Impact of awareness and knowledge on the financial bootstrapping strategies utilized by immigrant entrepreneurs in South Africa

Abstract

Purpose of the study: This paper investigated the extent to which the awareness and knowledge of financial bootstrapping determined the techniques used by immigrant entrepreneurs in the retail clothing sector in the Cape Town metropolitan area. Methodology: A quantitative research approach was used to collect and analyze data. Through self-administered questionnaires, 135 respondents participated in the study. The data obtained were analyzed using the Statistical Package for the Social Sciences (SPSS) software, version 24. Main Findings: The results point to the fact that while the respondents made use of a wide range of financial bootstrapping techniques, there was no sufficient evidence to support the fact that this was influenced by their level of awareness and knowledge of these methods. Even the respondents with limited or no knowledge of the concept of financial bootstrapping applied the strategies in their businesses. Applications of this study: This paper may directly benefit immigrant entrepreneurs, besides informing future research and policy. Novelty/Originality of this study: This paper validates the extent to which awareness and knowledge of financial bootstrapping influences the strategies utilized by immigrant entrepreneurs in South Africa.