Descriptive Analysis on Challenges and Strategies Influencing Informal Small Businesses in Durban

Abstract

Informal small businesses remain one of the important means of economic development in economies of the world because of the value they create socially and economically, despite challenges facing them. They play a crucial role in South Africa’s economy. The study focuses on immigrant-owned informal small businesses in Durban. This study examined the factors that hampers the growth and progress of small businesses as well as the strategies used by immigrant entrepreneurs. A quantitative research technique was employed for the study. Questionnaires were distributed to one hundred and ten immigrant small business owners in Durban, all returned timeously, and they were viable. Statistical Package for Social Sciences (SPSS) was used for data analysis. The findings from the study revealed that lack of infrastructural facilities, lack of adequate security, high rentals, and difficulties in obtaining business permits are challenges faced by immigrant entrepreneurs. However, pricing was identified as the major strategies used by the immigrant small business owners to boost their business strategy, hence the study recommends the need for government intervention and improved policy development to enhance the growth of informal small businesses in Durban, South Africa.