RESILIENCE AND REINVENTION: THE JOURNEY OF MIGRANT-OWNED MICRO ENTERPRISES IN SOUTH AFRICA BEFORE, DURING, AND AFTER COVID-19
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Edson Chido Mutisi(1*)
Department of Sociology, University of Johannesburg
-
Paddington Mutekwe(2)
Department of Sociology, University of Johannesburg
-
Celestine Padayachee(3)
Department of Sociology, University of Johannesburg
(*) Corresponding Author
Keywords:
South Africa, COVID-19, Small Businesses, Migrants, Micro-Enterprises
Abstract
This paper follows foreign migrant-owned microenterprises in South Africa, tracing their paths before and after the COVID-19 pandemic. Research on micro-enterprises during the pandemic is generally inclined toward finding the impact of COVID-19 without a migration analysis. This paper bridges this gap by centering on migrant-owned businesses since they may have been affected by being owned by foreigners, a vulnerable population. The paper utilizes qualitative data to evaluate the pandemic's impact on business operations, financial security, and survival mechanisms. Furthermore, it assesses the post-pandemic revival process and locates migrant-owned small businesses' experiences in debates on migration, informality, and entrepreneurship. The primary findings of the paper illustrate that migrant-owned small businesses performed relatively well before the pandemic, with most of the owners earning above South Africa's monthly minimum wage. The paper also discovered that many foreign-owned small enterprises were impacted by a decline in demand during the lockdown, resulting in a loss of revenue, while some have struggled to recover post-COVID-19.
Keywords: South Africa; COVID-19; Small Businesses; Migrants; Micro-Enterprises
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References
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Lazear, E.P. (2005). Entrepreneurship. Journal of Labour Economics, 23(4), pp. 649-680.
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Modisenyane, M., Madikezela, L., Mngemane, S., Ramadan, O. P., Matlala, M., McCarthy, K., Govender, N.,
Nemungadi, T., & Silal, S. P. (2022). COVID-19 response in South African communities: Screening, testing, tracing and movement modelling. South African Medical Journal, 112(5b), 366.
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Moyo, I. (2015). African immigrant traders in Johannesburg Inner City, South Africa: Deconstructing the threatening other (Doctoral dissertation, University of South Africa).
Msomi, T.S. and Ngcobo, N.G. (2023). Monetary access and survival of small and medium-sized enterprises in South Africa Post-COVID-19 era.
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Muchineripi, J., Chinyamurindi, W. and Chimucheka, T., 2022. African immigrants self-employment journey: navigating contextual challenges in South Africa. Journal of Global Mobility: The Home of Expatriate Management Research, 10(4), pp.530-544.
Mukumbang, F.C., Ambe, A.N., & Adebiyi, B.O. (2020). Unspoken inequality: how COVID-19 has exacerbated existing vulnerabilities of asylum-seekers, refugees, and undocumented migrants in South Africa. International Journal of Equity Health 19, 141. https://doi.org/10.1186/s12939-020-01259-4.
Ndagurwa, P. (2023). Statistical surprises: Key results from Census 2022 for Gauteng. GCRO Rapid Research Paper. Johannesburg: Gauteng City-Region Observatory.
Ngota, B.L., Mang’unyi, E.E. and Rajkaran, S. (2018). Factors impeding African immigrant entrepreneurs’ progression in selected small and medium enterprises: Evidence from a local municipality in South Africa. South African Journal of Business Management, 49(1), pp.1-9.
Nsomba, G., Tshabalala, N., & Vilakazi, T. (2021). Analysis of the impact of COVID-19 on micro, small, and medium-sized enterprises in South Africa. Centre for Competition, Regulation and Economic Development; University of Johannesburg.
Ogunlela, G.O. and Tengeh, R.K. (2020). Disruption at its peak: pockmark of COVID-19 on immigrant retail business in South Africa. Journal of Public Administration, 55(4), pp.675-687.
Ojugbele, H.O., Tengeh, R.K. and Ogunlela, O. (2022). COVID-19 bailout nationalism: a predicament in saving small immigrant-owned businesses in South Africa. International Journal of Research in Business and Social Science (2147-4478), 11(6), pp.33-42.
Parliamentary Monitoring Group. (2020). Support interventions to small business during COVID-19 lockdown: update; with Minister and Deputy. Available at: https://pmg.org.za/committee-meeting/30114/.
Peberdy, S. (2017). Competition or co-operation? South African and migrant entrepreneurs in Johannesburg. African Books Collective.
