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International Journal of Economics, Commerce and Management Research Studies

Volume 1, Issue 1, August - 2018

A Comparative Study of Entrepreneural Processes


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

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

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
so locals could do like their counterparts to improve their  How do local and immigrants entrepreneurs identify
ventures and not waste Government resources. opportunities?
 Where do local and migrant entrepreneurs acquire
III. PROBLEM STATEMENT resources needed?
 How do they use the acquired resources?
With high unemployment rates especially amongst the
youth, the Government of Botswana is investing a lot on local C. HYPOTHESIS
entrepreneurs with the expectation that their firms will survive  Locals wait for other people to present an opportunity to
(Johnson, 2011). In Botswana, the government give loans to them while immigrants identify opportunities themselves
locals up to two million pula at the lowest interests of about then act immediately (Jones, 2014).
7% per year (Embassy of Botswana, 2010). In addition, Jones  Local entrepreneurs mostly rely on their governments to
(2014) argued that grants, training and favorable policies are provide required resources in starting and running
also offered in favor for Batswana hoping they will be businesses, on the other hand, immigrants are independent
successful. However that is not the case as many Batswana of themselves (Patel, 2010).
businesses are failing within a period of five years. Self-  Locals misuse resources whereas immigrants manage
employment levels of immigrants exceeds the national average resources well and use them efficiently (Patel, 2010).
in most countries as new start-ups are mostly owned by
immigrants (Mthembu-Mahanyele, 2002). D. SIGNIFICANCE OF THE STUDY
This study is very important because it will help local
Immigrants are successful because they take advantage entrepreneurs on how to identify innovative ideas and run
of the opportunity very fast with the little resources they have successful ventures by benchmarking on what immigrants are
(Jones, 2014; Patel, 2010). Moreover, Patel (2010) argued that doing. It would also help the government on formulating
immigrants learn the industry they are in and think big but effective policies which will lead to entrepreneurial success of
start small. He further stated the advantages of starting small locals, who are then taxed to improve infrastructure of the
by arguing it allows immigrants to learn different skills at the country.
same time as they usually start with a few employees and
focus more on making customers happy. E. CONCEPTUAL CLARIFICATION
 Migrant; A person who lives temporarily or permanently in
According to Patel (2010), unlike immigrants, locals a country where he or she was not born, and has acquired
receive free education in tertiary institutions, free training and some significant social ties to the country (UNESCO, 2017)
are being mentored for free, receive loans which are below  Immigrant; Kim and Diaz (2013) defined an immigrant as a
market rates and are also favored in tenders but still their firms foreign-born person who enters a country with the intention
do not grow up to five years. He further stated that having to settle permanently.
everything at their disposal make them to want to start big  Entrepreneur; A person who sorts out and accept the danger
rather than starting small, they do not see the need to of a business or endeavor (Pinderhughes, 2004).
bootstrap, network nor research. In addition, he said obtaining  Success; includes dimensions of both personal and business
favors from the government makes them not to feel the sense success. Business success meaning satisfaction with the
of urgency and drive to take advantage of opportunities as they business performance and personal success include
arise and become innovative. He concluded by stating that dimensions as self-fulfillment, goal achieving and balance
locals only want to spend not make money, hence, their of work and family (Faculty of Administration; university of
businesses are not sustainable. Regina, 2016).
During the research, the researcher noted that authors do  Innovation; is when new ideas are being exploited (Neely &
not compare entrepreneurial processes followed by local and Hii, 1998)
immigrant entrepreneurs, which gives immigrants an upper  Entrepreneurship; Ireland, Hitt & Sirmon (2003) defined it
hand in business. Thus, this research aims to investigate on as a context dependent social process through which
how entrepreneurial processes differ amongst local and individuals and teams create wealth by bringing together
migrant entrepreneurs, leading to the following research unique packages of resources to exploit marketplace
objectives and questions. opportunities.

A. RESEARCH OBJECTIVES F. LITERATURE REVIEW


 To understand how local and immigrants entrepreneurs The first section critically analyses the entrepreneurial
identify opportunities processes. It then goes on to explain the factors that make
 To understand how local and migrant entrepreneurs acquire entrepreneurs successful and finally, it narrows down to
resources needed arguing about what makes migrant entrepreneurs better
 To determine how they use the acquired resources entrepreneurs.

