AN EXPLORATORY STUDY OF ECONOMIC CONTRIBUTIONS MADE BY MIGRANT RETAIL ENTREPRENEURS IN SOWETO
Zeleke Worku and Martin Mboweni
Tshwane School for Business and Society, 159 Nana Sita Street, Pretoria 0001, South Africa
This is an exploratory survey that was conducted at Soweto with the aim of exploring the economic contribution made by migrant retail businesses. The survey was based on quantitative and qualitative data gathered from 429 retail businesses that are operated by migrant entrepreneurs living and working in Soweto. The study found that about 54% of migrant entrepreneurs conducting business in Soweto employed at least one local South African in their businesses, and that about 24% of retail businesses operated by migrant entrepreneurs paid tax to the South African Revenue Service (SARS) on a regular basis. The results showed that profitability in retail businesses operated by migrant retail entrepreneurs was significantly influenced by the level of entrepreneurial skills, the use of money raised in their home countries for starting up business ventures at Soweto, and the ability to order merchandise in bulk on credit from wholesalers.
Keywords: Soweto, Migrant retail entrepreneurs, Economic contribution, Structural Equations Modelling