Radipere, S. and Dhliwayo, S. (2014). An analysis of local and immigrant entrepreneurs in South Africa’s SME sector. Mediterranean Journal of Social Sciences, 5(9), pp.189-198.
Rogan, M. and Skinner, C. (2020). The COVID-19 crisis and the South African informal economy. Locked out’of livelihoods and employment. National Income Dynamics Study-Coronavirus Rapid Mobile Survey (NIDS-CRAM).
Rogerson, C.M. and Rogerson, J.M. (2010). Improving the local business environment of Johannesburg. Development Southern Africa, 27(4), pp.577-593.
Rwafa-Ponela, T., Goldstein, S., Kruger, P., Erzse, A., Abdool Karim, S. and Hofman, K. (2022). Urban informal food traders: A rapid qualitative study of COVID-19 lockdown measures in South Africa. Sustainability, 14(4), p.2294.
Satsatin, K.A.C., Latayan, J.C., Jr., F.P.P., Sapin, S.B., & Tesoro, J.F.B. (2023). Lived Experiences of Social Studies Teachers Conducting Hybrid Classes Amidst COVID-19 Pandemic. Advanced Qualitative Research, 1(2), 17–27.
https://doi.org/10.31098/aqr.v1i2.1589.
Skinner, C. and Watson, V. (2021). Planning and informal food traders under COVID-19: The South African case. Town Planning Review, 92(3), pp.301-307.
South African National Defence Force. (2014). South African Defence Review 2014 [Online]. http://www.gov.za/documents/download.php?f=213285.
Tengeh, R., Ballard, H. and Slabbert., A. (2011). A Framework for Acquiring the Resources Vital for the Start-up of a Business in South Africa: an African Immigrant’s Perspective. European Journal of Social Sciences, 23(3), pp.362-381.
Tengeh, R.K. and Lapah, C.Y. (2013). The socio-economic trajectories of migrant street vendors in urban South Africa. Mediterranean Journal of Social Sciences, 4(2), pp.109-127.
Todes, A. (2012). Urban growth and strategic spatial planning in Johannesburg, South Africa. Cities, 29(3), pp.158-165.
Wegerif, M.C. (2020). “Informal” Food Traders and Food Security: Experiences from the Covid-19 Response in South Africa. Food Security, 12(4), pp.797-800.
Aljazeera. (2022). South Africa ends COVID restrictions as fifth wave fades. Aljazeera, 22 June.
Anderson, B.A. (2006). Migration in South Africa in comparative perspective, in Kok, P., Gelderblom, D., Oucho, J.O. and van Zyl, J. (editors). Migration in South and Southern Africa: Dynamics and determinants. Cape Town: HSRC Press. 97-117.
Arias, J. (2019). Informal vendors in Johannesburg, South Africa. Penn IUR Series on informality.
Asoba, S.N., Mefi, N. and Sibanda, L. (2020). African immigrant-owned businesses: A SWOT analysis perspective. Academy of Entrepreneurship Journal, 26, pp.1-6.
Bamu, P.H. and Marchiori, T. (2020). The Recognition and Protection of Informal Traders in COVID-19 Law: Lessons from Africa. Women in Informal Employment Globalizing and Organizing (WIEGO), December.
Bauer, T. and Zimmermann, K. (2018). Causes of international migration: A survey. In Crossing Borders (pp. 111-144). Routledge.
Braun, C., & Clarke, H. (2011). Social Research on a Global Scale: Dos and don’ts. London: Sage.
Carter, N., Bryant-Lukosius, D., DiCenso, A., Blythe, J., & Neville, A. J. (2014). The use of triangulation in qualitative research. Oncology Nursing Forum, 41(5), 545–547. https://doi.org/10.1188/14.ONF.545-547.
Cele, Z.P. and Tshikovhi, N. (2023). Review of the Lockdown Regulations’ Impact on Informal Businesses during the COVID-19 Pandemic. African Journal of Inter/Multidisciplinary Studies, 5(1), pp.1-10.
Charman, A., Petersen, L. and Piper, L. (2012). From local survivalism to foreign entrepreneurship: the transformation of the spaza sector in Delft, Cape Town. Transformation: Critical Perspectives on Southern Africa, 78(1), pp.47-73.
Chidau, T., Khosa, R.M. and Phillips, M. (2022). Effects of successful business practices on business performance: Evidence from immigrant entrepreneurs in Ekurhuleni, South Africa. The Southern African Journal of Entrepreneurship and Small Business Management, 14(1), p.490.
