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International Journal of Economics, Commerce and Management Research Studies

Volume 1, Issue 1, August - 2018

A Comparative Study of Entrepreneurs Processes


between Immigrant and Local Entrepreneurs
Precious Pearl Modise
Faculty of Business
University of Botswna Gaborone, Botswana

Abstract:- This paper studies how migrant entrepreneurs cost-effectiveness (Bessant & Tidd, 2015). Moreover,
become more successful in their foreign countries than the innovation impacts businesses and employment positively as it
locals. In an effort to increase research on the makes firms grow much faster and creates employment
entrepreneurial processes followed by migrant and local respectively (Mitra, 2017). Innovative ideas are turned into
entrepreneurs, the researcher interviewed 10 market opportunities (Raposo, 2011).
entrepreneurs; 5 migrant and 5 locals in Gaborone,
comparing how both groups identify opportunities, how According to Fayolle (2007) entrepreneurship is about
they acquire resources and how they use them to take up creation and seizing of business opportunities. Since
opportunities. According to this research, success means entrepreneurship is important to economies, it makes it
personal achievement as well as satisfaction with the important to know the entrepreneurial processes, which may
performance of a business venture. Findings indicated that lead to success in business (Ali, 2013). According to Baum
just like locals, migrant entrepreneurs either identify the (2007) the entrepreneurial processes are; emergence of
opportunity themselves or it is identified by someone else, entrepreneurial opportunities from the changes in economy,
but what differentiates them from locals is that they social and technological advancements. An entrepreneur then
capitalize on it immediately. Furthermore migrant recognises the opportunity, evaluates the opportunity before
entrepreneurs use their own savings, bootstrap and use capitalising in it. After garnering resources, they then exploit
resources wisely because it is hard for them to obtain the opportunity to create value for themselves and their
assistance in a foreign country to take up the opportunity. communities. These processes helps an entrepreneur to seize
Therefore, the analysis concludes that local entrepreneurs on opportunities and gather all resources needed to be able to
should do likewise to improve their chances of success. run sustainable ventures, create employment and provide good
This research will not only help local entrepreneurs; quality goods at affordable prices (Kunene, 2008).
government will benefit government on formulating
effective policies which would lead to entrepreneurial There are five entrepreneurial stages in the
success of local entrepreneurs, hence, the development of entrepreneurial processes being discovery, concept
the country. development, resourcing, actualisation and harvesting (Ali,
2013; center for entrepreneurship and innovation, 2017; Shih,
Keywords:- entrepreneurial processes, migrant entrepreneur, 2014; Edom, 2016). However, there is confusion as to what
success. should be included in each stage, For example; Centre for
Entrepreneurship and Innovation (2017) included planning in
I. INTRODUCTION the resourcing stage of which other authors included in the
concept development stage. Again, Kunene (2008) included
Due to entrepreneurial qualities of individuals, social and activities like, marshalling of resources, which are on the third
economic reasons, people find themselves either pulled or stage according to other authors, on the second stage. Finally,
pushed into entrepreneurship (Canadian Council for Small according to Kunene (2008), the five stages overlap, connect
Business and Entrepreneurship, 1994). Those that are pulled and depend on one another, hence, the need for the researcher
are usually opportunistic entrepreneurs and those that are to investigate the entrepreneurial processes and how they
pushed are mostly necessity entrepreneurs (Wilkinson & differ amongst migrant and local entrepreneurs.
Kannan, 2013). Entrepreneurship is viewed as an agent of
economic and social development for countries as it also helps A. Background Information
in policy making (Audretsch, 2006). According to According to Jerinabi & Santi (2012) some
Schumpeter’s technology regime 1, Entrepreneurship is very entrepreneurs end up pursuing their entrepreneurial dreams in
important to the economy of each nation as it makes other countries. The two authors further stated that this is
businesses innovative through creative destruction as made possible by globalisation which has made the
businesses render current products and technologies obsolete movement of capital and labour much easier. Economies are
through new inventions (Stel, 2006). This in turn helps moving towards creation of one world market so entrepreneurs
consumers get the best quality goods and services at a are moving across borders looking for attractive business
reasonable price, which is achieved through efficiency and opportunities (Azais, 2010). Governments are also doing their

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
best to promote trade at the same time protecting local C. Research Objectives
businesses (Government of Dubai , 2011), Botswana is one of  To understand how local and immigrants entrepreneurs
the countries where the government supports entrepreneurship identify opportunities
by giving loans at low rates, grants and policies which support  To understand how local and migrant entrepreneurs
entrepreneurship but still immigrants are more successful in acquire resources needed
businesses than locals (Jones, 2014; T.B., 2012). According to  To determine how they use the acquired resources
the researcher, Batswana ventures are equally important in
contributing to the country’s Gross Domestic Product (GDP)
so locals could do like their counterparts to improve their D. Research Question
ventures and not waste Government resources.  Main Research Question
Why are immigrants more successful in business than their
B. Problem Statement local counterparts from the process perspective.
With high unemployment rates especially amongst the
youth, the Government of Botswana is investing a lot on local  Specific Research Questions
entrepreneurs with the expectation that their firms will survive  How do local and immigrants entrepreneurs identify
(Johnson, 2011). In Botswana, the government give loans to opportunities?
locals up to two million pula at the lowest interests of about  Where do local and migrant entrepreneurs acquire
7% per year (Embassy of Botswana, 2010). In addition, Jones resources needed?
(2014) argued that grants, training and favourable policies are  How do they use the acquired resources?
also offered in favour of Batswana hoping they will be
successful. However that is not the case as many Batswana E. Hypothesis
businesses are failing within a period of five years. Self-  Locals wait for other people to present an opportunity to
employment levels of immigrants exceeds the national average them while immigrants identify opportunities themselves
in most countries as new start-ups are mostly owned by then act immediately (Jones, 2014).
immigrants (Mthembu-Mahanyele, 2002).  Local entrepreneurs mostly rely on their governments to
provide required resources in starting and running
Immigrants are successful because they take advantage businesses, on the other hand, immigrants are independent
of the opportunity very fast with the little resources they have of themselves (Patel, 2010)
(Jones, 2014; Patel, 2010). Moreover, Patel (2010) argued that  Locals misuse resources whereas immigrants manage
immigrants learn the industry they are in and think big but resources well and use them efficiently (Patel, 2010).
start small. He further stated the advantages of starting small
by arguing it allows immigrants to learn different skills at the F. Significance of the Study
same time as they usually start with a few employees and This study is very important because it will help local
focus more on making customers happy. entrepreneurs on how to identify innovative ideas and run
successful ventures by benchmarking on what immigrants are
According to Patel (2010), unlike immigrants, locals doing. It would also help the government on formulating
receive free education in tertiary institutions, free training and effective policies which would lead to entrepreneurial success
are being mentored for free, receive loans which are below of locals then tax those firms to improve infrastructure of the
market rates and are also favoured in tenders but still their country.
firms do not grow up to five years. He further stated that
having everything at their disposal make them to want to start G. Conceptual Clarification
big rather than starting small, they do not see the need to Migrant; A person who lives temporarily or permanently
bootstrap, network nor research. In addition, he said obtaining in a country where he or she was not born, and has acquired
favours from the government makes them not to feel the sense some significant social ties to the country (UNESCO, 2017).
of urgency and drive to take advantage of opportunities as
they arise and become innovative. He concluded by stating Immigrant; Kim and Diaz (2013) defined an immigrant
that locals only want to spend not make money, hence, their as a foreign-born person who enters a country with the
businesses are not sustainable. intention to settle permanently.

During the research, the researcher noted that authors do  Entrepreneur; the person who sorts out and accept the
not compare entrepreneurial processes followed by local and danger of a business or endeavour (Pinderhughes, 2004).
immigrant entrepreneurs which gives immigrants an upper Success; includes dimensions of both personal and
hand in business. Thus, this research aims to investigate on business success. Business success meaning satisfaction with
how entrepreneurial processes differ amongst local and the business performance and personal success include
migrant entrepreneurs, leading to the following research dimensions as self-fulfilment, goal achieving and balance of
objectives and questions. work and family (Faculty of Administration; university of
Regina, 2016).

