Why our economy needs foreign owned businesses, and how we benefit from them

Photo: A foreign shop owner stands guard inside his Alexandra spaza shop. EWN/File.

Research by Dr Sally Peberdy of the Gauteng City-Region Observatory (GCRO) shows that far from taking jobs from South Africans, more foreign shop owners in Soweto employ locals that local entrepreneurs.

The research has come into the spotlight after last week’s Soweto attacks sparked by a Somali shop owner allegedly shooting a 14-year-old boy.

Peberdy’s research shows that a majority of foreign nationals who are entrepreneurs are trading legally, and that if the government were to “stop” them from doing business, South Africans would suffer just as much as the foreign nationals.

What we have in terms of foreign traders are people who are creating employment, providing employment for themselves, as well as creating employment for other people. So by trying to put people out of business it would be hurting ourselves, we find that also those traders are buying goods from the formal sector … many of those formal sector suppliers are employing South Africans and are South African businesses … they pay some tax through that. So we would be losing out a lot if we put foreign owned businesses out of business

Researcher, Dr Sally Peberdy

Speaking on 702 after questions were raised around her comments that foreign nationals should share their ideas with local business owners, Minister of Small Business Development, Lindiwe Zulu reminded South Africans that our historical background has disadvantaged a majority of “black South Africans who were left out from participating in the economy of the country”.

Perdeby acknowledged that while Minister Zulu’s point is true, the questions need to be guided towards government to find what the government is doing to better equip local entrepreneurs.

We found that South Africans were more likely to be starting their businesses with less than R5000 than foreign owned businesses … So what we need to be looking at is how do we enable South Africans to capitalize their businesses and find access to capital because we do know that lack of capital does hinder people’s ability to develop business

Researcher, Dr Sally Peberdy

Contrary to the perception that foreigners are “taking over” the informal sector, Perdeby’s research found that 2 out of 10 informal business owners were South African as were nearly nine out of 10 (87%) of formal sector business owners.

The attacks on foreign migrant entrepreneurs and the suggestions to shut them down and so on, is actually going to hurt South Africans, and what we’ve seen in Soweto is a minority of people who are intolerant plus some criminals and opportunists and they are hurting not only those foreign business owners but they are hurting South Africans

Researcher, Dr Sally Peberdy

Listen to Dr Perdeby explain how shutting down foreign nationals’ businesses will have an adverse effect on jobs, rent, suppliers and tax in South Africa:


This article first appeared on 702 : Why our economy needs foreign owned businesses, and how we benefit from them


Recommended

by NEWSROOM AI
Read More
Twitter clean up results in celebrities losing millions of followers

Twitter clean up results in celebrities losing millions of followers

On Technobyte this week we look at why have some of your Twitter followers disappeared and review Jabra’s latest wireless earbuds.

Mom-to-be? Why your mental health is critical during and after pregnancy

Mom-to-be? Why your mental health is critical during and after pregnancy

Specialist psychiatrists Dr Mashadi Motlana and Dr Lavinia Lumu talk motherhood and mental health.

We are ready for any action which intends to undermine Sassa - Minister Shabangu

We are ready for any action which intends to undermine Sassa - Minister Shabangu

Eusebius McKaiser speaks to Minister of Social Development Susan Shabangu on grant payments debacle and social security.

Poisonous Bullets: The Silent Betrayal of Sindiso Magaqa

Poisonous Bullets: The Silent Betrayal of Sindiso Magaqa

Eusebius McKaiser speaks to EWN KZN reporter Ziyanda Ngcobo about her three-part documentary into the death of Sindiso Magaqa.

It's time to talk openly about the pain of endometriosis, says Dr Eve

It's time to talk openly about the pain of endometriosis, says Dr Eve

10% of women globally will suffer from endometriosis during their fertile years, but where's the public dialogue on the condition?

Post-Parly brawl Minister Zulu: 'To those disappointed with me, I apologise'

Post-Parly brawl Minister Zulu: 'To those disappointed with me, I apologise'

Minister of Small Business Development, Lindiwe Zulu has since apologised after having to be physically restrained in Parliament.

Popular articles
Nhlanhla Nene asks trade unions for ideas on how to fund wage increase demands

Nhlanhla Nene asks trade unions for ideas on how to fund wage increase demands

Nene asked unions representing Eskom workers to provide ideas to fund wage increases after negotiations with Eskom deadlocked.

[WATCH] Man finds it hard to open his Zam-Buk & pleads for an easier opening tin

[WATCH] Man finds it hard to open his Zam-Buk & pleads for an easier opening tin

Tourists wake up at the crack of dawn to bag the best sunbed and one man even suffers a broken toe in the melee.

How Steinhoff shares doubled in just five days

How Steinhoff shares doubled in just five days

Founder of Herenya Capital Advisors, Petri Redelinghuys, explains how the embattled Steinhoff managed to double its share price in 5 days

Parents no longer have to travel with children's birth certificates

Parents no longer have to travel with children's birth certificates

The new Home Affairs upgrades to the system include printing parents details at the back of the child's passport.

Woolworths explains reasons for rice mix recall

Woolworths explains reasons for rice mix recall

The retailer announced it is recalling its rice mix product for fear of contamination with the Listeria bacteria.

Home Affairs set to undergo an upgrade in move to paperless system

Home Affairs set to undergo an upgrade in move to paperless system

A new live capture system will cover birth, marriage and death registrations.

Criminals targeting homes with aluminium windows, warns neighborhood watch

Criminals targeting homes with aluminium windows, warns neighborhood watch

The Panorama, Welgelegen and Plattekloof Neighbourhood Watch has identified a new house break-in trend.