The contemporary influence of South African immigration law on the nature of immigrant entrepreneurship in Cape Town

Abstract

Accommodating immigration laws attract and support the establishment and growth of immigrant entrepreneurship. An accommodating immigration law can be characterised as one that seeks to facilitate the integration of the immigrant into the host community by extending to him or her the basic rights and privileges of citizenship. Immigrant entrepreneurship can boost the economy and create jobs for citizens in countries with accommodating laws, especially when the establishment of small and micro enterprises is encouraged. Conversely, the absence of inclusive and appealing immigration laws and policies makes a country less attractive to entrepreneurship and investors alike. The small, micro and informal entrepreneurial sectors are dominated by African immigrant entrepreneurs in Cape Town, South Africa. These sectors have the potential to create jobs to improve the national economy. However, the government’s stringent laws and policies towards immigrant entrepreneurs, particularly with regard to the issuing of visas/permits, indirectly deprive the country of benefitting from the full economic potential of this entrepreneurship. Instead of encouraging African entrepreneurs in Cape Town to grow their businesses, the treatment of immigrants at the Department of Home Affairs, public statements and the government’s passive attitudes to issues facing immigrants such as xenophobia and the strengthening of laws to make Cape Town a less favourable place for Africans, are among the factors contributing to the slow growth of the economy as a whole. The stereotyping of non-nationals has beclouded the minds of nationals and policymakers into believing that African immigrants either steal jobs or are to blame for the misery of most South Africans. These facts are supported by the literature and the participants in this study. As a result, businesses owned by immigrants continue to suffer challenges that restrict their growth and confine them to certain types of endeavours. This research aimed at determining the influence of immigration law on the entrepreneurship of African immigrants. The significance of the research cannot be overemphasised as it unveils the role of immigration law and policies in restricting the business activities of African immigrants in Cape Town. The study was conducted using mixed-method research. The target population was African immigrants within the Cape Metropole whose businesses are affected directly or indirectly by immigration law. A total of 161 self-administered questionnaires were used iii in the research. The data collected was captured and analysed using SPSS statistical software, after which the findings were interpreted and discussed using tables, and figures. It was found that visa/permit types had a great influence on the type of businesses owned by immigrants. African immigrants face numerous challenges, including difficulties with securing loans, long waiting periods for the renewal of visas/permits, strenuous and expensive processes to obtain documents, the high cost of rentals, stereotyping and frequent victimisation of immigrant businesses, non-recognition of entrepreneurship as a qualification for long-stay visa/permits, corruption, security threats and the uncertainty of saving money in banks.