Immigrant entrepreneurship with a focus on human and social capital as determinants of success: evidence from South Africa

Abstract

PurposeAs a consequence of global changes, the landscape of immigration is changing. This brings opportunities for researching more nuanced aspects related to immigrant entrepreneurship in new contexts. The purpose of this paper is to establish the extent to which Africa-to-African immigrants leverage their social capital and human capital towards improving the success of their entrepreneurial ventures.Design/methodology/approachFirst-generation immigrant entrepreneurs within the Johannesburg area in South Africa were surveyed (n = 230). Instrument validity and reliability was first established, and then the hypotheses were tested using multiple regression analyses.FindingsHypotheses are supported insofar African immigrant entrepreneurs in South Africa rely on their structural and resource-related dimensions of social capital to achieve entrepreneurial success. Furthermore, human capital in terms of both work experience and entrepreneurial experience was found to be a significant predictor of entrepreneurial success.Research limitations/implicationsThere is value in developing policies that promote African immigrant entrepreneurs with higher levels of human and social capital. These African immigrants have the potential to increase the national skills base and knowledge required for successful entrepreneurship development in South Africa.Originality/valueWhile both human capital and social capital have been associated significantly with the generic entrepreneurship literature, this paper provides an empirical contribution by focusing on the relevance of these constructs in the context of immigrant entrepreneurship from an African emerging market perspective.