Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships

Maphelo Malgas; Wellington .B. Zondi

Article Details

Research Article Volume 15 Issue 02

Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships

Maphelo Malgas • Wellington .b. Zondi

Published: 29 Apr 2021 Issue:Volume 15 Issue 02 Apr 2021 Author details below

Maphelo Malgas

Retail Business Management: Faculty of Business & Management Sciences Cape Peninsula University of Technology, Cape Town, South Africa & College of Law & Management Studies University of KwaZulu-Natal, Durban, South Africa

Wellington .B. Zondi

College of Law & Management Studies University of KwaZulu-Natal, Durban, South Africa

Small business retailers township retailing migrant small business migrant entrepreneurship small business challenges.

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Abstract

Research summary

This paper is based on the study that sought to identify the core competitive factors that differentiate foreign national small business retailers from local South African small business retailers in the way they operate their small retailing businesses. Primary research was conducted in two of Cape Town’s (South Africa) townships, Delft and Eindhoven. The population of the study comprised two groups, namely, South African and foreign national small business retailers operating grocery retailer stores. The first group consisted of 55 South African small business retailers while the second group consisted of 75 migrant small business retailers. A random sample was targeted from each group and the quantitative research methodology was used in this study using a structured questionnaire with close-ended questions.

The results showed growth of foreign national retailers and decline in the number of the local retailers in the two townships. The study showed that migrant retailers have a competitive edge over local retailers. The study also revealed that most local traders have a lower level of education compared to their migrant trader counterparts. Furthermore, the study revealed that most of local small business retailers have never had a business finance mentor in their entire trading life. The study revealed that there is a need for a targeted funding model for potential and current local small business retailers. The study proposes a three-stage business intervention model to assist South African small business retailers to become more competitive in township retailing environments

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Article History

Published 29 Apr 2021

How to Cite

Malgas, M. & Zondi, W. ... (2021). Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships. Journal of Business and Retail Management Research, Volume 15 Issue 02.

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APA

Malgas, M. & Zondi, W. ... (2021). Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships. Journal of Business and Retail Management Research, Volume 15 Issue 02.

MLA

Malgas, Maphelo, and Wellington .b. Zondi. "Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships." Journal of Business and Retail Management Research, Volume 15 Issue 02, 2021.

Chicago

Maphelo Malgas and Wellington .b. Zondi. "Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships." Journal of Business and Retail Management Research Volume 15 Issue 02 (29 Apr 2021).

Harvard

Malgas, M. & Zondi, W. .. (2021) Competitive factors between local and foreign national small business retailers in South Africa: The case of Cape Town’s Townships. Journal of Business and Retail Management Research, Volume 15 Issue 02

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