Challenges And Key Success Factors Of African Descent Foreign-Owned SMES In The Eastern Cape Province Of South Africa: A Case Of Selected Towns

Abstract

On the backdrop of contemporary environmental transformations where competition has been unwarrantedly sprouting in the business world, SMEs especially, coping with higher demands in maximising their efficiency and competitiveness is inexcusable. The performance of the South African currency, availability of resources and improved infrastructure continue to attract citizens of other African countries e.g. Somalia, Nigeria and Zimbabwe, to start businesses in South Africa. Besides the already acknowledged numerous challenges faced by SMEs, these typology of small enterprises, herein termed AFRICAN DESCENT FOREIGN-OWNED SMES seem to have additional challenges embedded in internalisation of business, as well as, troubled countries of origin. Despite these challenges, foreign SMEs continue to increase and spread in South Africa. A quantitative research was conducted on foreign-owned small businesses in the targeted area using questionnaires. The research focused on identifying challenges of this typology of SMEs and their key success factors. Herein, these factors are classified as entrepreneurial, managerial and marketing success factors.

DOI: 10.5901/mjss.2014.v5n4p59