Chikwendu E.J., Mutambara, E., and Indermun, V. (2015). Challenges Faced by Foreign-owned Informal Small Businesses in Durban, South Africa. Journal of Sustainable City and Society, 2(1), pp.1-21.
Crush, J. and Tawodzera, G. (2024). Informal pandemic precarity and migrant food enterprise in South Africa during COVID-19. Global Food Security, 43, p.100804.
Department of Co-operative Governance and Traditional Affairs (2020). Regulations issued in terms of section 27(2) of Disaster Management Act (57/2002), NO. R. 446, 2 April 2020.
https://www.gov.za/sites/default/files/gcis_document/202004/43258rg11098gon480s.pdf.
Department of Employment and Labour. (2021). National Minimum Wage 2021. https://www.labour.gov.za/documentcenter/pages/national-minimum-wage-2021.aspx .
Götz, G., Ballard, R., Hassen, E.K., Hamann, C., Mahamuza, P., Maree, G., Miles-Timotheus, S., Modiba, M. Murahwa, B. Mushongera, D., Naidoo, L., Naidoo, Y., Ndagurwa, P. (2023). Statistical surprises: Key results from Census 2022 for Gauteng. GCRO Rapid Research Paper. Johannesburg: Gauteng City-Region Observatory.
Government of South Africa. (2022). President Cyril Ramaphosa: South Africa's response to Coronavirus COVID-19 pandemic.
https://www.gov.za/news/speeches/president-cyril-ramaphosa-south-africas-response-coronavirus-covid-19-pandemic-04-apr.
Kalitanyi, V. and Visser, K. (2010). African immigrants in South Africa: Job takers or job creators? South African Journal of Economic and Management Sciences, 13(4), pp.376-390.
Khosa, R.M. and Kalitanyi, V. (2014). Challenges in operating micro-enterprises by African foreign entrepreneurs in Cape Town, South Africa. Mediterranean Journal of Social Sciences, 5(10), pp.205-215.
Köhler, T. and Hill, R. (2022). Wage subsidies and COVID-19: The distribution and dynamics of South Africa’s TERS policy. Development Southern Africa, 39(5), pp.689-721.
Lazear, E.P. (2005). Entrepreneurship. Journal of Labour Economics, 23(4), pp. 649-680.
Lemahoza, K. (2024). Migration trends in the COJ. Johannesburg: COJ. https://joburg.org.za/documents_/Documents/Issue_37_Migration_patterns_in_the_CoJ_Final.pdf.
Mbeve, O., Nyambuya, V.P., Munyoro, A., Dube, N. and Shumba, K. (2020). The challenges faced and survival strategies adopted by Zimbabwean informal traders that live in Johannesburg inner-city, during the COVID-19-induced lockdown in South Africa. Journal of Social Development in Africa, pp.31-64.
Mhlangu, T.S. (2023). ‘Exploring the impact of the Covid-19 pandemic on the informal economy in Durban, South Africa.’ Masters dissertation, University of KwaZulu Natal.
Modisenyane, M., Madikezela, L., Mngemane, S., Ramadan, O. P., Matlala, M., McCarthy, K., Govender, N.,
Nemungadi, T., & Silal, S. P. (2022). COVID-19 response in South African communities: Screening, testing, tracing and movement modelling. South African Medical Journal, 112(5b), 366.
https://doi.org/10.7196/SAMJ.2022.v112i5b.16072.
Moyo, I. (2015). African immigrant traders in Johannesburg Inner City, South Africa: Deconstructing the threatening other (Doctoral dissertation, University of South Africa).
Msomi, T.S. and Ngcobo, N.G. (2023). Monetary access and survival of small and medium-sized enterprises in South Africa Post-COVID-19 era.
Mthembu-Mahanyele, S. (2002). No title. Address presented at the Annual General Meeting of the National African Federated Chamber of Commerce, Sun City, South Africa. http://www.housing.gov.za/content/mediadesk/speeches.
Muchineripi, J., Chinyamurindi, W. and Chimucheka, T., 2022. African immigrants self-employment journey: navigating contextual challenges in South Africa. Journal of Global Mobility: The Home of Expatriate Management Research, 10(4), pp.530-544.
Mukumbang, F.C., Ambe, A.N., & Adebiyi, B.O. (2020). Unspoken inequality: how COVID-19 has exacerbated existing vulnerabilities of asylum-seekers, refugees, and undocumented migrants in South Africa. International Journal of Equity Health 19, 141. https://doi.org/10.1186/s12939-020-01259-4.
