Factors influencing African immigrant entrepreneurship in South Africa: a case of selected craft markets in Cape Town

Abstract

A significant proportion of African immigrant entrepreneurs are pushed by the need to survive and pulled by the many tourists in South Africa, resultant in African immigrant entrepreneurs turning to the craft business. Although many studies have been conducted on craft businesses in general, little information exists on factors influencing African immigrant entrepreneurship in South Africa. The study utilized the pull and push theory of migration to determine and understand these influencing factors. This study focused on four craft markets in the Cape Town area—Greenmarket Square, Stellenbosch, Franschhoek and Hout Bay. The population of the study comprised all African immigrants at the selected craft markets and the municipal managers responsible for managing these selected markets. The study utilized a mixed method approach to collect and analyze data. Questionnaires were administered to 122 African immigrant entrepreneurs and indepth interviews were conducted with the three municipal managers responsible for the four selected craft markets. Quantitative data were analyzed separately using Statistical Packages for Social Sciences software, and face-to-face interviews were analyzed bymeans of content analysis. The study found that themain reasons why African immigrant entrepreneurs entered the craft business were the need to survive, the many tourists in South Africa, previous experience in the craft industry, education, and because many South Africans were not involved in the craft business.