B. RESEARCH QUESTION  Entrepreneurial processes


 MAIN RESEARCH QUESTION There is an agreement amongst authors on the definition
Why are immigrants more successful in business than of entrepreneurial processes. They all define it as a series of
their local counterparts from the process perspective. stages, events and activities that a business venture goes
 SPECIFIC RESEARCH QUESTIONS through due to an individual taking initiative. Entrepreneurial
process involve all capacities, exercises and activities which

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
are related with the acknowledgment of entrepreneurial open Furthermore, he suggested that social networking is key
door, and also composing a strategy for success, setting up an to successful businesses. He argued that where there is trust,
association and establishing the venture itself, considering the people work with one another therefore their firms tend to
vital assets, guaranteeing the reasonable market foundation of perform better than those who do not network but when social
the undertaking and the accomplishment of development networks take priority over economic reasons, it may lead to a
(Shane & Venkataraman, 2000). According to Getz et. al firm’s failure. To elaborate his point, he gave an example of
(2004) it speaks to the level one channel and is a cooperation hiring relatives who are not qualified as a contributing factor
of a complex, multi-dimensional and dynamic arrangement of to failure. Maslovskis (2013) also emphasized the need for
elements and conditions which emerge from attributes and networks by arguing that interaction with other people is key
states of mind of individual business people who are inspired in business as one gets to communicate their thoughts and
to partake in enterprise as a result of hereditary cosmetics and opinion to others who then help in finding customers,
social advancement inside their host group's way of life. suppliers and other critical elements for the survival of a
Moreover, Davidson (2008) defined it as the cognitive and business.
behavioral steps from coming up with a business idea, or first
actions towards the recognition of an innovative business Moreover, a strategy is another factor that is critical for
activity until the process is either ended or has led to an up and the survival of every business in a competitive environment as
running venture with consistent sales. Welter et.al (2012) it helps the business to assess both its internal and external
defined the processes as how business people build up their environment (Dalziel, 2008) . A Strategy is a plan of action
business and get to basic assets in times of crisis and which through which an organization relate itself with the
roles learning and advancement play in consistent venture environment to achieve the objective (Senapati, 2015).
improvement. According to (Dalziel, 2008) a strategy comprises of both
Entrepreneurial processes are grouped into two categories, resources and capabilities. He explained capabilities as what
namely: Internally stimulated, where an entrepreneur has the the firm can do best which differentiate it from its competitors,
desire to start a new venture therefore actively looks for and it includes good management and marketing skills
business opportunities. Ideas are evaluated before one decides whereas resources include capital equipment, financial and the
on what to venture into. Another category is; externally human resources. He argued that human resources help a firm
stimulated where an entrepreneur first encounters a problem to achieve its goals and offer a competitive advantage only if
with a current product then improves it (Bhave, 1994; they have the expertise, knowledge and skill to do the required
Davidson, 2008). He summarized the two categories a diagram work. Finally, financial resources help a firm to be able to buy
at appendix 1. the equipment needed, pay their day to day expenses as well as
Moreover the entrepreneurial process differ amongst business attract competitive human resource (Dalziel, 2008). Even
ideas, for example, innovative ideas would not follow the though these success factors are applicable to both local and
same processes as imitative ideas; Schumpeterian ideas are migrant entrepreneurs, migrants have an upper hand in
innovative and rare to find in nature whereas Kirznerian business hence the need to narrow it down to examine what
opportunities are incremental and common (Jong, 2011). makes them successful than their local counterparts.
There are five entrepreneurial stages in the  Why migrants become better entrepreneurs relative to locals
entrepreneurial processes being discovery, concept Patel (2010) argues that immigrants are more successful
development, resourcing, actualization and harvesting (Ali, because they come to make money; profits are the primary
2013; center for entrepreneurship and innovation, 2017; Shih, reason and happiness comes last which makes which results in
2014; Edom, 2016). However, there is confusion as to what immigrants finding ways to work for more hours. According
should be included in each stage, For example; Centre for to him, locals are taught to do what makes them happy
Entrepreneurship and Innovation (2017) included planning in therefore, work for few hours. He further argued investors love
the resourcing stage of which other authors included in the immigrants and also, immigrants are united and help one
concept development stage. Again, Kunene (2008) included another succeed. Furthermore, he argued immigrants believe
activities like, marshalling of resources, which are on the third saving money is easier compared to earning it so they are
stage according to other authors, on the second stage. (See always negotiating discounts and bootstrap a lot. Fairlie (2012)
table at appendix 2 showing the stages of the entrepreneurial agreed with Patel (2010) argument that immigrants rely on
processes as described by different authors). Finally, according personal savings, family and friends as sources of funds
to Kunene (2008), the five stages overlap, connect and depend whereas locals rely on banks and other financial institutions;
on one another. they have wider options but still immigrants do well in
business and own a lot of businesses compared to locals. Lack
 Factors that make entrepreneurs successful of other job options and the need for social networking are
In the view of Dalziel (2008) entrepreneurial success is a other factors which gives immigrants an upper hand in
result of personality traits and social networks as well as business (OECD, 2010). Moreover, Patel (2010) argued that
strategy (resources and capabilities). According to him immigrants never find it too late to go back to school
personality traits, being; persistence, dedication, tolerance for especially when firms are not doing so well, they would rather
ambiguity and risk and the need for achievement determine if do online and night time classes. On top of that, they never
one will be successful or not. These personality traits are take “no” for an answer, they believe they can turn a “no” into
mostly associated with culture so cultural differences affect the a “yes.” To them “no” means “not right now” which could
performance of a firm (Dalziel, 2008). later turn convert a “yes” (Patel, 2010). He argued that

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
immigrants rarely complain about their lives, they believe it J. SOURCES OF INFORMATION
will better with time because usually those conditions are way The researcher interviewed 5 local and 5 migrant
better than where they were before in their countries of origin. entrepreneurs based in Gaborone because the place was the
He concluded that immigrants believe their current situation most accessible. Also there were time and financial
does not define their destiny. constraints, hence the choice of location.

