Abstract
The small and medium enterprises (SMEs) are important to the South African economy and social development. This paper discusses the case of Ga-Rankuwa Township SMEs, causes of their proven failure and the methods used by the SMEs owned by people who came from foreign countries and operating in this township. These foreign SMEs did not have access to loans for business. On the other hand the local ones could apply for the loans but many did not know how and where. The locals then forfeited the opportunity, but still refused to partner with foreign ones who could assist them. The foreign ones were more successful in using business skills and knowledge to nurture their SMEs. They also contributed to the township’s economy by employing local people. Recommendations include that local SMEs should partner with foreign ones to develop synergies, and that the SME agency, Small Enterprise Development Agency (SEDA) should design policies for foreign SME access to business loan funds by ensuring and enforcing local empowerment as part of their loan access package
Highlights
In the South African township residential areas, SMEs are usually small grocery stores that sell everyday small household items
Research has sought to understand the dynamics of this competition and the impact of the apparent dominance of foreign-owned SMEs over their South African counterparts
The South African government has encouraged the local entrepreneurs through enabling legislation
Summary
In the South African township residential areas, SMEs are usually small grocery stores that sell everyday small household items. The instability of locally-owned SMEs led to foreign entrepreneurs realizing an opportunity for competition. Since 1994 when South Africa gained democracy, there has been SME competition between South African operators and immigrant run businesses (Liedeman, 2005). This study compares foreign and South African entrepreneurs by drawing on case evidence from Ga-Rankuwa Township on the northwestern side of Pretoria city in the Gauteng Province of South Africa. Many foreigners spotted and embraced open opportunities of development Among the opportunities they treasure is the availability of items they could use to start their own businesses. The objective of the study is to compare the business models of locally owned and managed SMEs with the foreign managed ones in Ga-Rankuwa. The study that was undertaken wanted an answer to the question: “Why are foreign SMEs more successful?”
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
