Owner-manager human capital and business coping ability in African immigrant small businesses in Southern Africa

Abstract

African immigrant-entrepreneurs arrive in foreign countries with just their human capital that helps them birth small businesses. Like other small businesses, these have the potential to contribute to the economic development of host nations, often by creating jobs; an important role, given the high levels of unemployment in the Southern African region. Unfortunately, the potential is deflated by the inability of the African-immigrant entrepreneurs to cope with running the businesses.

This empirical study utilised a non-probability sampling technique to identify and collect data from African immigrant entrepreneurs in Southern Africa. Descriptive statistical analysis show that managerial skills and level of education are perceived to play the highest and lowest roles, respectively, as it concerns coping ability. Interestingly, despite the perception, multiple regression analysis conducted reveal that both level of education and managerial skills demonstrate significant relationships with the business coping ability of African immigrant-entrepreneurs.