economics. https://doi.org/10.1007/s11187-022-00718-2

Creswell, J. W. (2014). Qualitative, quantitative, and mixed methods approaches (4th ed.). Sage.

Dabić, M., Vlačić, B., Kiessling, M., Caputo, A., & Pellegrini, M. (2023). Serial entrepreneurs: A review of literature and guidance for future research. Journal of Small Business Management, 61(3), 1107–1142. https://doi.org/10.1080/00472778.2021.1969657

Dabić, M., Vlačić, B., Paul, J., Dana, L. P., Sahasranamam, S., & Glinka, B. (2020). Immigrant entrepreneurship: A review and research agenda. Journal of Business Research, 113, 25–38. https://doi.org/10.1016/j.jbusres.2020.03.013

Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331. https://doi.org/10.1016/S0883-9026(02)00097-6

Dias, Á., & Patuleia, M. (2023). (Re)defining entrepreneurship in a post-pandemic context. Social Sciences, 12(3), 1–3. https://doi.org/10.3390/socsci12030193

Duan, C., Kotey, B., & Sandhu, K. (2021). A systematic literature review of determinants of immigrant entrepreneurship motivations. Journal of Small Business & Entrepreneurship. https://doi.org/10.1080/08276331.2021.1997490

Duan, C., Kotey, B., & Sandhu, K. (2022). Towards an analytical framework of dual entrepreneurial ecosystems and research agenda for transnational immigrant entrepreneurship. Journal of International Migration and Integration, 23(3), 473–497. https://doi.org/10.1007/s12134-021-00847-9

Duan, C. (2023). Towards a conceptual framework and research agenda for immigrant entrepreneurs, entrepreneurship, and enterprises. Journal of Business Ecosystems, 4(1), 1–24. https://doi.org/10.4018/jbe.322774

Evansluong, Q., Grip, L., & Karayianni, E. (2023). Digital ethnicity affordances: From a liability to an asset in immigrant entrepreneurship. International Journal of Entrepreneurial Behavior & Research. https://doi.org/10.1108/IJEBR-02-2022-0207

Fairlie, R. W., & Lofstrom, M. (2015). Immigration and entrepreneurship. In Handbook of the economics of international migration (pp. 877–911). Elsevier. https://doi.org/10.1016/B978-0-444-53768-3.00017-5

Fatoki, O. (2014). Immigrant entrepreneurship in South Africa: Current literature and research opportunities. Journal of Social Sciences, 40(1), 1–7.

Fatoki, O. (2020). Personality traits and performance of immigrant-owned small businesses. Journal of Reviews on Global Economics, 9(1), 321–330. https://doi.org/10.6000/1929-7092.2020.09.31

Fozia, M., & Ranabahu, N. (2022). A disadvantage to an advantage? Immigrant entrepreneurs’ use of effectuation in business start-up and development in the Kingdom of Saudi Arabia. In L. P. Dana, N. Khachlouf, A. Maâlaoui, & V. Ratten (Eds.), Disadvantaged minorities in business (pp. 153–175). Springer. https://doi.org/10.1007/978-3-030-97079-6_7

Ge, J., & Li, T. (2019). Entrepreneurial resources, complementary assets, and platform sustainability. Sustainability, 11(1), 1–20. https://doi.org/10.3390/su11164359

Granovetter, M. S. (1983). The strength of weak ties: A network theory revisited. Sociological Theory, 1(2), 201–233. https://doi.org/10.2307/202051

Hammersley, M. (2013). What is qualitative research? Bloomsbury.

Harahap, M., Suherlan, S., Rijal, S., & Ausat, A. (2023). Defining the business philosophy foundation for sustainable business education. Journal on Education, 5(4), 15776–15783. https://doi.org/10.31004/joe.v5i4.2690

Hurst, E., & Lusardi, A. (2004). Liquidity constraints, household wealth, and entrepreneurship. Journal of Political Economy, 112(2), 319–347.

Johnson, S., & Rasulova, S. (2016). Qualitative impact evaluation: Incorporating authenticity into the assessment of rigour (Working Paper No. 45). Bath Papers in International Development and Wellbeing.