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
Innovation; is when new ideas are being exploited (Neely & Moreover the entrepreneurial process differ amongst
Hii, 1998). business ideas, for example, innovative ideas would not follow
the same processes as imitative ideas; Schumpeterian ideas are
Entrepreneurship; Ireland, Hitt & Sirmon (2003) defined innovative and rare to find in nature whereas Kirznerian
it as a context dependent social process through which opportunities are incremental and common (Jong, 2011).
individuals and teams create wealth by bringing together
unique packages of resources to exploit marketplace There are five entrepreneurial stages in the
opportunities. entrepreneurial processes being discovery, concept
development, resourcing, actualisation and harvesting (Ali,
H. Literature Review 2013; center for entrepreneurship and innovation, 2017; Shih,
The first section critically analyses the entrepreneurial 2014; Edom, 2016). However, there is confusion as to what
processes. It then goes on to explain the factors that make should be included in each stage, For example; Centre for
entrepreneurs successful and finally, it narrows down to Entrepreneurship and Innovation (2017) included planning in
arguing about what makes migrant entrepreneurs better the resourcing stage of which other authors included in the
entrepreneurs. concept development stage. Again, Kunene (2008) included
activities like, marshalling of resources, which are on the third
 Entrepreneurial processes stage according to other authors, on the second stage. (See
There is an agreement amongst authors on the definition table at appendix 2 showing the stages of the entrepreneurial
of entrepreneurial processes. They all define it as a series of processes as described by different authors). Finally,
stages, events and activities that a business venture goes according to Kunene (2008), the five stages overlap, connect
through due to an individual taking initiative. Entrepreneurial and depend on one another.
process involve all capacities, exercises and activities which
are related with the acknowledgment of entrepreneurial open  Factors that make entrepreneurs successful
door, and also composing a strategy for success, setting up an In the view of Dalziel (2008) entrepreneurial success is a
association and establishing the venture itself, considering the result of personality traits and social networks as well as
vital assets, guaranteeing the reasonable market foundation of strategy (resources and capabilities). According to him
the undertaking and the accomplishment of development personality traits, being; persistence, dedication, tolerance for
(Shane & Venkataraman, 2000). ambiguity and risk and the need for achievement determine if
one will be successful or not. They influence entrepreneurial
According to Getz et. al (2004) it speaks to the level one undertakings, therefore, cultural differences may affect the
channel and is a cooperation of a complex, multi-dimensional performance of a firm as cultures are associated with different
and dynamic arrangement of elements and conditions which personality traits (Dalziel, 2008).
emerge from attributes and states of mind of individual
business people who are inspired to partake in enterprise as a Furthermore, he suggested that social networking is key
result of hereditary cosmetics and social advancement inside to successful businesses. He argued that where there is trust,
their host group's way of life. Moreover, Davidson (2008) people work with one another therefore their firms tend to
defined it as the cognitive and behavioural steps from coming perform better than those who do not network but when social
up with a business idea, or first actions towards the networks take priority over economic reasons, it may lead to a
recognition of an innovative business activity until the process firm’s failure. To elaborate his point, he gave an example of
is either ended or has led to an up and running venture with hiring relatives who are not qualified as a contributing factor
consistent sales. Welter et.al (2012) defined the processes as to failure. Maslovskis (2013) also emphasised the need for
how business people build up their business and get to basic networks by arguing that interaction with other people is key
assets in times of crisis and which roles learning and in business as one gets to communicate their thoughts and
advancement play in consistent venture improvement. opinion to others who then help in finding customers,
suppliers and other critical elements for the survival of a
Entrepreneurial processes are grouped into two business.
categories, namely: Internally stimulated, where an
entrepreneur has the desire to start a new venture therefore Moreover, a strategy is another factor that is critical for
actively looks for business opportunities. Ideas are evaluated the survival of every business in a competitive environment as
before one decides on what to venture into. Another category it helps the business to assess both its internal and external
is; externally stimulated where an entrepreneur first environment (Dalziel, 2008). A Strategy is a plan of action
encounters a problem with a current product then improves it through which an organisation relate itself with the
(Bhave, 1994; Davidson, 2008). He summarised the two environment to achieve the objective (Senapati, 2015).
categories a diagram at appendix 1. According to (Dalziel, 2008) a strategy comprises of both
resources and capabilities. He explained capabilities as what
the firm can do best which differentiate it from its competitors,
and it includes good management and marketing skills

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Volume 1, Issue 1, August - 2018
whereas resources include capital equipment, financial and the B. Sampling Technique
human resources. He argued that human resources help a firm Ten successful participants were interviewed; 5 local and
to achieve its goals and offer a competitive advantage only if 5 immigrant entrepreneurs, all from the Information
they have the expertise, knowledge and skill to do the required Technology industry. Snowballing was suitable because it
work. Finally, financial resources help a firm to be able to buy made it easy to identify successful entrepreneurs in the IT
the equipment needed, pay their day to day expenses as well Industry. In snowballing technique, a researcher makes contact
as attract competitive human resource (Dalziel, 2008). Even with one to two cases in the population who then identify
though these success factors are applicable to both local and other cases until the sample is large (Saunders et.al (2012) ).
migrant entrepreneurs, migrants have an upper hand in
business hence the need to narrow it down to examine what C. Data Collection Technique
makes them successful than their local counterparts. The choice of data collection instrument depends on the
type of questions a researcher asks. Data collection techniques
 Why migrants become better entrepreneurs relative to include questionnaire, interviews, observation, experiment,
locals focus group discussion (Saunders, Lewis, & Thornhill, 2012).
Patel (2010) argues that immigrants are more successful For this research, data was collected through interviews, as it
because they come to make money; profits are the primary was the most suitable; it allows the researcher to collect more
reason and happiness comes last which makes which results in information from the questions she asks. The questions are
immigrants finding ways to work for more hours. According structured to help the researcher to ask multiple participants
to him, locals are taught to do what makes them happy the same questions thus achieving data saturation (Fusch &
therefore, work for few hours. He further argued investors Ness, 2015).A set of questions were prepared, guided by the
love immigrants and also, immigrants are united and help one research questions (See questions at appendix According to
another succeed. Furthermore, he argued immigrants believe Saunders et.al (2012) advantages of an interview is that it
saving money is easier compared to earning it so they are allows the researcher to make follow up questions. Moreover,
always negotiating discounts and bootstrap a lot. Fairlie it reduces the risks of getting distorted information as it is a
(2012) agreed with Patel (2010) argument that immigrants rely one on one interaction (Kajornboon, 2005).
on personal savings, family and friends as sources of funds
whereas locals rely on banks and other financial institutions; D. Sources of Information
they have wider options but still immigrants do well in The researcher interviewed 5 local and 5 migrant
business and own a lot of businesses compared to locals. Lack entrepreneurs based in Gaborone because the place was the
of other job options and the need for social networking are most accessible. Also there were time and financial
other factors which gives immigrants an upper hand in constraints, hence the choice of location.
business (OECD, 2010). Moreover, Patel (2010) argued that
immigrants never find it too late to go back to school E. Data Analysis
especially when firms are not doing so well, they would rather Data was analysed qualitatively because mostly words
do online and night time classes. On top of that, they never were used to explain the differences in entrepreneurial
take “no” for an answer, they believe they can turn a “no” into processes between migrant and local entrepreneurs (Saunders,
a “yes!” to them “no” means “not right now” which could later Lewis, & Thornhill, 2012). The researcher used content
turn convert a “yes!” (Patel, 2010). He argued that immigrants analysis to analyse the cases because she wanted to enrich her
rarely complain about their lives, they believe it will better understanding on entrepreneurial processes and how they
with time because usually those conditions are way better than differ amongst local and migrant entrepreneurs which gives
where they were before in their countries of origin. He migrants an upper hand. Case study interviews provides a
concluded that immigrants believe their current situation does richer content for analysis because of its depth of interaction
not define their destiny. between interviewees and interviewers (Trace, 2001). An
The researcher had to collect her own data from entrepreneurs author further stated that in case study analysis, a researcher
rather than relying on secondary data only. identifies themes relating to her research. For this paper,
themes were derived from opportunity identification and
II. METHODOLOGY resource mobilization.