The researcher had to collect her own data from K. DATA ANALYSIS
entrepreneurs rather than relying on secondary data only. Data was analyzed qualitatively because mostly words
were used to explain the differences in entrepreneurial
IV. METHODOLOGY processes between migrant and local entrepreneurs (Saunders,
G. STUDY DESIGN Lewis, & Thornhill, 2012). The researcher used content
There are various methods that one can use during analysis to analyze the cases because she wanted to enrich her
research. The choice of method depends on the type of understanding on entrepreneurial processes and how they
research questions and objectives (Maart, 2011) . They are differ amongst local and migrant entrepreneurs which gives
summarized at appendix 3.Multiple case study was suitable for migrants an upper hand. Case study interviews provide a
this research because it tries to explain present circumstances. richer content for analysis because of its depth of interaction
Moreover, case study answers the how and why questions so it between interviewees and interviewers (Trace, 2001). An
is used when the researcher wants to study reality in depth author further stated that in case study analysis, a researcher
(Maart, 2011). identifies themes relating to her research. For this paper,
themes were derived from opportunity identification and
H. SAMPLING TECHNIQUE resource mobilization.
Ten successful participants were interviewed; 5 local and
5 immigrant entrepreneurs, all from the Information L. ETHICAL CONSIDERATIONS
Technology industry. Snowballing was suitable because it Saunders et.al (2012) define ethics as “standards of
made it easy to identify successful entrepreneurs in the IT behavior that guide conduct in relation to rights of those who
Industry. In snowballing technique, a researcher makes contact become the subject of your work, or are affected by it.”
with one to two cases in the population who then identify other Participation was voluntary and they had a right to withdraw at
cases until the sample is large (Saunders et.al (2012) ). any time if they wished. All information gathered was treated
with confidentiality and used strictly for research purposes.
I. DATA COLLECTION TECHNIQUE Again, the researcher had to respect their privacy (anonymity).
The choice of data collection instrument depends on the See appendix 5: consent form
type of questions a researcher asks. Data collection techniques
include questionnaire, interviews, observation, experiment, M. LIMITATIONS OF THE STUDY
focus group discussion (Saunders, Lewis, & Thornhill, 2012).
For this research, data was collected through interviews, as it  Lack of data; some entrepreneurs who agreed to take
was the most suitable; it allows the researcher to collect more part said they had tight schedules and did not really
information from the questions she asks. The questions are have time for interviews. As a result, they suggested
structured to help the researcher to ask multiple participants that the interview script should be sent to them via
the same questions thus achieving data saturation (Fusch & email so the researcher was not able to ask follow up
Ness, 2015).A set of questions were prepared, guided by the questions.
research questions (See questions at appendix 4). According to  Sample size; the study collected data from a sample
Saunders et.al (2012) advantages of an interview is that it therefore restricts generalization of the results to the
allows the researcher to make follow up questions. Moreover, whole population.
it reduces the risks of getting distorted information as it is a  The research was limited to the Information
one on one interaction (Kajornboon, 2005). Technology (IT) industry.

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V. ANALYSIS OF DATA AND DISCUSSIONS AND FINDINGS
N. DATA ANALYSIS

OPPORTUNITY IDENTIFICATION

1. How do entrepreneurs identify opportunities?


8 themes were derived under opportunity identification

Entrepre Content and coding Themes


neur
1 Identified a problem that he had to be near his music equipment to play Experience
music so he developed a device that allowed him to play music from his
phone.
2 Observed a gap in the marketing companies so he came up with innovative Observation
ways of marketing products and services.
3 Realized that children are so creative so she developed an application to Observation
enhance creativity.
4 Realized a problem of lack of skills in business innovation and marketing so Observation, experience
he solved it by helping companies market themselves.
5 Realized there was a need for efficient data collection, developed software Passion, observation
and hardware solutions to enhance efficiency
6 In his previous job, he realized there was a gap in the market which he Experience, passion, observation
wanted to fill. he helps customers solve document management issues
7 He followed his heart by providing institutions with laboratory equipment. Passion, information

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

Sources of opportunities for locals are; passion, experience and observation whereas for migrants are all of them. See appendix 6

2. How long do migrant and local entrepreneurs take to actualise the idea? And why
Entrepre Content and coding Themes
neur
1 Took a year due to lack of skills Scarcity
2 7 years due to lack of resources Scarcity
3 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
5 He needed to find qualified staff, acquire finances and assets. Again, Scarcity, research, reluctance
reluctance of decision makers in organizations delayed. He also got delayed
by market research so he actualized after 3 years

