Practices in operating a small business in a host community: a social capital perspective of Chinese immigrant entrepreneurship within the South African business context

Abstract

This study explores how Chinese immigrant entrepreneurs who own small retail businesses in the Eastern Cape province of South Africa draw from their social capital to operate their small businesses. The study followed a qualitative research design in which 21 in-depth interviews were conducted. The findings show that the Chinese immigrant entrepreneurs used different forms of social capital to operate their small retail businesses in the host business environment. Drawing from their social capital, the Chinese immigrant entrepreneurs were able to respond to opportunities and challenges in the host business environment. Social capital embedded in relationships and networks between the Chinese immigrant entrepreneurs and different stakeholders was central to the operations of the small retail businesses.