A. Study Design F. Ethical Considerations


There are various methods that one can use during Saunders et.al (2012) define ethics as “standards of
research. The choice of method depends on the type of behaviour that guide conduct in relation to rights of those who
research questions and objectives (Maart, 2011). They are become the subject of your work, or are affected by it.”
summarised at appendix 3.Multiple case study was suitable for Participation was voluntary and they had a right to withdraw
this research because it tries to explain present circumstances. at any time if they wished. All information gathered was
Moreover, case study answers the how and why questions so it treated with confidentiality and used strictly for research
is used when the researcher wants to study reality in depth purposes. Again, the researcher had to respect their privacy
(Maart, 2011). (anonymity). See appendix 5: consent form

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Volume 1, Issue 1, August - 2018

Entrepreneur Content and coding Themes interview script should be sent to them via email so the
researcher was not able to ask follow up questions.
1 Identified a problem that he Experience
 Sample size; the study collected data from a sample
had to be near his music
equipment to play music so therefore restricts generalization of the results to the whole
he developed a device that population.
allowed him to play music  The research was limited to the Information Technology
from his phone. (IT) industry.
2 Observed a gap in the Observation
marketing companies so he III. ANALYSIS OF DATA AND DISCUSSIONS AND
came up with innovative FINDINGS
ways of marketing products
and services. A. Data Analysis
3 Realised that children are so Observation
Opportunity Identification
creative so she developed an
application to enhance
creativity.  How do entrepreneurs identify opportunities?
4 Realised a problem of lack Observation, 8 themes were derived under opportunity identification
of skills in business experience
Sources of opportunities for locals are; passion, experience
innovation and marketing so
and observation whereas for migrants are all of them. See
he solved it by helping
companies market appendix 6
themselves.
5 Realised there was a need Passion,  How long do migrant and local entrepreneurs take to
for efficient data collection observation actualise the idea? And why
developed software and
hardware solutions to
enhance efficiency
6 In his previous job, he Experience,
realised there was a gap in passion,
the market which he wanted observation
to fill. he helps customers
solve document management
issues
7 He followed his heart by Passion,
providing institutions with information
laboratory equipment.

8 there was shortage of power Observation,


in the country so he pursued information
the opportunity by providing
solar lighting solutions
9 Provides laptop both Passion,
software and hardware observation
solutions. she was motivated
by passion and skills she had
10 Observed there was a gap in observation
the market, there were a few
people who could offer
software and hardware
solutions

G. Limitations of the Study


 Lack of data; some entrepreneurs who agreed to be take
part said they had tight schedules and did not really have
time for interviews. As a result, they suggested that the

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Volume 1, Issue 1, August - 2018

entrepreneur Content and coding themes


Took a year due to lack of skills scarcity
7 years due to lack of resources Scarcity
4 months due to shortage of Skills, money, equipment Scarcity
4 1 year, 4 months; resources were in short and he had to do market research. Scarcity, research

He needed to find qualified staff, acquire finances and assets. Reluctance of decision makers in Scarcity, research,
organisations who were delayed. He also did market research so he actualised after 3 years reluctance

Acted immediately but employees were not committed reluctance


Acted immediately but the government had policies which were not supportive regulations
2 years due to government regulations and market research Regulations,
research
Garnered resources and did market research for a year

3 years, Was faced with lack of capital and reluctance of her business partner Scarcity, research,
reluctance

From the above themes, those that were applicable to


locals were; reluctance, research and scarcity while for
migrants, all the themes were applicable. They were delayed
by regulations, reluctance, research and scarcity to actualise
their ideas. See appendix 7.

B. Resource Mobilisation
 How Did You Acquire The Most Critical Resources
For Starting The Business?
For this research, there were only four Resource types
that the researcher looked into; financial resources, social
capital, human capital and tangible/physical assets. The author
came up with seven themes.

Entrepreneur Content and coding themes


1 Used the internet to educate himself of the music components, used savings. He also Bootstrapping, Savings,
recycled old parts which. Because he was already in the industry, he had already Education, relationships
established network. Finally, media companies sponsored him to market his product.
2 Bootstrapping and personal savings financed his product. Botswana Innovation Hub also Bootstrapping, savings,
incubated him to accessing critical resources. Skills on marketing made resources much incubation, education
more accessible.

3 Her family helped her anyhow they could and gave her support. Bank also assisted with a Relationships, banks
loan.
4 Business partner assisted him and also, relied on his allowance to finance his business. Relationships, savings,
Moreover, he bought second hand equipment and hired some resources he could not bootstrapping
afford.

5 Angel investors helped with funding. BIH also incubated him to access critical resources. Incubation, loan

6 Relied on the skills and experience from his previous job and saved money to start this Relationships, education,
business” He also said that as he was interacting with his potential customers, they gave savings

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him advice.

7 His uncle helped him access resources. He also obtained a loan from a bank. Relationships, bank
8 Saved money from her previous job and bootstrapped. Also, her friend helped her garner Relationships, savings,
critical resources she needed. bootstrapped

9 Mentor assisted her. Also, she was financed by friends and family Relationships

10 Was assisted by family and business partner who motivated her and gave financial Savings, relationships,
support. She also contributed her skills to the business and money she had saved to pursue education
the opportunity.

Locals managed to acquire resources by bootstrapping,


incubation, savings, education, relationships and banks. As for
migrants, they garnered critical resources just like locals,
except for incubation. Visit appendix 8 for more information

Success
 How Do You Define Success, And Would You Say
You Are Successful?
Nine themes emerged

entrepreneur Content and coding themes


1 Having achieved the set goals so he felt he was victorious as he achieved the goal of wanting goals
to see his product work but has not achieved another goal of wanting to broaden his market
share. He said he was successful to some extent

2. Enabling other people to pursue what they want so he believed he was not yet successful. Delivering

3 To be able to still see your vision despite failures on the way, to study failures and learn from Experiences, growth
them and never quit. She believes she has failed as far the Botswana market is concerned.
However she believes other markets in Africa might give her better results.

4 An accomplishment made due to previous bit of achievements and failures experienced. She Experiences, goals,
stated that she is successful, based on the success criteria they use. profits, delivering,
5 Positive bank balance, good and committed employees and long term contracts with clients. He Profits, delivering
believes he is on the road to success.

6 being able to sustain oneself and everyone around, making profit as a shareholder and Profits
overcoming day to day challenges so he believes he is successful
7 Having principles, being committed and delivering to customers is what makes him successful. Delivering, goals,
He believes he is successful
8 Providing the market with its needs and generating enough profits. She believes she is Delivering, profits,
successful. She added that her success is due to good customer service.
9 accomplishment of goals so she believes she is not yet there as her business not internationally Goals. growth
recognised,

10 Reaching both personal and business goals so since her business has expanded she considers Profits, goals,
herself successful. growth

Both migrant and local entrepreneurs defined success in a  What Distinguishes Your Firm From Others You Are In
similar manner. See appendix 9 The Same Industry With?

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entrepreneur Content and coding themes
1 He differentiated himself by giving customers a choice to play the music from a distance, they Convenience
don’t necessarily have to be near the music equipment.

2 constantly innovating and reinventing Innovation


3 She said, “We believe a child must learn on their own pace and our competitors still follow the Convenience
traditional way of teaching with one teacher, directing up to classes of 40 students and all
expected to follow a unison.”

4 customer service and work ethic are on point service


5 Provide innovative technologies, with proven records and results. Also they customise their Innovation,
services for clients thus meeting individual needs. customisation

6 I do not focus on my competitors; I focus on myself because focusing on my business help me convenience
achieve the goals I had set for the company. Focusing on competition makes one lose focus
because you always want to be a step ahead of them.”