Kazlou, A., & Klinthäll, M. (2019). Entrepreneurial response to changing opportunity structures: Self-selection and incomes among new immigrant entrepreneurs in Sweden. International Journal of Entrepreneurial Behavior & Research, 25(5), 859–879. https://doi.org/10.1108/IJEBR-02-2018-0090

Kazlou, A., & Wennberg, K. (2023). How kinship resources alleviate structural disadvantage: Self-employment duration among refugees and labor migrants. Journal of Enterprising Communities: People and Places in the Global Economy, 17(1), 16–45. https://doi.org/10.1108/JEC-03-2020-0025

Khelil, N., Smida, A., & Zouaoui, M. (2018). What does it mean to fail in entrepreneurship? Rereading the. Revue Internationale P.M.E., 31(3), 35–66. https://doi.org/10.7202/1054418ar

Khoa, B. T., Hung, B. P., & Hejsalem-Brahmi, M. (2023). Qualitative research in social sciences: Data collection, data analysis and report writing. International Journal of Public Sector Performance Management, 12(1–2), 187–209. https://doi.org/10.1504/IJPSPM.2023.132247

Khosa, R. M., & Kalitanyi, V. (2015). Migration reasons, traits and entrepreneurial motivation of African immigrant entrepreneurs towards an entrepreneurial migration progression. Journal of Enterprising Communities: People and Places in the Global Economy, 9(2), 132–155. https://doi.org/10.1108/JEC-07-2014-0011

Kim, P., Aldrich, H. E., & Keister, L. A. (2006). Access (not) denied: The impact of financial, human and cultural capital on becoming a nascent entrepreneur. Small Business Economics, 27(1), 5–22. https://doi.org/10.1007/s11187-006-0007-x

Kor, Y. Y., Mahoney, J. T., & Michael, S. C. (2007). Resources, capabilities and entrepreneurial perceptions. Journal of Management Studies, 44(7), 1187–1212. https://doi.org/10.1111/j.1467-6486.2007.00727.x

Lloyd, W. (2019). Entrepreneurial motivation: The impact of cultural capital on the “who” is motivated. International Journal of Business and Globalisation, 23(1), 139–152. https://doi.org/10.1504/IJBG.2019.100791

Maharaj, B. (2009). Migrants and urban rights: Politics of xenophobia in South African cities. L’Espace Politique, 3(8), 1–15. https://doi.org/10.4000/espacepolitique.1402

Markova, S., & Perkovska-Mircevska, T. (2009). Financing options for entrepreneurial ventures. Economic Interferences, 11(26), 597–604.

Mathews, J. (2002). A resource-based view of Schumpeterian economic dynamics. Journal of Evolutionary Economics, 12(1–2), 29–55. https://doi.org/10.1007/s00191-002-0106-z

Mejia-Dorantes, L., Paez, A., & Vassallo, J. M. (2012). Transportation infrastructure impacts on firm location: The effect of a new metro line in the suburbs of Madrid. Journal of Transport Geography, 22, 236–250. https://doi.org/10.1016/j.jtrangeo.2011.09.006

Minja, J. J., Charles, G., & Mbura, O. K. (2023). The influence of co-production of entrepreneurship training programmes on the creative transfer of entrepreneurship skills. Journal of Global Entrepreneurship Research, 13(4), 1–17. https://doi.org/10.1007/s40497-023-00349-1

Munkejord, M. C. (2017). Immigrant entrepreneurship contextualised: Becoming a female migrant entrepreneur in rural Norway. Journal of Enterprising Communities, 11(2), 258–276. https://doi.org/10.1108/JEC-05-2015-0029

Ngota, B. L., Rajkaran, S., & Mang’unyi, E. E. (2018). Factors impeding African immigrant entrepreneurs’ progression in selected small and medium enterprises: Evidence from a local municipality in South Africa. South African Journal of Business Management, 49(1), 1–9. https://doi.org/10.4102/sajbm.v49i1.10

Ngota, B. L., Rajkaran, S., & Mang’unyi, E. E. (2019). African immigrant entrepreneurs in South Africa: Exploring their economic contributions. Entrepreneurial Business and Economics Review, 7(4), 33–56. https://doi.org/10.15678/EBER.2019.070403

Ngota, B. L., Smith, E. E., & Deliwe, A. P. (2025). Understanding the importance of home-country skills of African immigrant entrepreneurs in South Africa. Entrepreneurial Business and Economics Review, 13(2), 47–61. https://doi.org/10.15678/EBER.2025.130203

Ngota, B. L., & Rajkaran, S. (2016). Challenges facing African immigrant entrepreneurs: A case of South Africa. Lambert Academic Publishing.

