Personal factors influencing the success of immigrant small business owners in the eThekwini metropolitan area

Abstract

The South African economy is characterised by a high unemployment rate, low growth rate, and widespread poverty. immigrant-owned businesses can address some of these economic problems as they contribute to economic growth, job creation, and alleviation of poverty in the community. However, many of these businesses fail due to various reasons. This study seeks to identify and empirically investigate the personal factors influencing the success of immigrant small business owners in the eThekwini metropolitan area. By identifying and empirically testing such factors, valuable recommendations can be put forward to immigrant small business owners on how to succeed in the market and subsequently contribute to economic growth. The study aims to investigate personal factors influencing the success of immigrant small business owners in the eThekwini metropolitan area in terms of the following research objectives: entrepreneurial competence, leadership style, and self-confidence. A quantitative research design and a convenience non-probability sampling method will be utilised for the study. A questionnaire will be designed as a measuring instrument and physically distributed to immigrant entrepreneurs to measure the hypothesised relationship of the identified research objectives. The researcher utilised Raosoft software to calculate the sample size for the study (i.e. required sample size of 377 based on a 5% margin of error, 95% confidence level, and 50% response distribution). The researcher utilised both open-ended and fixed-alternative questions to collect data. Data will be recorded on a 5-point Likert scale, analysed using the SPSS version 27 statistical package and exploratory factor analysis will be performed to test the validity of the measuring instrument. Also, the hypothesised relationships will be evaluated through regression analysis. The findings of the study concluded that entrepreneurial competence and selfconfidence have a positive relationship with the success of immigrant small business owners. Therefore, it is evident that personal success factors play a vital role in enhancing the success of immigrant small business owners. Furthermore, the findings also concluded that there is no correlation between leadership style and the success of immigrant small business owners, however, the respondents perceived that leadership style is important for business growth. Therefore, future research can be conducted to determine how leadership style impacts the success of SMEs. According to the findings of the study, most immigrant entrepreneurs within eThekwini metropolitan area are operating informal businesses, therefore, the South African policymakers must develop regulations that will govern all foreign-owned businesses within the country such as developing policies regarding the formalisation of these businesses, support programs, training and funding opportunities that can be explored by immigrant entrepreneurs. Immigrant small businesses are continuing to dominate in local communities of South Africa, and it should be investigated how immigrants identify entrepreneurial opportunities that are neglected by the natives.