7 good customer service and charging reasonable prices helps them beat the competition Service
8 Customer service Service
9 “We serve the needs of our customers and give a great customer service.” she said Customisation,
service
10 good customer service and going an extra mile service

Local entrepreneurs managed to distinguish themselves the idea (Edom, 2016). From the interviews, other locals were
from the competition through innovation, convenience, good passionate whereas others were fuelled by the fact that there
customer service and customisation while migrants relied on was a problem they wanted to solve and/or a gap which they
innovation, customisation and a good customer service to wanted to fill.
differentiate them from their competitors. See appendix 10.
Migrant entrepreneurs; on one hand, migrants that
C. Discussions stayed in Botswana identified the opportunity themselves but
 Opportunity Identification those who were away had the opportunity identified by friends
Local entrepreneurs; Findings showed that all and/or family who then informed them of the opportunity to
entrepreneurs identified the opportunity themselves. come and pursue. All of the five migrant entrepreneurs were
According to Edom (2016) the opportunity can be identified bridging a gap in the market. This is contrary to (Jones, 2014)
and evaluated by an entrepreneur. As per literature (Ali, 2013) when he argued that locals wait for other people to present an
some identify such opportunities to solve problems, some opportunity to them while immigrants identify opportunities
want to fill gaps they identified in the market while others themselves.
observe trends. Due to resource shortage and market being
sceptical, all local entrepreneurs took a longer time to take up Most migrant participants were motivated by passion,
the opportunity which was attractive to them. According to some were motivated by both passion and the venture’s
Allen (2016), at start-up the aim is to build a combination of lucrativeness. Having passion for what they were doing, they
resources that will help the new venture to start and function were motivated to actualise the idea immediately. One other
until sales of the product or service yield a positive cash flow, entrepreneur said,’ I wanted to solve a problem in the market
but those resources usually are not sufficient (Leach & and also make something for myself and leave a legacy.’ So it
Melicher, 2015). made him take advantage of the opportunity immediately. All
of them acted on the opportunity within a period of three years
Some were delayed by wanting to do market research unlike locals who took up to seven years to capitalise on the
first, which according to (Edom, 2016) is critical for a start-up opportunity. It is important to pursue the opportunity while the
as it gives an insight of the market to help make informed window of opportunity is still open (Kaiser, 2008).
decisions. One participant stated said ‘I conducted a market
research and checked whether there was anyone doing what I Just like their local counterparts, they were faced with
was proposing’ which means market research can be done to challenges of shortage of resources but managed to garner
know about the competition and how they can provide better them much faster than locals due to networks which they
products or services than the competition. Motivation also formed much faster and bootstrapped. Other challenges they
play a role in helping entrepreneurs actualise their idea much were faced with were that some business partners and other
faster, moreover, one has to be talented and passionate about key stakeholders were not committed as they were. Social
loafing is due to lack of commitment and failure to perform

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their own share of work (Williams, 2013). Some of the participants relied on the skills they had. On one hand,
migrant respondents stated that they were also delayed by majority of migrants stated that they ventured into something
wanting to study the market first. Others complained about they had skills, expertise and experience on. The other one
government regulations which delayed their idea actualisation. was helped by her friends, the last one was assisted by family,
The said that the government policies favours locals over them friends and her mentor to be equipped skills needed. She did
which makes it hard to do business in Botswana. According to not have the required skills.
(Government of Dubai , 2011) Governments are doing their
best to promote trade at the same time protecting local  Social Capital
businesses. One entrepreneur gave an example of him not Locals; BIH helped some participants to establish
allowed to supply his products directly to government schools, networks during the incubation process. One said that the
only local entrepreneurs can do so he is forced to target local industry was new so he did not know anyone but the other one
entrepreneurs as his customers. said it helped her form alliances with an American Company
and the Ministry of Education (who is their potential
D. Resource Mobilisation customer). Another interviewee said that he has long been in
 Financial Resources the industry so he already established links.
The other hypothesis was that local entrepreneurs mostly
rely on their governments to provide required resources in Migrants; the first interviewee established networks way
starting and running businesses while immigrants are before he started a business as he long worked in the industry,
independent of themselves (Patel, 2010). This is in conflict Others were helped by friends and friends. Another one said
with the findings which showed that both locals and migrants he knew his uncle only when he first moved to Botswana. The
relied on their savings and bootstrapped; their incubators, last one was helped by her mentor to establish relationships.
families and friends, except for a few entrepreneurs who got According (OECD, 2010) the need for social networking is
funded by banks and one who was financed by an angel one of the factors which give immigrants an upper hand in
investor. business. Social capital has positive impact on new venture
performance (Morone, 2013; Andressen, 2016). Zhao (2015)
The last hypothesis also varies with findings. Hypothesis Argued that it is important for entrepreneurs to form new
stated that locals misuse resources whereas immigrants relationships depending on their own product/ service and
manage resources well and use them efficiently (Patel, 2010) stage of the life cycle, as well as adjust and maintain the
but findings show that they both use the funds efficiently current network. Moreover, he argued that networks help in
because they usually want to enjoy Return on Investment accessing the market and gaining technical knowledge.
(RoI) within a reasonable time. Cooper& Burke (2011) Concluded that human capital
encourage opportunity recognition whereas social capital
 Human Capital promote opportunity exploitation resulting in sales and
Locals; other participants were incubated by Botswana revenues.
Innovation Hub, who equipped them with the skills they
needed for start-up, and he also had skills on the area.  Success
According to Cumming (2010) Business Incubation is one Majority of local entrepreneurs believed they were
way in which entrepreneurs are imparted knowledge on successful, to some extent, because they had not achieved
coming up with innovative ideas and sustainable businesses. some of the goals they had set to. The other participant did not
They achieve that goal by delivering services as technical and consider herself as successful because the market did not buy
administrative, and entrepreneurial knowledge (Thom, 2011). her product as they could not afford it. It is possible that
Moreover, they aim on nurturing new venture development customers do not buy the product or a service as an
through short term usage of buildings, access to investor funds entrepreneur anticipated (Edom, 2016).On one hand, all
through networking as other financial institutions are usually migrant entrepreneurs admitted they were successful except
reluctant to finance start-ups (Cumming, 2010). Business for one who said she would admit she was successful if her
incubation process is concerned with developing a venture products were internationally recognised.
from the current state to a desired state where it can be
competitive in a changing business environment through the According to (Faculty of Administration; university of
provision of critical resources and business support services Regina, 2016) success includes dimensions of both personal
(Phan, Mian, & Wadid, 2016). They are being mentored by and business success. They further argued that business
experienced entrepreneurs during the incubation process success means satisfaction with the business performance and
(Council of the European Union, 2014). Incubation helps all personal success include dimensions as self-fulfilment, goal
start-ups obtain all the resources they need to start and run achieving and balance of work and family. Some respondents
sustainable ventures. defined it as generating more profits, some explained that it
means achieving goals. Some participants said they define
The other one relied on the internet to research because success as growth. Each entrepreneurs had his /her definition
he had no expertise on what he wanted to venture into. Other of success. In the view of Dalziel (2008) entrepreneurial

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success is a result of personality traits and social networks as When summarising findings, the researcher found out
well as strategy (resources and capabilities). that Out of the ten entrepreneurs interviewed, six of them are
male, four are females both ranging from ages 18-70, most of
E. Competitive advantage them ranging between 18-30. Those who are not locals are
Some entrepreneurs had more than one reason which from the following countries; Central Europe, India, Zambia,
makes them successful compared to their competitors. Gambia and Ghana. All respondents ran their businesses for 1
Majority of respondents associated their success to good to 17 years. See summary of biographic information at
customer service and an excellent service which leads to an appendices (appendix 11).
increase in sales, customer satisfaction, repeat sales, improved
image and a competitive edge (Hayward, 2002). Other  Opportunity Identification
entrepreneurs said their success is due to constant innovation Findings showed that all locals identified the opportunity
and reinvention. Innovation destructs and creates new themselves but took time to take up the opportunity due to
industries and products, so it makes one to always be ahead of lack of critical resources and the market being sceptical. On
the competition (Cantner, Nesta, & Guffard, 2009). one hand, some migrant participants had the opportunity
Competitive edge of other entrepreneurs as per the findings is identified by relatives and friends who then invited them to
convenience. One other entrepreneur accounted his success to come to the country to pursue those opportunities. Those who
focusing on himself and goals he has set for the company, not were already staying in Botswana identified the opportunities
his competition, because he believes focusing on competitors themselves. All migrants acted on the opportunity within a
would make him lose focus as they always want to be a step period of three years unlike locals who took up to seven years
ahead. The other one attributed his success to customising to capitalise on the opportunity.
goods to his clients which means their needs are met.
According to (Altekar, 2012) other benefits of customisation is  Resource Acquisition
that it reduces costs such as inventory costs, spoilage; no G. Financial resources
capital gets tied in stock. Finally, success means having a Locals; other respondents said that they used their own
positive bank balance, according to one entrepreneur. savings and bootstrapped to start the venture whereas the other
one said he was funded by an angel investor. The other one
From the findings, migrant entrepreneurs are not borrowed from a commercial bank.
motivated by money to be successful, passion drives them so it
is at odds with Patel (2010) when he argued that they come to Migrants; some respondents stated that they
make money and happiness is secondary. bootstrapped and used their savings to start and run their
businesses. The other one was funded by bank and some by
F. Findings family and friends.
 Biographic Information
The first entrepreneur is male from Botswana, aged 31- H. Human capital
50, and started his business in 2011. The second respondent is Locals; other local participants were incubated by
also a male from Botswana who has been in the industry for 3 Botswana Innovation Hub, who equipped them with the skills
years, with his age ranging between18-30. The third they needed for start-up, and he also had skills on the area.
entrepreneur is a female from Botswana, with her age ranging The other one relied on the internet to research because he had
between 51 and 70 and has been in the industry since 2012. no expertise on what he wanted to venture into. The other two
The fourth entrepreneur’s age ranges between 18 and 30, she relied on the skills they had.
is a female from Botswana. Her business has been in existence
for a year now. The last local respondent is male and his age Migrants; other immigrants stated that they ventured into
is between 18 and 30, and has been running his venture for 5 something they had skills, expertise and experience on. The
years. other one was helped by her friends, the last respondent was
assisted by family, friends and her mentor. She did not have
The first migrant entrepreneur is from Central Europe, the required skills.
and is male with age ranging between 31 and 50. He has been
running his business since 2000. The seventh entrepreneur is a I. Social capital
male from India, his age ranges between 31 and 50. He has Locals; BIH helped other participants to establish
eight years in Botswana. He eighth entrepreneur is a Gambian networks during the incubation process; one said that the
national, female with ages ranging between 18 and 30. It’s industry was new so he did not know anyone, the other
been three years since she pursued this opportunity. The respondent managed to form alliances with an American
nineth respondent is a female from Ghana, with age ranging Company and the Ministry of Education (who is their potential
between 31 and 50, and has been running her business for 17 customer). Another interviewee said that he has long been in
years now. The last respondent is also female from Zambia, the industry so he already established links. Business partner
who pursued this opportunity since 2012. Her age ranges helped in establishing links for another respondent.
between 18 and 30.