6 Acted immediately but employees were not committed Reluctance


7 Acted immediately but the government had policies in place which were not Regulations
supportive
8 2 years due to government regulations and market research Regulations, research

9 Garnered resources and did market research in a year Research


10 3 years; Was faced with lack of capital and reluctance of her business Scarcity, research, reluctance
partner

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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

RESOURCE MOBILISATION

1. 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, Bootstrapping, Savings, Education,
used savings. He also recycled old parts. Because he was already relationships
in the industry, he had already established networks. Finally,
media companies sponsored him to market his product.
2 Bootstrapping and personal savings financed his product. Bootstrapping, savings, incubation,
Botswana Innovation Hub(BIH) also incubated him to access education
critical resources. His skills on marketing made resources much
more accessible.
3 Her family helped her anyhow they could and gave her support. Relationships, banks
Bank also assisted with a loan.
4 Business partner assisted him and also, relied on his allowance to Relationships, savings, bootstrapping
finance his business. Moreover, he bought second hand
equipment and hired some resources he could not afford.
5 Angel investors helped with funding. BIH also incubated him to Incubation, loan
access critical resources.
6 Relied on the skills and experience from his previous job and Relationships, education, savings
saved money to start this business” He also said that as he was
interacting with his potential customers, they gave him advice.
7 His uncle helped him access resources. He also obtained a loan Relationships, bank
from a bank.
8 Saved money from her previous job and bootstrapped. Also, her Relationships, savings, bootstrapped
friend helped her garner critical resources she needed.
9 Mentor assisted her. Also, she was financed by friends and Relationships
family
10 Was assisted by family and business partner who motivated her Savings, relationships, education
and gave financial support. She also contributed her skills to the
business and money she had saved to pursue 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
1. How do you define success, and would you say you are successful?
Nine themes emerged
entrepreneur Content and coding Themes
1 He described success as having achieved the set goals so he felt he was victorious as he Goals
achieved the goal of wanting to see his product work, however, has not achieved another
goal of wanting to broaden his market share so 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 Experiences,
from them and never quit. She believes she has failed as far the Botswana market is growth
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. Experiences,
She stated that she is successful, based on the success criteria they use. goals, profits,
delivering,
5 Positive bank balance, good and committed employees and long term contracts with Profits,
clients. He believes he is on the road to success. delivering
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

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7 Having principles, being committed and delivering to customers is what makes him Delivering,
successful. He believes he is successful goals,
8 Providing the market with its needs and generating enough profits. She believes she is Delivering,
successful. She added that her success is due to good customer service. profits,
9 Accomplishment of goals so she believes she is not yet there as her business not Goals, growth
internationally recognized.
10 Reaching both personal and business goals so since her business has expanded she Profits, goals,
considers herself successful. growth

Both migrant and local entrepreneurs defined success in a similar manner. See appendix 9

2.What distinguishes your firm from others you are in the same industry with?

entrepreneur Content and coding Themes


1 He differentiated himself by giving customers a choice to play the music from a distance, Convenience
they 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 Convenience
the 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 Innovation,
their services for clients thus meeting individual needs. customization
6 I do not focus on my competitors; I focus on myself because focusing on my business help Convenience
me 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 from the competition through innovation, convenience, good
customer service and customisation while migrants relied on innovation, customisation and a good customer service to
differentiate themselves from their competitors. See appendix 10

O. DISCUSSIONS products or services than the competition. Motivation also


play a role in helping entrepreneurs actualise their idea much
OPPORTUNITY IDENTIFICATION faster, moreover, one has to be talented and passionate about
the idea (Edom, 2016). From the interviews, other locals were
Local entrepreneurs; Findings showed that all entrepreneurs passionate whereas others were fuelled by the fact that there
identified the opportunity themselves. According to Edom was a problem they wanted to solve and/or a gap which they
(2016) the opportunity can be identified and evaluated by an wanted to fill.
entrepreneur. As per literature (Ali, 2013) some identify such
opportunities to solve problems, some want to fill gaps they Migrant entrepreneurs; on one hand, migrants that stayed in
identified in the market while others observe trends. Due to Botswana identified the opportunity themselves but those who
resource shortage and market being sceptical, all local were away had the opportunity identified by friends and/or
entrepreneurs took a longer time to take up the opportunity family who then informed them of the opportunity to come
which was attractive to them. According to Allen (2016), at and pursue. All of the five migrant entrepreneurs were
start-up the aim is to build a combination of resources that will bridging a gap in the market. This is contrary to (Jones, 2014)
help the new venture to start and function until sales of the when he argued that locals wait for other people to present an
product or service yield a positive cash flow, but those opportunity to them while immigrants identify opportunities
resources usually are not sufficient (Leach & Melicher, 2015). themselves.