Ndagurwa, P. (2023). Statistical surprises: Key results from Census 2022 for Gauteng. GCRO Rapid Research Paper. Johannesburg: Gauteng City-Region Observatory.
Ngota, B.L., Mang’unyi, E.E. and Rajkaran, S. (2018). Factors impeding African immigrant entrepreneurs’ progression in selected small and medium enterprises: Evidence from a local municipality in South Africa. South African Journal of Business Management, 49(1), pp.1-9.
Nsomba, G., Tshabalala, N., & Vilakazi, T. (2021). Analysis of the impact of COVID-19 on micro, small, and medium-sized enterprises in South Africa. Centre for Competition, Regulation and Economic Development; University of Johannesburg.
Ogunlela, G.O. and Tengeh, R.K. (2020). Disruption at its peak: pockmark of COVID-19 on immigrant retail business in South Africa. Journal of Public Administration, 55(4), pp.675-687.
Ojugbele, H.O., Tengeh, R.K. and Ogunlela, O. (2022). COVID-19 bailout nationalism: a predicament in saving small immigrant-owned businesses in South Africa. International Journal of Research in Business and Social Science (2147-4478), 11(6), pp.33-42.
Parliamentary Monitoring Group. (2020). Support interventions to small business during COVID-19 lockdown: update; with Minister and Deputy. Available at: https://pmg.org.za/committee-meeting/30114/.
Peberdy, S. (2017). Competition or co-operation? South African and migrant entrepreneurs in Johannesburg. African Books Collective.
Radipere, S. and Dhliwayo, S. (2014). An analysis of local and immigrant entrepreneurs in South Africa’s SME sector. Mediterranean Journal of Social Sciences, 5(9), pp.189-198.
Rogan, M. and Skinner, C. (2020). The COVID-19 crisis and the South African informal economy. Locked out’of livelihoods and employment. National Income Dynamics Study-Coronavirus Rapid Mobile Survey (NIDS-CRAM).
Rogerson, C.M. and Rogerson, J.M. (2010). Improving the local business environment of Johannesburg. Development Southern Africa, 27(4), pp.577-593.
Rwafa-Ponela, T., Goldstein, S., Kruger, P., Erzse, A., Abdool Karim, S. and Hofman, K. (2022). Urban informal food traders: A rapid qualitative study of COVID-19 lockdown measures in South Africa. Sustainability, 14(4), p.2294.
Satsatin, K.A.C., Latayan, J.C., Jr., F.P.P., Sapin, S.B., & Tesoro, J.F.B. (2023). Lived Experiences of Social Studies Teachers Conducting Hybrid Classes Amidst COVID-19 Pandemic. Advanced Qualitative Research, 1(2), 17–27.
https://doi.org/10.31098/aqr.v1i2.1589.
Skinner, C. and Watson, V. (2021). Planning and informal food traders under COVID-19: The South African case. Town Planning Review, 92(3), pp.301-307.
South African National Defence Force. (2014). South African Defence Review 2014 [Online]. http://www.gov.za/documents/download.php?f=213285.
Tengeh, R., Ballard, H. and Slabbert., A. (2011). A Framework for Acquiring the Resources Vital for the Start-up of a Business in South Africa: an African Immigrant’s Perspective. European Journal of Social Sciences, 23(3), pp.362-381.
Tengeh, R.K. and Lapah, C.Y. (2013). The socio-economic trajectories of migrant street vendors in urban South Africa. Mediterranean Journal of Social Sciences, 4(2), pp.109-127.
Todes, A. (2012). Urban growth and strategic spatial planning in Johannesburg, South Africa. Cities, 29(3), pp.158-165.
Wegerif, M.C. (2020). “Informal” Food Traders and Food Security: Experiences from the Covid-19 Response in South Africa. Food Security, 12(4), pp.797-800.
Published
2025-07-02
How to Cite
Mutisi, E., Mutekwe, P., & Padayachee, C. (2025). RESILIENCE AND REINVENTION: THE JOURNEY OF MIGRANT-OWNED MICRO ENTERPRISES IN SOUTH AFRICA BEFORE, DURING, AND AFTER COVID-19. Journal of Management : Small and Medium Enterprises (SMEs), 18(2), 981-996. https://doi.org/10.35508/jom.v18i2.20596
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Articles
