Drawing a sample of 135 successful African immigrant-owned businesses, this paper sets out to investigate how their owners acquired the necessary capital for start-up and growth thereafter. The paper was designed within the quantitative and qualitative research paradigms, in which a triangulation of three methods was utilised to collect and analyze the data. The paper revealed that although African immigrants are characteristically at a disadvantage when it comes to accessing capital from formal financial institutions, this does not stop them from (...) pursuing entrepreneurial activities. At the start-up stage, they typically resort to personal savings, business credit, family credit, and loans from informal financial institutions. According to the ability to raise capital, we found that a varying range of start-up capital was utilised, which tended to vary across the different ethnic groups studied. Once started, we found that the sources of additional finance available to these immigrants did not change significantly. They conventionally turned to friends, co-ethnics and self-help financial associations to ‘feed’ their need for further funding. (shrink)

Using incoming revenues and the associated costs that underpin the concept of breakeven analysis, this article investigates the business survival strategies of immigrant-own-businesses in the context of African immigrants in the Cape Town Metropolitan Area of South Africa, and proposes a framework for the start-up survival of these businesses. The study was designed within the quantitative and qualitative research paradigms. A triangulation of three methods was utilised to collect and analyze the data. The research revealed that African immigrant entrepreneurs face (...) a range of challenges when starting their businesses and again as they try to grow or stay afloat. Furthermore, the study indicated that African immigrants rely more on certain entrepreneurial attributes as they seek innovative solutions to the problems that they encounter relating to business. As a business survival strategy, these immigrants develop a number of unconventional initiatives aimed at increasing sales revenue while minimising cost. (shrink)

Although immigrants have been found to be particularly likely to engage in entrepreneurial activities in their host countries, very often their ability to do so is restricted by a range of challenges, including having limited access to finances. As a consequence, proactive immigrant entrepreneurs establish informal financial associations, which are known as stokvels in South Africa, in order to compensate for the general lack of available capital for their business ventures. Accordingly, this paper has sought to ascertain the role, which (...) stokvels play in the startups and the growth of Cameroonian-owned businesses, and also the strategies which they employ. A mixed-methods approach was adopted to conduct the study and purposive sampling was employed to obtain a research sample of 123 participants to respond to the survey questionnaire and 10 to take part in one-on-one in-depth interviews. The data was analysed through the use of the Statistical Package for Social Sciences (SPSS) software, which generated findings in the form of descriptive statistics. The results suggest that most emerging immigrant entrepreneurs struggle to obtain sufficient startup capital. It also emerged from the findings that stokvels played an equally significant role in providing the capital, which was necessary for the growth of their businesses. On the basis of the assumption that widening access to finance would improve both the startups and the growth of immigrant-owned businesses, the authors of this paper advocate for inclusive policy initiatives, which consider the unique characteristics of the immigrant entrepreneur. In addition, it is hoped that this paper will make a valid contribution to the discourse concerning inclusive finance and be of interest to policymakers and academics. (shrink)