Some were delayed by wanting to do market research Most migrant participants were motivated by passion,
first, which according to (Edom, 2016) is critical for a start-up some were motivated by both passion and the venture’s
as it gives an insight of the market to help make informed lucrativeness. Having passion for what they were doing, they
decisions. One participant stated said ‘I conducted a market were motivated to actualise the idea immediately. One other
research and checked whether there was anyone doing what I entrepreneur said,’ I wanted to solve a problem in the market
was proposing’ which means market research can be done to and also make something for myself and leave a legacy.’ So it
know about the competition and how they can provide better made him take advantage of the opportunity immediately. All

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
of them acted on the opportunity within a period of three years Wadid, 2016). They are being mentored by experienced
unlike locals who took up to seven years to capitalise on the entrepreneurs during the incubation process (Council of the
opportunity. It is important to pursue the opportunity while the European Union, 2014). Incubation helps all start-ups obtain
window of opportunity is still open (Kaiser, 2008). all the resources they need to start and run sustainable
ventures.
Just like their local counterparts, they were faced with
challenges of shortage of resources but managed to garner The other one relied on the internet to research because
them much faster than locals due to networks which they he had no expertise on what he wanted to venture into. Other
formed much faster and bootstrapped. Other challenges they participants relied on the skills they had. On one hand,
were faced with were that some business partners and other majority of migrants stated that they ventured into something
key stakeholders were not committed as they were. Social they had skills, expertise and experience on. The other one was
loafing is due to lack of commitment and failure to perform helped by her friends, the last one was assisted by family,
their own share of work (Williams, 2013). Some of the friends and her mentor to be equipped with skills needed. She
migrant respondents stated that they were also delayed by did not have the required skills.
wanting to study the market first. Others complained about
government regulations which delayed their idea actualisation. Social capital
They complained that government policies favors locals over Locals; BIH helped some participants to establish networks
them which makes it hard to do business in Botswana. during the incubation process. One said that the industry was
According to (Government of Dubai , 2011) Governments are new so he did not know anyone but the other one said it helped
doing their best to promote trade at the same time protecting her form alliances with an American Company and the
local businesses. One entrepreneur gave an example of him not Ministry of Education (who is their potential customer).
being allowed to supply his products directly to government Another interviewee said that he has long been in the industry
schools; only local entrepreneurs can do so he is forced to so he already established links.
target local entrepreneurs as his customers.
Migrants; the first interviewee established networks way
RESOURCE MOBILISATION before he started a business as he long worked in the industry,
Others were helped by friends and friends. Another one said
Financial resources he knew his uncle only when he first moved to Botswana. The
The other hypothesis was that local entrepreneurs mostly rely last one was helped by her mentor to establish relationships.
on their governments to provide required resources in starting According (OECD, 2010) the need for social networking is
and running businesses while immigrants are independent of one of the factors which give immigrants an upper hand in
themselves (Patel, 2010). This is in conflict with the findings business. Social capital has positive impact on new venture
which showed that both locals and migrants relied on their performance (Morone, 2013; Andressen, 2016). Zhao (2015)
savings and bootstrapped; their incubators, families and Argued that it is important for entrepreneurs to form new
friends, except for a few entrepreneurs who got funded by relationships depending on their own product/ service and
banks and one who was financed by an angel investor. stage of the life cycle, as well as adjust and maintain the
The last hypothesis also varies with findings. Hypothesis current network. Moreover, he argued that networks help in
stated that locals misuse resources whereas immigrants accessing the market and gaining technical knowledge.
manage resources well and use them efficiently (Patel, 2010) Cooper& Burke (2011) Concluded that human capital
but findings show that they both use the funds efficiently encourage opportunity recognition whereas social capital
because they usually want to enjoy Return on Investment promote opportunity exploitation resulting in sales and
(RoI) within a reasonable time. revenues.

Human capital SUCCESS


Locals; other participants were incubated by Botswana
Innovation Hub, who equipped them with the skills they Majority of local entrepreneurs believed they were
needed for start-up, but one already had skills on the area successful, to some extent, because they had not achieved
before incubation. According to Cumming (2010) Business some of the goals they had set to. The other participant did not
Incubation is one way in which entrepreneurs are imparted consider herself as successful because the market did not buy
knowledge on coming up with innovative ideas and her product as they could not afford it. It is possible that
sustainable businesses. They achieve that goal by delivering customers do not buy the product or a service as an
services as technical and administrative, and entrepreneurial entrepreneur anticipated (Edom, 2016).On one hand, all
knowledge (Thom, 2011). Moreover, they aim on nurturing migrant entrepreneurs admitted they were successful except
new venture development through short term usage of for one who said she would admit she was successful if her
buildings, access to investor funds through networking as products were internationally recognised.
other financial institutions are usually reluctant to finance
start-ups (Cumming, 2010). Business incubation process is According to (Faculty of Administration; university of
concerned with developing a venture from the current state to Regina, 2016) success includes dimensions of both personal
a desired state where it can be competitive in a changing and business success. They further argued that business
business environment through the provision of critical success means satisfaction with the business performance and
resources and business support services (Phan, Mian, & personal success include dimensions as self-fulfillment, goal

