Report

Competition or Co-operation? South African and Migrant Entrepreneurs in Johannesburg

International migrant business owners in South Africa’s informal sector are, and have been for many years, the target of xenophobic attacks. This has led to public debates about their role in the South African economy and competition with their South African counterparts, with allegations including that they force the closure of South African businesses, harbour ‘trade secrets’ that give them the edge, and dominate the sector. As a result, at national government level there has been increasing interest in curtailing the rights of international migrants, particularly asylum seekers and refugees, to run informal enterprises. This report explores the experiences of 928 international and South African migrant entrepreneurs operating informal sector businesses in Johannesburg. It compares their
experiences, challenging some commonly held opinions in the process. The report compares
each group, what kind of businesses they operate, and where they do business. It investigates their motivations for migration, employment and entrepreneurial experience prior to and after migration, as well as their motivations for setting up their businesses. It goes on to examine how they set up their businesses, rates of business growth, contributions to local and household economies, and challenges faced, before looking at various interactions between South African and international migrant entrepreneurs in the informal sector of Johannesburg