Abstract

The objective of study was to assess and evaluate factors that affect entrepreneurial activities carried out by formal and informal migrant entrepreneurs from Ethiopia who conduct business operations in the nine provinces of South Africa. The study was descriptive and exploratory in nature. The design of the study was descriptive and cross-sectional. Data were collected from a stratified random sample of 3,045 migrant entrepreneurs from Ethiopia who conduct business in the nine provinces of South Africa. Stratified random sampling was used for the selection of eligible entrepreneurs. The study found that about 76% of businesses operated by migrant entrepreneurs from Ethiopia were profitable, whereas the remaining 24% of businesses were not profitable. About 32% of entrepreneurs were attracted to South Africa due to better infrastructural facilities. About 25% of entrepreneurs were attracted to South Africa due to better socioeconomic conditions. About 78% of migrant entrepreneurs had conducted business in South Africa for five years or more at the time of data collection. About 34% of businesses paid tax to the South African Revenue Service (SARS) on a regular basis. About 38% of businesses employed at least one South African in their businesses. About 85% of entrepreneurs stated that they had good working relationships with members of the various local communities in South Africa.

Highlights

  • IntroductionThe study was conducted in order to assess and evaluate socioeconomic factors that are known to affect entrepreneurial activities conducted by migrant entrepreneurs of Ethiopian origin in South Africa

  • About 25% of entrepreneurs were attracted to South Africa due to better socioeconomic conditions

  • The study was conducted in order to assess and evaluate socioeconomic factors that are known to affect entrepreneurial activities conducted by migrant entrepreneurs of Ethiopian origin in South Africa

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Summary

Introduction

The study was conducted in order to assess and evaluate socioeconomic factors that are known to affect entrepreneurial activities conducted by migrant entrepreneurs of Ethiopian origin in South Africa. Data were collected from a stratified random sample of 3,045 formal and informal migrant entrepreneurs of Ethiopian origin who conduct business in the nine provinces of South Africa. One of the specific objectives of the study was to identify the key attractions and motivations of migrant entrepreneurs from Ethiopia who come to South Africa to live as entrepreneurs. The other specific objective of study was to assess and evaluate how well migrant entrepreneurs of Ethiopian origin were doing in South African cities and townships. There is a shortage of studies that could be used for assessing and evaluating the working and living conditions of migrant entrepreneurs of Ethiopian origin in South Africa. The study aims to fill the gap by collecting empirical data from migrant entrepreneurs

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