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
achieving and balance of work and family. Some respondents pursued this opportunity since 2012. Her age ranges between
defined it as generating more profits; some explained that it 18 and 30.
means achieving goals. Some participants said they define
success as growth. Each entrepreneur had his /her definition of When summarising findings, the researcher found out
success. In the view of Dalziel (2008) entrepreneurial success that Out of the ten entrepreneurs interviewed, six of them are
is a result of personality traits and social networks as well as male, four are females all ranging from ages 18-70, with
strategy (resources and capabilities). majority ranging between 18-30. Those who are not locals are
from the following countries; Central Europe, India, Zambia,
Competitive advantage Gambia and Ghana. All respondents ran their businesses for 1
to 17 years. See summary of biographic information at
Some entrepreneurs had more than one reason which appendices (appendix 11).
makes them successful compared to their competitors.
Majority of respondents associated their success to good OPPORTUNITY IDENTIFICATION
customer service and an excellent service which leads to an Findings showed that all locals identified the opportunity
increase in sales, customer satisfaction, repeat sales, improved themselves but took time to take up the opportunity due to lack
image and a competitive edge (Hayward, 2002). Other of critical resources and the market being sceptical. On one
entrepreneurs said their success is due to constant innovation hand, some migrant participants had the opportunity identified
and reinvention. Innovation destructs and creates new by relatives and friends who then invited them to come to the
industries and products, so it makes one to always be ahead of country to pursue those opportunities. Those who were already
the competition (Cantner, Nesta, & Guffard, 2009). staying in Botswana identified the opportunities themselves.
Competitive edge of other entrepreneurs as per the findings is All migrants acted on the opportunity within a period of three
convenience. One other entrepreneur accounted his success to years unlike locals who took up to seven years to capitalise on
focusing on himself and goals he has set for the company, not the opportunity.
his competition, because he believes focusing on competitors
would make him lose focus as they always want to be a step
RESOURCE ACQUISITION
ahead. The other one attributed his success to customising
goods to his clients which means individual needs are met. Financial resources
According to (Altekar, 2012) other benefits of customisation is Locals; other respondents said that they used their own savings
that it reduces costs such as inventory costs, spoilage and no and bootstrapped to start the venture whereas the other one
capital gets tied in stock. Finally, success means having a said he was funded by an angel investor. The other one
positive bank balance, according to one entrepreneur. borrowed from a commercial bank.
Migrants; some respondents stated that they bootstrapped and
From the findings, migrant entrepreneurs are not used their savings to start and run their businesses. The other
motivated by money to be successful, passion drives them so it one was funded by bank and some by family and friends.
is at odds with Patel (2010) when he argued that they come to Human capital
make money and happiness is secondary. Locals; other local participants were incubated by Botswana
Innovation Hub, who equipped them with the skills they
P. FINDINGS needed for start-up, and he also had skills on the area. The
other one relied on the internet to research because he had no
Biographic information
expertise on what he wanted to venture into. The other two
The first entrepreneur is male from Botswana, aged 31- relied on the skills they had.
50, and started his business in 2011. The second respondent is Migrants; other immigrants stated that they ventured into
also a male from Botswana who has been in the industry for 3 something they had skills, expertise and experience on. The
years, with his age ranging between18-30. The third other one was helped by her friends, the last respondent was
entrepreneur is a female from Botswana, with her age ranging assisted by family, friends and her mentor. She did not have
between 51 and 70 and has been in the industry since 2012. the required skills.
The fourth entrepreneur’s age ranges between 18 and 30, she
is a female from Botswana. Her business has been in existence Social capital
for a year now. The last local respondent is male and his age Locals; BIH helped other participants to establish networks
is between 18 and 30, and has been running his venture for 5 during the incubation process; one said that the industry was
years. new so he did not know anyone, the other respondent managed
to form alliances with an American Company and the Ministry
The first migrant entrepreneur is from Central Europe, of Education (who is their potential customer). Another
and is male with age ranging between 31 and 50. He has been interviewee said that he has long been in the industry so he
running his business since 2000. The seventh entrepreneur is a already established links. Business partner helped in
male from India, his age ranges between 31 and 50. He has establishing links for another respondent.
eight years in Botswana. He eighth entrepreneur is a Gambian Migrants; another respondent established networks way before
national, female with ages ranging between 18 and 30. It’s he started a business as he worked in the industry, others were
been three years since she pursued this opportunity. The nineth helped by friends and family. One respondent said he only
respondent is a female from Ghana, with age ranging between knew his uncle when he first moved to Botswana and did not
31 and 50, and has been running her business for 17 years know a lot of people in the industry. The last respondent was
now. The last respondent is also female from Zambia, who helped by her mentor to establish relationships.

