Informal foreign small business enterprises: contribution and experiences.

Abstract

Informal migrant small business enterprises have increased dramatically in Tugela Ferry Town. The study examines the contribution of informal migrant enterprises in employment creation and enhancement of economic growth in Tugela Ferry Town. The study also seeks to gain insights into the experiences that migrant enterprises encounter in their business activities and to understand if migrants are job seekers or job creators. This dissertation explores the livelihood activities of informal migrant small business enterprises. The concept of livelihood strategy was used to develop the theoretical framework that guides the research. The study makes use of the qualitative research method. Fifteen in-depth interviews were conducted with informal migrant small business enterprises, who were all male. The research was conducted in Tugela Ferry Town. The findings of the study suggest that informal migrant business enterprises make an economic contribution to the development of the town. Informal migrant small business enterprises encounter challenges in accessing the finance and capital necessary to start their entrepreneurial businesses. Amongst the problem encountered by informal migrant small business is the high rent for both accommodation and business, discrimination due to nationality by local people. The research concludes by recommending that the business training programmes that are arranged by the municipality of local small business enterprises be open to informal migrant small business enterprises as well. Local communities should also be educated about the positive role of migrant enterprises in the town.