Abstract
M.A. (Development Studies)
The study focused on understanding the entrepreneurial practices of Somali and Ethiopian spaza shop owners in Soweto, and the role of ethnicity in their business operations. The study had four objectives that it set out to achieve. The first objective provided an understanding of migrant entrepreneurship in the spaza shop sector of Soweto. The second objective explored the entrepreneurial practices of Somali and Ethiopian spaza shop owners. The third objective established the importance of culture and religion in the spaza shop operation of Somali and Ethiopian entrepreneurs in Soweto. The last objective identified challenges faced by Somali and Ethiopian spaza shop owners in Soweto. In-depth interviews with five Somali and five Ethiopian spaza shop owners in Soweto were conducted to gather the data analysed in the study. Purposive and snowballing sampling techniques were used to identify the participants.
Echoing available literature on migrant entrepreneurs in the spaza shop sector, the study found that Somali and Ethiopian spaza shop owners employed superior entrepreneurial strategies that have led to the success of their businesses. However, the adoption of these entrepreneurial practices relied heavily on strong social or migrant networks to yield the positive results that they have. The sharing of information and resources happen within these networks. These resources are described as social capital that migrants can draw from for the success of their businesses. Though not monetary, social capital can be translated into financial resources over time depending on certain contexts. The study further revealed that contrary to the arguments stated in the cultural theory, migrants are driven into entrepreneurship by factors related to the disadvantaged situations they face in host countries. While there may be elements of cultural propensity to be engaged in entrepreneurship, social and economic exclusion remain the main drivers for migrant entrepreneurship. The study concluded that the success of Somali and Ethiopian spaza shops in Soweto relied heavily on social networks that created the social capital shared amongst members of the network.