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 To understand how local and migrant entrepreneurs acquire
SUCCESS resources needed
Other local participants believed they were successful, to  To determine how they use the acquired resources
some extent, because they had not achieved some of the goals
Literature attributed the success of migrants to
they wanted to; they said they had set milestones but they had
networking, bootstrapping, savings and negotiations.
not reached some yet. The other participant did not consider
Moreover some authors associated the success of migrants to
herself as successful because the market did not buy her
determination, education and drive to make more money.
product as they could not afford it. On one hand, migrants said
Before the researcher carried out his own research to find out
they were successful except one respondent who said she
what makes migrants outpeform locals , she did methodology
would admit she is successful if her products are
to guide her on how to carry out research. Her methodology
internationally recognised.
allowed her to interview 10 entrepreneurs from the
Information Technology industry in Gaborone; both locals and
Most entrepreneurs had more than one competitive
migrants represented. they were selected through snowballing
advantage. Majority of respondents associated their success to
technique. Data was analysed qualitatively using the content
good customer service whereas other respondents said their
analysis. From the data analysis, it was found out that
success is due to them constantly innovating and reinventing.
authour’s hypothesis were inconsistent with the findings. As
Other participants said that convenience is what differentiated
per the findings, locals identify the opportunity themselves but
them from the competition. The last one accounted his success
take too long to actualise due to lack of resources but for
to focusing on himself and goals he has set for the company,
migrants; some had the opportunity identified by their friends
not his competition, because he believes focusing on
or family so they quickly moved to Botswana immediately to
competitors would make him lose focus as they always want
persue the opportunity with the little resources they have. Both
to be a step ahead.
groups stated that they manage resources effectively. Having
noted some of the factors that make migrants outpeform
From the findings and analysis, sources of opportunities
locals, the researcher made the following recommendations;
for locals are; passion, experience and observation whereas for
migrants are all of them. What delays locals to actualise
R. RECOMMENDATIONS
opportunities were reluctance, research and scarcity of
resources while for migrants, all the themes were applicable.  Since all interviewees were pulled into entrepreneurship
Locals acquire resources by bootstrapping, incubation, (they spotted opportunities in the market and pursued them)
savings, education, relationships and banks. As for migrants, and became successful, local entrepreneurs should move
they garnered critical resources just like locals, except for from being necessity entrepreneurs to opportunity
incubation. entrepreneurs. Reasons why they choose entrepreneurship
Both migrant and local entrepreneurs defined success in should be from within, not due to external factors.
a similar manner. Local entrepreneurs managed to distinguish  Business planning stage and market research are not critical
themselves from the competition through innovation, at start up; participants channelled their energy in gathering
convenience, good customer service and customisation while critical resources they needed and took advantage of the
migrants relied on innovation, customisation and a good opportunity immediately. Majority of the participants
customer service to differentiate themselves from their became successful without detailed business plans; again,
competitors. The results of the research are vital in the Majority of the participants did not research the market.
formulation of conclusion and recommendations to help local They took the risk of making products/services then tested
entrepreneurs improve their performance. them in the market, and as they interacted with clients, they
VI. CONCLUSIONS AND RECOMMENDATIONS gave them suggestions on how to improve their
products/services which led to their success. Aspiring
Q. CONCLUSIONS entrepreneurs should skip those stages but I suggest further
research to be done to confirm if these two activities are
Entrepreneurship is vital in every economy so each really necessary for success.
entrepreneur should aim to be successful to help governments  I suggest aspiring local entrepreneurs should put more effort
in improving the welfare of individuals and improve their into their businesses; save and bootstrap as opposed to
standard of living. However, local entrepreneurs are not grants, so that they can feel the urgency for their businesses
contributing much despite the fact that their governments are to start paying off. All successful local entrepreneurs
supporting and favoring them over migrant entrepreneurs. interviewed did not get any grant or funding from
Migrants outperform them; they are more successful than their government organisations as Citizen Entrepreneurial
local counterparts so this research aimed at helping local Development Authority (CEDA).
entrepreneurs improve their performance and be competitive  Local entrepreneurs must go for training in business
as their counterparts. It wants to find out the entrepreneurial development support providers such as Local enterprise
processes followed by both locals and migrants which make Authority (LEA) or go for business incubation in
migrants more successful, hence the following research organisations as Botswana Innovation Hub, attend seminars,
objectives; expos and events if they do not have the skills and expertise
necessary to successfully run their ventures. They also offer
 To understand how local and immigrants entrepreneurs guidance on how to do business, help them network, and
identify opportunities information on obtaining finances.

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
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VIII. APPENDICES

Appendix 1; Internally and externally stimulated opportunities

Appendix2; a summary of the stages of the entrepreneurial


source; (Bhave, 1994)
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
resources wisely
and identifying idea in the form of a resources that to create value to entrepreneur decides
different
opportunities and detailed proposal one needs; stakeholders inter what they want to do
alia: employees,
also studying the (business plan). One (whether to look customers, with their business.
investors
market. This idea decides if they need to for a loan, Whether to expand

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
could be patent their idea, investors or use their markets to other

completely new copyright it or if they one’s savings) countries, do product

or improving need a trademark and and non- developments or sell.

what is already in also choose a place financial One has to have

the market. where they will be resources future plans regarding

Opportunities are located. (human). their 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

