Effects of successful business practices on business performance: Evidence from immigrant entrepreneurs in Ekurhuleni, South Africa

Abstract

Background: The success stories of immigrant entrepreneurs are well documented worldwide. In South Africa, that success created mixed feelings among the locals as immigrant entrepreneurs are often perceived as being opportunistic and cunning in business. There is not much research on the business practices that are applied and how they influence business performance.

Aim: This research study aimed to explore and sought an in-depth understanding of the business practices that immigrant entrepreneurs put into practice and how they affect business performance.

Setting: The research was carried out in Germiston and Kempton Park in the Ekurhuleni metropolitan, in Gauteng province. Moreover, the study focused on legally operated businesses by immigrant entrepreneurs.

Methods: To enable the exploration of personal experiences, a qualitative research approach was used. Twelve in-depth face-to-face interviews using semi-structured questions were conducted to collect data.

Results: The study established that immigrant entrepreneurs in South Africa indeed implemented business practices, and advertising was used by all 12 participants. Word of mouth, which created loyalty, came out as the most trusted and valued business practice that all immigrant entrepreneurs relied on.

Conclusion: The study deduces a strong positive relationship between implementing business practices and improved business performance. This study revealed that entrepreneurs applied different business practices (such as advertising, transportation and pricing) simultaneously to promote and improve business performance.