Nkealah, N. (2011). Commodifying the female body: Xenophobic violence in South Africa. Africa Development, XXXVI(2), 123–135. https://doi.org/10.57054/ad.v36i2.975

Olutuase, O. S., Brijlal, P., & Yan, B. (2023). Model for stimulating entrepreneurial skills through entrepreneurship education in an African context. Journal of Small Business & Entrepreneurship, 35(2), 263–283. https://doi.org/10.1080/08276331.2020.1786645

Omorede, A., & Axelsson, K. (2022). Exploring the immigrant entrepreneurs and their entrepreneurial engagement. The Journal of Entrepreneurship, 31(2), 330–363. https://doi.org/10.1177/09713557221096879

Penrose, E. (1959). The theory of the growth of the firm. Blackwell.

Raijman, R., & Tienda, M. (2003). Ethnic foundations of economic transactions: Mexican and Korean immigrant entrepreneurs in Chicago. Ethnic and Racial Studies, 26(5), 783–801. https://doi.org/10.1080/0141987032000109032

Ratten, V. (2023). Entrepreneurship: Definitions, opportunities, challenges, and future directions. Global Business and Organizational Excellence, 42(5), 79–90. https://doi.org/10.1002/joe.22217

Robb, A. M., & Fairlie, R. W. (2021). Determinants of business success: An examination of Asian-owned businesses in the USA. Journal of Population Economics, 22(3), 827–858.

Rondani, B., Andreassi, T., & Bernades, R. C. (2013). Microfoundations for open innovation: Is effectuation a valid approach for open innovation managers? Revista Gestão & Conexões, 2(1), 94–115. https://doi.org/10.13071/regec.2317-5087.2013.2.1.4968.94-115

Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson.

Saunders, M. N. K., Lewis, P., Thornhill, A., & Bristow, A. (2023). Understanding research philosophy and approaches to theory development. In Research methods for business students (9th ed., pp. 128–174). Pearson.

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). John Wiley & Sons.

Shane, S. A., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226.

Shenton, A. K. (2004). Strategies for ensuring trustworthiness in qualitative research projects. Education for Information, 22(2), 63–75. https://doi.org/10.3233/EFI-2004-22201

Souissi, M. (2025). Towards a better understanding of the factors of entrepreneurial failure: An exploratory study among entrepreneurs in the Sfax region, Tunisia. Journal of International Business, Economics and Entrepreneurship, 10(1), 17–32. https://doi.org/10.24191/jibe.v10i1.5497

Stevenson, H. H., & Jarillo, J. C. (1990). A paradigm of entrepreneurship: Entrepreneurial management. Strategic Management Journal, 11, 17–27.

Tengeh, R. K. (2007). A business framework for the effective start-up and operation of area, South Africa [Unpublished doctoral dissertation]. Cape Peninsula University of Technology.

Tengeh, R. K., & Nkem, L. (2017). Sustaining immigrant entrepreneurship in South Africa: The role of informal financial associations. Sustainability, 9(8), 1–16. https://doi.org/10.3390/su9081396

Thomas, B., & Tahir, N. S. (2019). The effect of corporate social responsibility towards consumer buying behaviour: A study among universities students. Journal of International Business, Economics and Entrepreneurship, 4(2), 8. https://doi.org/10.24191/jibe.v4i2.14310

Thornhill, S., & Amit, R. (2003). Learning about failure: Bankruptcy, company age and the resources-based view. Organization Science, 14(5), 497–509. https://doi.org/10.1287/orsc.14.5.497.16761

Urban, B., Murimbika, M., & Mhangami, D. (2022). Immigrant entrepreneurship with a focus on human and social capital as determinants of success: Evidence from South Africa. Journal of Entrepreneurship in Emerging Economies. https://doi.org/10.1108/JEEE-08-2021-0306

Urban, B., & Naidoo, R. (2012). Business sustainability: Empirical evidence on operational skills in SMEs in South Africa. Journal of Small Business and Enterprise Development, 19(1), 146–163. https://doi.org/10.1108/14626001211196451

Von Bloh, J., Mandakovic, V., Apablaza, M., Amoros, J. E., & Sternberg, R. (2019). Transnational entrepreneurs: Opportunity or necessity driven? Empirical evidence from two dynamic economies from Latin America and Europe. Journal of Ethnic and Migration Studies, 46(10), 2008–2026. https://doi.org/10.1080/1369183X.2018.1559996

Waldinger, R., Aldrich, H., & Ward, R. (Eds.). (1990). Ethnic entrepreneurs: Immigrant business in industrial societies. Sage.

Published

20-10-2025

How to Cite

Ngota, B. L., Smith, E. E., & Deliwe , A. P. (2025). Essential Resources that African Immigrant Entrepreneurs Access to Start Up their Business in South Africa. Journal of International Business, Economics and Entrepreneurship, 10(2), 123-142. https://doi.org/10.24191/jibe.v10i2.6062