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Migrants; another respondent established networks way contributing much despite the fact that their governments are
before he started a business as he worked in the industry, supporting and favouring them over migrant entrepreneurs.
others were helped by friends and family. One respondent said Migrants outperform them; they are more successful than their
he only knew his uncle when he first moved to Botswana and local counterparts so this research aimed at helping local
did not know a lot of people in the industry. The last entrepreneurs improve their performance and be competitive
respondent was helped by her mentor to establish as their counterparts. It wants to find out the entrepreneurial
relationships. processes followed by both locals and migrants which make
migrants more successful, hence the following research
 Success objectives;
Other local participants believed they were successful, to
some extent, because they had not achieved some of the goals  To understand how local and immigrants entrepreneurs
they wanted to; they said they had set milestones but they had identify opportunities
not reached some yet. The other participant did not consider  To understand how local and migrant entrepreneurs
herself as successful because the market did not buy her acquire resources needed
product as they could not afford it. On one hand, migrants said  To determine how they use the acquired resources
they were successful except one respondent who said she
would admit she is successful if her products are Literature attributed the success of migrants to
internationally recognised. networking, bootstrapping, savings and negotiations.
Moreover some authors associated the success of migrants to
Most entrepreneurs had more than one competitive determination, education and drive to make more money.
advantage. Majority of respondents associated their success to Before the researcher carried out his own research to find out
good customer service whereas other respondents said their what makes migrants outpeform locals , she did methodology
success is due to them constantly innovating and reinventing. to guide her on how to carry out research. Her methodology
Other participants said that convenience is what differentiated allowed her to interview 10 entrepreneurs from the
them from the competition. The last one accounted his success Information Technology industry in Gaborone; both locals and
to focusing on himself and goals he has set for the company, migrants represented. they were selected through snowballing
not his competition, because he believes focusing on technique. Data was analysed qualitatively using the content
competitors would make him lose focus as they always want analysis. From the data analysis, it was found out that
to be a step ahead. authour’s hypothesis were inconsistent with the findings. As
per the findings, locals identify the opportunity themselves but
From the findings and analysis, sources of opportunities take too long to actualise due to lack of resources but
for locals are; passion, experience and observation whereas for migrants, some had the opportunity identified by their friends
migrants are all of them. What delays locals to actualise or family so they quickly moved to Botswana immediately to
opportunities were reluctance, research and scarcity o persue the opportunity with the little resources they have. Both
resources while for migrants, all the themes were applicable. groups stated that they manage resources effectively. Having
Locals acquire resources by bootstrapping, incubation, noted some of the factors that make migrants outpeform
savings, education, relationships and banks. As for migrants, locals, the researcher made the following recommendations;
they garnered critical resources just like locals, except for
incubation. B. Recommendations
 Since all interviewees were pulled into entrepreneurship
Both migrant and local entrepreneurs defined success in (they spotted opportunities in the market and pursued
a similar manner. Local entrepreneurs managed to distinguish them) and became successful, local entrepreneurs should
themselves from the competition through innovation, move from being necessity entrepreneurs to opportunity
convenience, good customer service and customisation while entrepreneurs. Reasons why they choose entrepreneurship
migrants relied on innovation, customisation and a good should be from within, not due to external factors.
customer service to differentiate themselves from their  Business planning stage and market research are not
competitors. The results of the research are vital in the critical at start up; participants channelled their energy in
formulation of conclusion and recommendations to help local gathering critical resources they needed and took
entrepreneurs improve their performance. advantage of the opportunity immediately. Majority of the
participants became successful without detailed business
IV. CONCLUSIONS AND RECOMMENDATIONS plans, again, Majority of the participants did not research
the market. They took the risk of making products/services
A. Conclusions then tested them in the market, and as they interacted with
Entrepreneurship is vital in every economy so each clients, they gave them suggestions on how to improve
entrepreneur should aim to be successful to help governments their products/services which led to their success. Aspiring
in improving the welfare of individuals and improve their entrepreneurs should skip those stages but I suggest further
standard of living. However, local entrepreneurs are not

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research to be done to confirm if these two activities are being motivated by money is short term which won’t make
really necessary for success. their business sustainable or survive in the long run.
 I suggest aspiring local entrepreneurs should put more
effort into their businesses; save and bootstrap as opposed APPENDICES
to grants, so that they can feel the urgency for their Appendix 1; internally and externally stimulated opportunities
businesses to start paying off. All successful local
entrepreneurs interviewed did not get any grant or funding
from government organisations as Citizen Entrepreneurial
Development Authority (CEDA).
 Local entrepreneurs must go for training in business
development support providers such as Local enterprise
Authority (LEA) or go for business incubation in
organisations as Botswana Innovation Hub, attend
seminars, expos and events if they do not have the skills
and expertise necessary to successfully run their ventures.
They also offer guidance on how to do business, help them
network, and information on obtaining finances.
 Local entrepreneurs should start their business with the
little resources they have to allow them to pursue the
opportunity while the window of opportunity is still open.
Waiting on to garner resources first extends the time taken Source; (Bhave, 1994)
to actualise the idea.
 Local entrepreneurs must be strategic so that they can beat
their competition. They have to have a competitive Appendix 2; a summary of the stages of the entrepreneurial
advantage. All participants had a competitive edge. processes by different authors
 Money should not be the only determinant of whether a
business is successful or not. They should also set other
objectives to achieve that go beyond just profits because
Author and year Attributes covered in definition of entrepreneurial processes
of publication

Discovery Concept development


Resourcing Actualisation Harvesting
13) Involves An entrepreneur The third step is The business starts This is the final stage
generating ideas describes their business to determine the operation and where an entrepreneur
and identifying idea in the form of a resources that one utilise its resources decides what they want
opportunities and detailed proposal needs; (whether wisely to create to do with their
also studying the (business plan). One to look for a loan, value to different business. Whether to
market. This idea decides if they need to investors or use stakeholders inter expand their markets to
could be patent their idea, one’s savings) alia: employees, other countries, do
completely new or copyright it or if they and non-financial customers, product developments
improving what is need a trademark and resources investors or sell. One has to have
already in the also choose a place (human). future plans regarding
market. where they will be their venture.
Opportunities are located.
identified by trend
observations,
problem solving
and looking for
gaps in the market.
If it adds value to
the customer, the
market will be
ready to pay for
that product or
service. Also, an

