Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach

Background: Migrants operating micro-enterprises in rural communities of South Africa is a common phenomenon. These entrepreneurs live in communities they serve, and their enterprises are embedded in the ‘social fabric’ of these communities. Because economic and social value is entrenched in these s...

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Main Authors: André G. van der Walt, Louise Whittaker
Format: Article
Language:English
Published: AOSIS 2020-01-01
Series:The Southern African Journal of Entrepreneurship and Small Business Management
Subjects:
Online Access:https://sajesbm.co.za/index.php/sajesbm/article/view/261
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author André G. van der Walt
Louise Whittaker
author_facet André G. van der Walt
Louise Whittaker
author_sort André G. van der Walt
collection DOAJ
description Background: Migrants operating micro-enterprises in rural communities of South Africa is a common phenomenon. These entrepreneurs live in communities they serve, and their enterprises are embedded in the ‘social fabric’ of these communities. Because economic and social value is entrenched in these symbiotic relationships, it fosters the belief that these micro-enterprises hold significant job creation potential. Social capital provides an excellent base to explore this topic in more detail. Aim: The aim of this study was to explore why migrant micro-entrepreneurs operate enterprises in uncertain environments and how social capital contributes to migrant micro-entrepreneurial opportunity creation when contextualised in poverty. Setting: The investigation focused on rural communities in two large regions of South Africa, Mahikeng and QwaQwa. Both regions are characterised by a large central hub with several rural villages scattered around it. Methods: A qualitative research design helped to understand the process of opportunity creation. Entrepreneurs were selected through purposeful sampling to generate the data. Trustworthiness in the data was established by heightening transparency in the research process. Results: Four themes emerged: life experience, social connections, opportunities and business engagement. Life experience provided insights into why these entrepreneurs operated enterprises in uncertain environments, and the themes collectively showed how these entrepreneurs use social relationships to access resources to create opportunity. Conclusion: A visual framework and key contributions about how migrant micro-entrepreneurs gain access to resources, how opportunity contextualised in poverty was socially determined and the importance of entrepreneurial engagement provided academic and practical relevance in the field of entrepreneurship.
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spelling doaj.art-5d28361964524f3283e9d0fd8cb5235e2022-12-22T01:54:14ZengAOSISThe Southern African Journal of Entrepreneurship and Small Business Management2522-73432071-31852020-01-01121e1e1210.4102/sajesbm.v12i1.26187Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approachAndré G. van der Walt0Louise Whittaker1Research and Development, Gordon Institute of Business Science, JohannesburgResearch and Development, Gordon Institute of Business Science, JohannesburgBackground: Migrants operating micro-enterprises in rural communities of South Africa is a common phenomenon. These entrepreneurs live in communities they serve, and their enterprises are embedded in the ‘social fabric’ of these communities. Because economic and social value is entrenched in these symbiotic relationships, it fosters the belief that these micro-enterprises hold significant job creation potential. Social capital provides an excellent base to explore this topic in more detail. Aim: The aim of this study was to explore why migrant micro-entrepreneurs operate enterprises in uncertain environments and how social capital contributes to migrant micro-entrepreneurial opportunity creation when contextualised in poverty. Setting: The investigation focused on rural communities in two large regions of South Africa, Mahikeng and QwaQwa. Both regions are characterised by a large central hub with several rural villages scattered around it. Methods: A qualitative research design helped to understand the process of opportunity creation. Entrepreneurs were selected through purposeful sampling to generate the data. Trustworthiness in the data was established by heightening transparency in the research process. Results: Four themes emerged: life experience, social connections, opportunities and business engagement. Life experience provided insights into why these entrepreneurs operated enterprises in uncertain environments, and the themes collectively showed how these entrepreneurs use social relationships to access resources to create opportunity. Conclusion: A visual framework and key contributions about how migrant micro-entrepreneurs gain access to resources, how opportunity contextualised in poverty was socially determined and the importance of entrepreneurial engagement provided academic and practical relevance in the field of entrepreneurship.https://sajesbm.co.za/index.php/sajesbm/article/view/261emerging marketscommunitymicro-entrepreneurmigrantopportunity creationsocial capital.
spellingShingle André G. van der Walt
Louise Whittaker
Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach
The Southern African Journal of Entrepreneurship and Small Business Management
emerging markets
community
micro-entrepreneur
migrant
opportunity creation
social capital.
title Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach
title_full Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach
title_fullStr Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach
title_full_unstemmed Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach
title_short Exploring migrant micro-entrepreneurs’ use of social capital to create opportunity in South Africa’s informal market: A qualitative approach
title_sort exploring migrant micro entrepreneurs use of social capital to create opportunity in south africa s informal market a qualitative approach
topic emerging markets
community
micro-entrepreneur
migrant
opportunity creation
social capital.
url https://sajesbm.co.za/index.php/sajesbm/article/view/261
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AT louisewhittaker exploringmigrantmicroentrepreneursuseofsocialcapitaltocreateopportunityinsouthafricasinformalmarketaqualitativeapproach