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Article
Publication date: 14 October 2020

Risimati Maurice Khosa

This paper aims to determine the perceptions of family-owned small enterprises on the external transfer of ownership and intra-transfer of ownership using empirical data. This…

Abstract

Purpose

This paper aims to determine the perceptions of family-owned small enterprises on the external transfer of ownership and intra-transfer of ownership using empirical data. This permitted the research to successfully point out the factors that influence the internal transfer of ownership, and also, the effects of intra-transfer of ownership from a viewpoint of both family members and non-family members in small family-owned enterprises.

Design/methodology/approach

A quantitative research design was used to conduct this research, where primary data was gathered from a sample of 257 respondents using convenience and snowball sampling techniques. Data was collected through a survey instrument distributed via internet-based surveys (SurveyMonkey) and through a drop-off method. The gathered data was then captured, coded and analysed using Stata (version 15) statistical software.

Findings

The results divulged that intra or internal transfer of ownership is the preferred avenue compared to external transfer of ownership. This is because, when a family business is transferred to the next generation, it presents some benefits to family members working in the business and to the family at large. As a result, the empirical results show that factors that influence the internal transfer of ownership include: favouritism; security, stability and growth; a formal and structured succession plan. Business improvement and organisational change are then the effects of external transfer ownership. Although these effects make business sense, family members will advocate for internal transfer of ownership for them not to lose the benefits that come with the internal transfer of ownership.

Research limitations/implications

This paper adds to the current family business research in South Africa, thus reducing the shortage of such research. Moreover, the paper proposes further research that will provide tested, practical and detailed guidelines of survival in the next generation.

Practical implications

The paper empirically highlights the perils of selecting a successor based on favouritism rather than merit and possible consequences, thereby assisting those involved in family enterprise succession to make an informed decision when choosing a successor.

Originality/value

This research paper provides empirical evidence of the internal transfer of ownership factors and external transfer of ownership effects from a South African perspective.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 5
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 11 May 2015

Risimati Maurice Khosa and Vivence Kalitanyi

This paper aims to investigate migration reasons, traits and entrepreneurial motivation of African immigrant entrepreneurs in Cape Town, South Africa, as there is limited research…

3169

Abstract

Purpose

This paper aims to investigate migration reasons, traits and entrepreneurial motivation of African immigrant entrepreneurs in Cape Town, South Africa, as there is limited research on immigrant entrepreneurship in South Africa.

Design/methodology/approach

The empirical research was conducted under mixed methods paradigm where primary data were gathered from a sample of 93 participants using the convenience sampling technique. Data were gathered through a survey of 72 semi-structured personal interviews and 21 self-administered questionnaires and analysed using SPSS version 21.

Findings

The empirical research unveiled that immigrant entrepreneurs migrate into South Africa for different reasons: political instability and economic reasons were the chief reasons for migration. Immigrants engage into necessity entrepreneurship as a need to survive in the host country and to confront discrimination in the job market. Therefore, immigrant entrepreneurs in Cape Town are pushed, rather than pulled, towards entrepreneurship.

Practical implications

This paper also suggests further research that will evaluate education levels of immigrant entrepreneurs in South Africa, as there is a controversy about the education levels of immigrant entrepreneurs.

Social implications

South Africans need to understand that African foreign entrepreneurs are job creators rather than job takers and to be aware of the skills brought into the country by these entrepreneurs. Accordingly, the current study contributes to peaceful cohabitation between South Africans and African foreign entrepreneurs.

Originality/value

This paper provides an empirical analysis of migration reasons, traits and entrepreneurial motivation of African immigrant entrepreneurs in South Africa and also provides an entrepreneurial migration progression.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 9 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

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