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
opportunity has to
be attractive,
timely and durable
as well. It is also in
this stage where
one has to discover
their skills and
hobbies. Moreover
an entrepreneur
does the market
research by issuing
questionnaires to
respondents,
surveys and study
demographics
about the potential
customers.

l (2014) An entrepreneur One begins to plan and Acquisition and S/he takes the Manage the firm, if it
identifies then start to network with handling of product to the does not make it then it
evaluates the different stakeholders. resources needed market. is closed down.
business to start operation.
opportunity.
2016) An entrepreneur An entrepreneur drafts a Seed financing- One has to acquire Some businesses
identifies and business plan, but for Looking for ways customers and succeed while others
evaluates a entirely new ideas it to fund the retain them in the fail but failure does not
business idea. A happens to not work business, for most efficient necessarily mean one
market research is most of the times as the example, from manner. did not put their effort.
also necessary. market may react angel investors. It could be that the
Moreover, one has different from how an At this point, business did not have
to choose an idea entrepreneur anticipated looking for funds real customers. One
which goes along hence the need for tests, is not easy as should look back to
with their talent retests and corrections. people who can see where they went
and passion. fund do not trust wrong and what
an entrepreneur worked so that one
with their funds. could understand the
It is best for one areas that need
to look for funds improvements. If it
from friends and succeeded, one should
family or resort to note both small and
small business big wins as well as
loans as their loses to eliminate them
requirements are completely. One
much more should focus on
lenient even making customers
though they at happy and not hide
times have success tips to help
shorter repayment others to become
periods and high successful.
interest on loans.
(center for The ideation An entrepreneur An entrepreneur The company is The company now
entrepreneurship process entails evaluates if the idea is plans on formed and generates revenues and
and innovation, identification of a worth the investment capitalizing the launched. It now works towards being
2017) problem or a need (time, financial and non- opportunity. becomes a legal sustainable. Plans are
which is followed financial resources like Strategy and entity. executed at this stage.
by possible human resources, assets operating plan are

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solution to a as Intellectual Property necessary in the
problem (a and relationships.) planning stage.
business idea)
, 2008) Innovation stage; Triggering event; which Implementation Growth stage; which
Entails idea includes growth, stage;which includes
generation, enthusiasm to commence includes adolescence,Profit
innovating, business, choice to Early stages of maximisation, reaping
opportunity continue, planning, operation, rewards, frequent
identification, recognizing critical integrating, development to take
gathering resources, assessing launching of the advantage of
information, risks, garnering business, tactics opportunities
venture formation, resources, development to survive,
idea screening to business plan
check viability, implementation,
identifying where running the
to create value, venture,
product organizing
development resources,
building on
success, running
the venture.

Source; author (developed for this research) 71-90

Appendix 3; study design 3. What is your nationality?


Method Form of Requires Focusses on
Research Control of Contemporary Motswana
Question Behaviour Events?
Events?
Experiment How, why? Yes Yes
Survey Who, what, No Yes Other
where, how (specify)………………………………………………………..
many, how ....................................
much?
Archival who, what, No Yes/no 4. When did you start your company?
Analysis where, how …………………………………………………………………
many, how …………………………………....
much
History How, why? No No SECTION B: OPPORTUNITY IDENTIFICATION
Case Study How, why? No Yes 5. How did you identify the business opportunity?
…………………………………………………………………
Source: (Maart, 2011)
…………………………………………………………………
…………………………………………………………………
…………………………………………………………………
Appendix 4; interview questions
……………………………………………
SECTION A: BIOGRAPHIC INFORMATION
6. What motivated you to pursue this business opportunity?
1. Gender; Male Female …………………………………………………………………
…………………………………………………………………
…………………………………………………………………
2. Age (years); 18-30 …………………………………………………………………
……………………………………………
31-50
51-70 7. How did you inform yourself about the market? And why

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…………………………………………………………………
………………………………………………………………… …………………………………………………………………
………………………………………………………………… …………………………………...
………………………………………………………………… …………………………………………………………………
…………………………………………… ……………………………………

8. What was their response to the business idea? 14. What distinguishes your firm from others you are in the
………………………………………………………………… same industry with (competition)?
………………………………………………………………… …………………………………………………………………
………………………………………………………………… …………………………………………………………………
………………………………………………………………… …………………………………………………………………
…………………………………………… …………………………………………………………………
……………………………………………
9. How long did it take to actualise the business idea? What
were the challenges?
………………………………………………………………… Appendix 5; consent form
………………………………………………………………… Research topic; a comparative study of entrepreneurial
………………………………………………………………… processes between immigrant and local entrepreneurs
…….... Researcher’s name; Precious Pearl Modise
Programme of Study; Bachelor of Business Administration
SECTION C: RESOURCE MOBILISATION (Business Entrepreneurship And Enterprise Development).
10. What steps did you follow to attain resources to take up Email Address: preciouspearlmodise@gmail.com
your business opportunity? Phone; 77139286
…………………………………………………………………
………………………………………………………………… Purpose of research;
………………………………………………………………… 1. To understand how local and immigrants entrepreneurs
……… identify opportunities
2. To understand how local and migrant entrepreneurs
11. What assistance did you get when you started your acquire resources needed
business? From whom? 3. To determine how they use the acquired resources
…………………………………………………………………
………………………………………………………………… What you will be asked to do
………………………………………………………………… Answer the questionnaire honestly
…………………………………………………………………
…………………………………………… Benefits of the research to you
12. How did you acquire the most critical resources for Results of the research will help your business to
starting the company? succeed by benchmarking on what other successful
………………………………………………………………… entrepreneurs are doing.
…………………………………………………………………
………………………………………………………………… Participation
………………………………………………………………… Participation is voluntary, participants can withdraw at
………………………………………………………………… any time. Withdrawal will not affect relationship with the
………………………………………………………………… researcher now and in future
…………………………………………………………………
…………………………………………………… Confidentiality
Data gathered shall be analysed without disclosing any
respondent’s name.
SECTION D: DEFINITION OF SUCCESS I, agree to participate
13. How do you define success? in this research. The signature below indicates my wish to
………………………………………………………………… participate.
………………………………………………………………… Signature; date;
…………………………………………………………………
……… OPPORTUNITY IDENTIFICATION
(ii) In your view, is your business successful? Please explain
………………………………….. Appendix 6; How do entrepreneurs identify opportunities?

