An Investigation into the Financial Bootstrapping Methods Used by Immigrant Entrepreneurs in South Africa

Abstract

This study investigates the financial bootstrapping methods used by immigrant entrepreneurs in South Africa. Access to formal debt and equity markets is limited for immigrant entrepreneurs. Data was collected through the use of self-administered questionnaire in a survey. Factor analysis identified five bootstrapping methods used by immigrant entrepreneurs. The methods are owners' resources, management of accounts receivable, sharing resources, delaying payment and minimising investment. Recommendations on how immigrants can improve the use of financial bootstrapping are suggested.