Academic journal article Academy of Entrepreneurship Journal

African Immigrant Entrepreneurship: A Catalyst for Skills Transfer

Academic journal article Academy of Entrepreneurship Journal

African Immigrant Entrepreneurship: A Catalyst for Skills Transfer

Article excerpt

INTRODUCTION

Immigrant enterprise has been distinguished for impacting new skills and the introduction of new business ventures development which correlates positively with a country's economic output (Kalitanyi & Visser 2010a:2010b:2014; Fairlie, 2012; Ngota et al., 2017). Some authors (Letseka & Maile, 2008; Khosa & Kalitanyi, 2014), pointed out that, with a 15% college graduation rate which is one of the most minimal on the planet, South Africa still faces a tremendous challenge with regards to providing the fundamental abilities in numerous fields. This has not exclusively been witness in zones such as normal sciences, technology and in engineering however it is additionally a reality in some sociologies division, for example, business enterprise, which has affected the administration activities for job creation (Fatoki & Patswawairi, 2012). This study agrees with the aforementioned results and allude that skills such entrepreneurial skills which have the ability to create jobs and reduce unemployment as well as improving the standards of living of the locals are deficient amongst the nationals. According to O'Neill & Viljoen (2001), entrepreneurs may be considered as the most imperative criterion for economic development in a country, and without them, the state has the difficult task of organising development without the motivating force of potential gain.

Cazes and Verick (2013) theorize that human capital paradigm adopts that everything being equal, the number of years spent in schooling system escalates one's capacity to get a job. Further, Van de Rheede (2012) however argued that the nature of unemployment of skilled workers is a complex one, since it relates to various factors such as the value of education, lack of experience, discrimination and labour market inflexibility, labour legislation as well as other structural parameters. Researchers (Bogan & Darity, 2008; Khosa & Kalitanyi, 2015; Crush et al., 2017) posit that, with such aforementioned constraints, it is difficult for immigrants to enter into the labour market therefore, entrepreneurship becomes a better option. In that way, they create skills opportunity for others.

As such, some authors (Chamuorwa & Mlambo, 2014; Asoba & Tengeh, 2016; Ntema 2016; Ngota et al., 2017) attest that South Africa has had colossal development over years and as such, is counted to be one of the largest economies on the African continent. In their study on migration and migrants entrepreneurial skills in South Africa, (Kalitanyi & Visser, 2014) established that African immigrant entrepreneurs transmit their entrepreneurial skills to local nationals. The findings of their study uncovered that more than 73% of immigrant entrepreneurs who took part in their survey authenticated of transmitting their entrepreneurial skills to locals who are either employed by them or do business with them (Kalitanyi & Visser, 2014). Moreover, the study also revealed that 82% of the immigrant entrepreneurs' employees are locals, of whom 54% have ascertained to have acquired entrepreneurial skills from their employers (Kalitanyi & Visser, 2014). This correlate with the study by some authors (Cross 2006; Kalitanyi & Visser, 2014) who alluded that immigrant entrepreneurs, who mostly survive by their entrepreneurial initiatives in order to satisfy their essential needs, claim to encourage local people.

From the aforementioned above, the presence of numerous African immigrants in South Africa, and their participation in small business activities, continues to attract diverse social organizations and scholars alike to examine the magnitude to which their entrepreneurial accomplishments benefit their employees in general and the local citizens in particular. This study is in response to the hostile economic environment in South Africa towards immigrants and immigrant entrepreneurship, especially African immigrant entrepreneurship where ordinary people are becoming more and more intolerant, exhibiting destructive and sometime brutal attitude towards these immigrants while making all sorts of detrimental comments and looting of their businesses. …

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