Factors influencing foreign-owned micro businesses: a case study of Durban.

Abstract

The study investigated the factors influencing foreign-owned micro businesses in Durban. The study developed a conceptual framework which will help to indicate various factors that impact on foreign-owned micro businesses of African extraction. As a result, these factors influencing foreign-owned micro businesses were investigated; sociological factors or social culture factors, entrepreneurial psychological characteristics, entrepreneurship innovation factors, and factors that influence the need for high achievement in entrepreneurs that operate foreign-owned (African immigrant-owned) micro businesses in Durban. The study was approached from a positivist philosophy, employing a cross-sectional research design to investigate the research phenomenon. The deductive approach to research was used to explore the research phenomenon. The study was ultimately quantitative in nature. The study was conducted among African immigrant-owned micro businesses in the Durban Central Business District. The population of the study was 6,238 and out of that, the sample size of 364 participants was drawn using the cluster sampling technique. The study used self-administered questionnaire to collect data from the participants. A pilot study was also carried out first prior to the full-scale research survey. Data quality control was achieved through reliability and validity tests. Data gathered was analysed using the Statistical Package for Social Sciences (SPSS), version 25.0. The analysis of the data was done by employing both descriptive and inferential statistics. The results of the study revealed that sociological factors had a mean score value of 4.592 when compared with a maximum attainable score of 5 on a 1 to 5-point Likert scale. This therefore, suggested that sociological factors positively influenced African immigrant-owned micro businesses in Durban. The results of the study further showed that entrepreneurial psychological characteristics/factors (Mean = 4.622) had a strong significant influence on African immigrant-owned micro businesses in Durban. Findings from the study also indicated that entrepreneurship innovation factors (Mean = 4.644) had a strong significant positive influence on African immigrant-owned micro businesses in Durban. Lastly, it was found that the need for high achievement factors in entrepreneurs (Mean = 4.383) also had a strong significant positive influence on African immigrant-owned micro businesses in Durban. The study therefore, made the following recommendations as measures to addressing the challenges affecting the African immigrant-owned micro businesses, namely: acquisition of managerial skills; education, training and development; identification of business opportunities generating innovative ideas, identification of suitable business locations and creating enabling business environment for African immigrant-owned micro businesses.