Exploratory study : how do Somali shop owners (SSO) succeed in running businesses in Soweto : a South African perspective
- Authors: Mokitlane, Ofentse Clifford
- Date: 2014
- Subjects: Business enterprises, Foreign -- South Africa , Small business -- Management , Small business -- South Africa , Foreign workers -- South Africa , Employment in foreign countries , Entrepreneurship -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:842 , http://hdl.handle.net/10962/d1015653
- Description: This is a qualitative study which seeks to understand how Somali shop owners run successful businesses in the township of Soweto in South Africa. This research report has three sections, namely (1) the academic paper which comprises a shortened literature review, the research method, findings, and the discussion; (2) an extended literature review and (3) the research methodology. It is important to mention that these three sections are related and not necessarily stand-alone sections. Despite the hostilities faced by the Somali shop owners from the host communities in South Africa, it is notable that they are successful, small-sized entrepreneurs in most townships of South Africa (SA). Previous research on Somalis has predominantly focused on their assimilation into the societies in their host countries, and on how they are led into self-employment because of the unfavourable labour markets in the host country. In this vein, there is a need to understand how they run successful businesses in the townships of SA. This study seeks to answer the following research question: How Do Somali Shop Owners Succeed in Running Businesses in Soweto, South Africa (SA)? In pursuit of answers to the above research question, this study was confined to three locations in Soweto, namely Orlando West, Chiawelo and Rockville which have a relatively high number of Somali entrepreneurs who have been in operation for longer than three years. This qualitative study explored the multiple perspectives of reality of Somali shop owners. Purposively, 14 Somali shop owners were identified initially using purposive sampling. Subsequently, theoretical sampling was used to identify Somali shop owners who were interviewed regarding how they successfully run their businesses in the locations of Orlando West, Chiawelo and Rockville in the township of Soweto. A total of eighteen semi-structured, in-depth and face-to-face interviews were conducted with these shop owners as a means of gathering data to the point of saturating their perspectives. Data collection ceased when new perspectives were no longer evident as interviewees were being repetitive. Open-coding and constant comparison was used to analyse the data. The findings of the study show that ethnicity plays a predominant role in the success of the Somali shop owners. The intra-ethnic networks and trust-based support systems are pivotal to how Somali shop owners run successful businesses in Soweto. The key findings manifested showed that various forms of support came from Somali communities, family and fellow countrymen which were also central to their success. Another key finding showed that Somali shop owners run their businesses by complementing, rather than predominantly competing with the other local businesses, which ultimately differentiates them in this way. The study also revealed that responsiveness to local customer needs by enhancing the value of their business to the locality is also characteristic of how Somali shop owners build customer loyalty. This study contributes to our understanding of how Somali entrepreneurs conduct successful businesses in a hostile host country. The findings have implications for business development training and programmes which support immigrant entrepreneurs. The findings may also be extended to inform how business development programmes would be designed to equally support local entrepreneurs.
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An investigation into problems facing small-to-medium sized enterprises in achieving growth in the Eastern Cape : enhancing the strategy for developing small 'growth potential' firms in the Eastern Cape
- Authors: Sha, Shafeek
- Date: 2006
- Subjects: Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1173 , http://hdl.handle.net/10962/d1002789 , Small business -- Management , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape
- Description: As the world economy continues to move towards increased integration, some of the greatest opportunities for Small-to-Medium Sized Enterprises (SMEs) will derive from their ability to participate in the global marketplace. It is generally accepted that SMEs are becoming increasingly important in terms of employment, wealth creation, and the development of innovation. However, there are considerable doubts about the quality of management in this sector with policy-makers suggesting that there are particular weaknesses in innovation, a lack of financial acumen, marketing, entrepreneurial flair, practical knowledge, and human resource management. As a result, many firms do not reach their full potential and fail to grow. According to organisational life cycle models, the introductory phase is particularly important since it is generally known and accepted that there is a high mortality rate of SMEs within the first two years. Given this high failure rate, it becomes vital to research the factors/characteristics/management abilities that are required to enable the SME to survive and indeed progress to the growth phase of the organizational life cycle. This research seeks to investigate the internal and external factors that are consistent in the success of SMEs who have reached the growth phase. A significant contribution to the enhancement of the growth potential of a firm will be made through the understanding of these factors.
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