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1. The first entrepreneur is a disk jockey, who identified a he was offering the same service at his home country
problem with what was currently in the market. As a DJ, before relocating to Botswana.
He could not play the music anywhere he was. He had to 8. Her friend identified a gap in the market then informed
be near the music instruments and manually do the her of the opportunity to come and capitalise on. Her
deejaying so he came up with a product that will make his friend realised there was shortage of power in the country
job much more convenient and enjoyable. He came with a but there is abundance of sunlight so when she heard
product that allowed him to play music from his phone. about the opportunity and the chances of it being
The device connects his phone to music instruments like lucrative, she relocated to Botswana to pursue the
speakers, by something similar to Bluetooth, which gives opportunity. She provides solar lighting solutions by
him an allowance to play the music from a distance, he manufacturing solar flood lights, solar streets light, solar
doesn’t necessarily have to be by the music instruments. car park light, solar fitting with logo and solar panels.
2. He identified a gap in the way existing marketing 9. Respondents 9 and 10 provide laptop both software and
companies offered their services so he got motivated to hardware solutions by repairing electronic gadgets and
come up with a solution to offer globally competitive new updating software for her clients. They were motivated by
marketing services, educating and connecting companies passion, skills they had and the fact that there was a few
with audience through innovative initiatives. To achieve entrepreneurs offering similar products.
innovation, he analyses trends and also relies on
observation to be updated with changes in the market. He Thus, the researcher managed to come up with the
aims to increase brand recognition and loyalty, use other following themes for opportunity identification;
social media platforms like Instagram to market other
companies’ products. Information; some of the respondents managed take
3. The third respondent observed that her children were advantage of opportunities because they got information about
eager and capable of working with modern technology the opportunity available from friends and families, then
appliances like cell phones at a very young age. Her actualised the ideas.
vision was to see other children around the globe aged 2
years to 16 being able to use modern technologies. To Passion; Participants managed to identify opportunities
achieve her goal, she introduced a program that gives because of the love and passion they had for Technology,
children complete understanding of STEM applications which motivated them to pursue the opportunity.
that stimulate thinking and learning skills to children
during the early years when they are full of curiosity. Experience; some respondents had been in the industry
Moreover, it allows children to use the application even in for many years, working for other people so they identified
areas without electricity. opportunities from where they worked and pursued them.
4. He was solving a problem of lack of skills and experience Some of them were not pleased with what was currently in the
in business innovation and marketing through graphic market (past experiences) so they managed to come up with
designing, signage design, corporate photography, ideas and actualised them.
animation videos, bulk SMSing and marketing strategies.
5. “there was a need for efficient data collection services in Observation; Some of the participants managed to come
Botswana, which relied upon technology!” that was the up with business ideas because they were observant. From
problem she identified so she decided to bring a change in their observations, they managed to come up with a business
the country by developing custom mobile software and ideas and actualised them.
providing hardware solutions to enable her clients to
enhance efficiency in their businesses. She does Appendix 7; how long do migrant and local entrepreneurs
consulting, software development for implementation, take to actualise the idea? And why
business transformation and operational solutions to their 1. It took a year for the first respondent to actualise the
clients. idea because he did not have any skills about how music
6. The respondent realised first worked as a software components work. He mostly relied on the internet and
engineer so had experience, love and passion for experimentations. If the product did not work like he wanted it
technology. In his previous job, he realised there was a to, he would go back to research.
gap in the market which he wanted to fill. he helps 2. The second participant spent seven years to implement
customers solve document management issues through his idea as he did not have enough resources to start his
providing document management software, products and business. Also, from his market research he found out that
software support, multi-function devices and consumables potential clients did not understand what I wanted to do.
7. The Indian national’s uncle identified a gap in the
laboratory equipment so he asked the respondent to come 3. It took 4 months for my second respondent to
to Botswana and bridge the gap. He provides government actualise as she was working with an American company. She
schools and private institutions with laboratory waited to get the right curriculum used in the USA. Lack of
equipment. My respondent had passion for his business, equipment also delayed the actualisation so she had to borrow

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money from a commercial bank. Moreover, getting the right APPENDIX 8; How did you acquire the most critical
instructors and training them delayed implementation. resources for starting the business?
Selecting schools for their MVA (minimum viable product)
and signing agreements was one of the reasons she gave. 1. The first respondent relied on the internet to equip him
with skills and knowledge of music components. He
4. He took a year and four months to actualise because would do piece jobs to supplement the little money he got
resources were in short and he had to do market research. from deejaying in different events to finance his product.
He also recycled old parts which were no longer working
5. He needed to acquire finances and assets to carry out to make his product. Because he was already in the
service provision, struggled finding well trained and qualified industry, he had already established network in the
staff, and finally having to meet actual decision makers in industry. He was a DJ and his target market was also DJ’s.
organisations he targeted delayed idea actualisation. He also Finally, media companies sponsored him to market his
had to do market research. It took 3 years. product even further.
2. Bootstrapping and personal savings financed his product.
6. “I acted on the opportunity immediately. The Botswana Innovation Hub also incubated him to accessing
challenge I faced was that key stakeholders like employees critical resources, he was offering a product completely
were not very committed. Moreover, day to day challenges different, moreover, in a new industry, but him having
would force me divert plans I had.” he explained. skills on marketing made resources much more accessible.
3. Her family helped her anyhow they could and gave her
7. “I immediately came to Botswana to actualise, support. He pointed out that a bank also assisted with a
unfortunately, the government, who was also my customer, loan. “I had to bond our assets with commercial bank for a
was not that supportive to me as a migrant. They mostly loan” she stated.
favoured local entrepreneurs!” those are the reasons he 4. He stated that his business partner assisted him and also,
indicated. relied on his allowance to finance his business. Moreover,
he bought second hand equipment and hired some
8. Government regulations hindered her from actualising resources he could not afford.
her idea so she took about 2 years to start the supply. Market 5. The fifth respondent stated that angel investors helped with
research also delayed her because she wanted to be sure of funding. BIH also incubated him to access critical
what the market really wanted. resources.
6. “I did not get assistance from anyone, I relied on the skills
9. She took a year to implement because she had to and experience from my previous job and saved money to
garner critical resources first and research more about the start this business” was the response he gave. He also said
viability of her venture. that as he was interacting with his potential customers, they
gave him advice.
10. She was faced with challenges of capital and 7. Since his uncle was already staying in the country, he
reluctance from her business partner. “I also did market helped him access resources. He also obtained a loan from
research” so it delayed her to actualise the idea. a bank to finance his business.
Themes 8. She said she had saved money from her previous job and
Regulations; some entrepreneurs took a long time to bootstrapped. Also, her friend helped her garner critical
implement because there were government regulations and resources she needed.
policies which were not supporting them as migrants. 9. She looked for a mentor when she got to Botswana to give
her guidance. Motivation and finances she was assisted by
Reluctance; other respondents were challenged with the friends and family.
problem of lack of commitment of business partners, 10. She was assisted by family and business partner who
employees and customers who not very convinced of having motivated her and gave financial support. She also
to switch to their products. contributed her skills to the business and money she had
saved to pursue the opportunity.
Research; Some respondents wanted to research about
the market first. Some were developing something completely Themes
new and unique so to them market research was very Bootstrapping; some respondents managed to garner
important. resources by hiring equipment and buying second hand
equipment they needed. Another respondent stated that he
Scarcity; Skills needed, finances and assets and recycled old parts to make his product.
equipment needed were in short for most respondents so it
delayed idea implementation. Incubation; Botswana Innovation Hub assisted some
respondents in accessing skills, establishing networks and
Resource Mobilisation

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International Journal of Economics, Commerce and Management Research Studies
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tangible assets they needed to start and run the venture. They believes he has made it because there is constant supply
also mentor entrepreneurs. despite the seasonality of his products. They are mostly
requested when schools are open as his major customers
Savings; Other respondents used savings from the are government schools.
previous job and others from their savings accounts to garner 8. She said success means, “providing the market with its
resources they needed. needs and generating enough profits.” She believes she is
successful as she is able to sustain the company the
Education; some respondents relied on the skills and company with its profits. She added that her success is
expertise they had to garner resources they needed. Due to the due to good customer service.
education gained in previous jobs, some entrepreneurs were 9. Success to her is the accomplishment of goals so she
able to gather resources. Some were able to access research believes she is not yet there as her business not
facilities because they could read and write. internationally recognised, which is her goal.
10. The last respondent said success is reaching both personal
Relationships; Business partners, family and friends and business goals so since her business has expanded she
helped some participants in forming networks, financed some considers herself successful.
entrepreneurs, and offered their second hand assets at very low
cost, and sharing business skills they had with entrepreneurs. Themes derived
Profits; Some respondents considered making enough profits
Banks; Banks offered other entrepreneurs a loan at an to sustain themselves and their businesses as being victorious.
interest to that they can be able to gather resources.
Experiences; Some respondents defined success as
Success experiencing failure and using it as a stepping stone to greater
Appendix 9; How did you acquire the most critical resources heights, and also celebrating the accomplishments and making
for starting the business? sure they continue being victorious.
1. The first respondent defined success as having achieved
the set goals so he felt he was victorious as he achieved the Goals; Some participants defined success as having a vision
goal of wanting to see his product work but has not and making sure one achieves their vision and goals.
achieved another goal of wanting to broaden his market
share. Growth; Success to other respondents meant broadening the
2. To him success means enabling other people to pursue market share, expanding to other areas and countries to be
what they want so he believed he was not yet successful. internationally recognized.
3. Success means, “To be able to still see your vision despite
failures on the way, to study failures and learn from them Delivering; making customers happy so that they continue
and never quit.” She believes she has failed as far the buying from the venture is what other respondents consider as
Botswana market is concerned. However she believes other being successful.
markets in Africa might give her better results.
4. To her, success is an accomplishment made due to Appendix 10; What distinguishes your firm from others you
previous bit of achievements and failures experienced. are in the same industry with?
Her answer to whether she is successful was yes. She 1. “I differentiated myself by giving my customers a choice to
stated that she is successful, based on the success criteria play the music from a distance, they don’t necessarily have
that they use, which is short term based. They focus on to be near the music equipment.” He said
individual projects and analyse them accordingly to 2. What gives him a competitive edge is that he is constantly
ensure they are a success, and continue opening a stream innovating and reinventing.
of projects and make more profit. She concluded that even 3. She said, “We believe a child must learn on their own pace
though they are never satisfied with their past and our competitors still follow the traditional way of
achievements, they keep on working to reach greater teaching with one teacher, directing up to classes of 40
heights. students and all expected to follow a unison.”
5. The fifth respondent defines success as a positive bank 4. He said that customer service and work ethic are on point
balance, good and committed employees and long term that is why they are the most preferred creative agency.
contracts with clients. He believes he is on the road to 5. He said what differentiates him from the competition is
success. that they provide innovative technologies, with proven
6. Success to him means being able to sustain oneself and records and results. Also they customise their services for
everyone around, making profit as a shareholder and clients thus meeting individual needs.
overcoming day to day challenges so he believes he is 6. When asked the question, he answered, “I do not focus on
successful. my competitors; I focus on myself because focusing on my
7. Having principles, being committed and delivering to business help me achieve the goals I had set for the
customers is what makes him successful. He therefore,

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
company. Focusing on competition makes one lose focus [3]. Allen, K. R. (2016). Launching new businesses; An
because you always want to be a step ahead of them.” entrepreneural approach, 7th ed. USA: Cengage
7. The seventh respondent said good customer service and Learning.
charging reasonable prices helps them beat the
[4]. Altekar, R. V. (2012). supply chain management;
competition. He supplies Batswana businesses as per the
country policies, who then supply other organisations, so concepts and cases,8th ed. New Delhi: PHI Learning
that makes him a bit cheaper. His customers are also his private limited.
competitors. [5]. Andressen, C. (2016). China's changing economy. New
8. What differentiates her business from the rest is her York: Routledge.
customer service. [6]. Aoyama, Y., Murphy, J. T., & Hanson, S. (2011). key
9. She said, “We serve the needs of our customers and give a concepts in economic geography. London: SAGE
great customer service.”
Publications ltd.
10. She attributed her success to good customer service and
going an extra mile as compared to her competition. [7]. Audretsch, D. (2006). entrepreneurship and economic
growth. New York: oxford university press, inc.
Themes [8]. Azais, C. (2010). labour and employment in a globilising
Convenience; some respondents said their products are used world. Belgium: 1 avenue maurice.
with relative ease and little effort as compared to their
[9]. Baum, R. A. (2007). the psychology of entrepreneurship.
competitors.
Innovation; Finding efficient and new ways of doing New York: lawrence Erlbaum Associates Inc.
things or making new products or services helps other [10]. Bentz, R. P. (n.d.). acquring and managing resources.
entrepreneurs to be a step ahead of their competition. Retrieved 10 4, 2016, from FAO corporate document
Service; most entrepreneurs said they had the best customer repository:
service, which attracts more customers to their businesses. http://www.fao.org/docrep/w5830e/w5830e0i.htm
Customisation; Modifying products and services to each
[11]. Bessant, J., & Tidd, J. (2015). innovation and
customer’s needs differentiates some respondents from their
competition. Needs of each individual customer are met. entrepreneurship,3rd ed. UK: John wiley and sons Ltd.
[12]. Bhave, M. P. (1994). A Process Model of
Appendix 11; summary of biographic information Entrepreneurial Venture Creation. journal of business
venturing, 223-242 .
interviewee gender Age nationality Year they [13]. Borgas, G. (1999a). immigration and welfare magnets.
range started journal of labour economics, 607-637.
operation
[14]. business dictionary. (2016, 09 25). Retrieved from
1 M 31-50 Motswana 2011
http://www.businessdictionary.com/definition/success.ht
2 M 18-30 Motswana 2014
3 F 51-70 Motswana 2012 ml
4 M 18-30 Motswana 2016 [15]. Bygrave, W. D., & Zacharakis, A. (2010). The portable
5 M 18-30 Motswana 2011 MBA in Entrepreneurship. Canada: John Wiley and sons
6 M 31-50 Central 2000 Inc.
Europe [16]. Canadian Council for Small Business and
7 M 31-50 India 2009 Entrepreneurship. (1994). entrepreneurship. journal of
8 F 18-30 Gambia 2013 small business and entrepreneurship, 44.
9 F 31-50 Ghana 2014 [17]. Cantner, U., Nesta, L., & Guffard, J. (2009).
10 F 18-30 Zambian 2012
schumpeterian perspectives on innovation, competition
and growth. London: springer science and business
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Appendix 2; A summary of the stages of the entrepreneurial processes by different authors


Author and year Attributes covered in definition of entrepreneurial processes

of publication

Discovery Concept development Resourcing Actualisation Harvesting

(Ali, 2013) Involves An entrepreneur The third step is The business This is the final stage
starts operation
generating ideas describes their business to determine the and utilise its where an entrepreneur
resources wisely
and identifying idea in the form of a resources that to create value to decides what they
different
opportunities and detailed proposal one needs; stakeholders inter want to do with their
alia: employees,
also studying the (business plan). One (whether to look customers, business. Whether to
investors
market. This idea decides if they need to for a loan, expand their markets

could be patent their idea, investors or use to other countries, do

completely new or copyright it or if they one’s savings) product developments

improving what is need a trademark and and non-financial or sell. One has to

already in the also choose a place resources have future plans

market. where they will be (human). regarding their

Opportunities are located. venture.

identified by trend

observations,

problem solving

and looking for

gaps in the market.

If it adds value to

the customer, the

market will be

ready to pay for

that product or

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
service. Also, an

opportunity has to

be attractive,

timely and durable

as well. It is also in

this stage where

one has to discover

their skills and

hobbies. Moreover

an entrepreneur

does the market

research by issuing

questionnaires to

respondents,

surveys and study

demographics

about the potential

customers.

Shih et.al (2014) An entrepreneur One begins to plan and Acquisition and S/he takes the Manage the firm, if it
identifies then start to network with handling of product to the does not make it then
evaluates the different stakeholders. resources needed market. it is closed down.
business to start operation.
opportunity.
(Edom, 2016) An entrepreneur An entrepreneur drafts a Seed financing- One has to Some businesses
identifies and business plan, but for Looking for ways acquire customers succeed while others
evaluates a entirely new ideas it to fund the and retain them in fail but failure does
business idea. A happens to not work business, for the most efficient not necessarily mean
market research is most of the times as the example, from manner. one did not put their
also necessary. market may react angel investors. effort. It could be that
Moreover, one has different from how an At this point, the business did not
to choose an idea entrepreneur anticipated looking for funds have real customers.
which goes along hence the need for tests, is not easy as One should look back
with their talent retests and corrections. people who can to see where they went
and passion. fund do not trust wrong and what
an entrepreneur worked so that one
with their funds. could understand the
It is best for one areas that need
to look for funds improvements. If it

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
from friends and succeeded, one should
family or resort note both small and
to small business big wins as well as
loans as their loses to eliminate them
requirements are completely. One
much more should focus on
lenient even making customers
though they at happy and not hide
times have success tips to help
shorter others to become
repayment successful.
periods and high
interest on loans.
(center for The ideation An entrepreneur An entrepreneur The company is The company now
entrepreneurship process entails evaluates if the idea is plans on formed and generates revenues and
and innovation, identification of a worth the investment capitalizing the launched. It now works towards being
2017) problem or a need (time, financial and non- opportunity. becomes a legal sustainable. Plans are
which is followed financial resources like Strategy and entity. executed at this stage.
by possible human resources, assets operating plan
solution to a as Intellectual Property are necessary in
problem (a and relationships.) the planning
business idea) stage.
(Kunene, 2008) Innovation stage; Triggering event; which Implementation Growth stage; which
Entails idea includes growth, stage;which includes
generation, enthusiasm to includes adolescence,Profit
innovating, commence business, Early stages of maximisation, reaping
opportunity choice to continue, operation, rewards, frequent
identification, planning, recognizing integrating, development to take
gathering critical resources, launching of the advantage of
information, assessing risks, business, tactics opportunities
venture formation, garnering resources, to survive,
idea screening to development business plan
check viability, implementation,
identifying where running the
to create value, venture,
product organizing
development resources,
building on
success, running
the venture.

Source; author (developed for this research)

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