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

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
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 market. it is closed down.
business needed to start
opportunity. operation.
(Edom, 2016) An entrepreneur An entrepreneur drafts a Seed financing- One has to Some businesses
identifies and business plan, but for Looking for acquire customers succeed while others
evaluates a entirely new ideas it ways 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 different from how an At this point, the business did not
has to choose an entrepreneur anticipated looking for have real customers.
idea which goes hence the need for tests, funds is not easy One should look back
along with their retests and corrections. as people who to see where they
talent and can fund do not went wrong and what
passion. trust an worked so that one
entrepreneur could understand the
with their funds. areas that need
It is best for one improvements. If it
to look for funds succeeded, one
from friends and should note both
family or resort small and big wins as
to small well as loses to
business loans eliminate them
as their completely. One
requirements are should focus on
much more making customers
lenient even happy and not hide
though they at success tips to help
times have others to become
shorter successful.
repayment
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 innovation, identification of a worth the investment capitalizing the launched. It now and works towards
2017) problem or a need (time, financial and opportunity. becomes a legal being sustainable.

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International Journal of Economics, Commerce and Management Research Studies
Volume 1, Issue 1, August - 2018
which is followed non-financial resources Strategy and entity. Plans are executed at
by possible like human resources, operating plan this stage.
solution to a assets as Intellectual are necessary in
problem (a Property and the planning
business idea) relationships.) 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,
opportunity choice to continue, operation, reaping rewards,
identification, planning, recognizing integrating, frequent development
gathering critical resources, launching of the to take advantage of
information, assessing risks, business, tactics opportunities
venture garnering resources, to survive,
formation, idea development business plan
screening to implementation,
check viability, running the
identifying where venture,
to create value, organizing
product resources,
development building on
success, running
the venture.

71-90
Appendix 3; study design
3. What is your nationality?
Method Form of Requires Focuses on Motswana
Research Control of Contemporary
Question Behaviour Events? Other
Events? (specify)………………………………………………………..
Experiment How, why? Yes Yes ....................................................................................................
Survey Who, what, No Yes
where, how 4. When did you start your company?
many, how …………………………………………………………………
much? ………………………………...................................................
Archival who, what, No Yes/no
Analysis where, how SECTION B: OPPORTUNITY IDENTIFICATION
many, how
much 5. How did you identify the business opportunity?
History How, why? No No …………………………………………………………………
Case Study How, why? No Yes …………………………………………………………………
…………………………………………………………………
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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Volume 1, Issue 1, August - 2018
…………………………………………………………………
………………………………………………………………… Appendix 5; Consent form
…………………………………………………………………
………………………………………………………………… Research topic; a comparative study of entrepreneurial
processes between immigrant and local entrepreneurs
8. What was their response to the business idea? Researcher’s name; Precious Pearl Modise
………………………………………………………………… Programme of Study; Bachelor of Business Administration
…………………………………………………………….…… (Business Entrepreneurship And Enterprise Development).
…………………………………………………………….…… Email Address: preciouspearlmodise@gmail.com
………………………………………………………................. Phone; 77139286

9. How long did it take to actualise the business idea? What Purpose of research;
were the challenges?  To understand how local and immigrants entrepreneurs
………………………………………………………………… identify opportunities
…………………………………………………………………  To understand how local and migrant entrepreneurs acquire
………………………………………………………………… resources needed
…….............................................................................................  To determine how they use the acquired resources

SECTION C: RESOURCE MOBILISATION What you will be asked to do


Answer the questionnaire honestly
10. What steps did you follow to attain resources to take up
your business opportunity? Benefits of the research to you
………………………………………………………………… Results of the research will help your business to succeed by
………………………………………………………………… benchmarking on what other successful entrepreneurs are
………………………………………………………………… doing.
……….......................................................................................
Participation
11. What assistance did you get when you started your Participation is voluntary, participants can withdraw at any
business? From whom? time. Withdrawal will not affect relationship with the
………………………………………………………………… researcher now and in future
…………………………………………………………………
………………………………………………………………… Confidentiality
………………………………………………………………… Data gathered shall be analyzed without disclosing any
respondent’s name.
12. How did you acquire the most critical resources for I, agree to participate
starting the company? in this research. The signature below indicates my wish to
………………………………………………………………… participate.
………………………………………………………………… Signature; date;
…………………………………………………………………
……………………………………………………………….....
OPPORTUNITY IDENTIFICATION
SECTION D: DEFINITION OF SUCCESS
Appendix 6; How do entrepreneurs identify opportunities?
13. How do you define success?
…………………………………………………………………  The first entrepreneur is a disk jockey, who identified a
………………………………………………………………… problem with what was currently in the market. As a DJ, He
………………………………………………………………..... could not play the music anywhere he was. He had to be
(ii) In your view, is your business successful? Please explain near the music instruments and manually play the disk so he
…………………………………................................................. came up with a product that will make his job much more
……………………………………………………………….… convenient and enjoyable. He came with a product that
………………………………..............................................…... allowed him to play music from his phone. The device
……………………………………………………………......... connects his phone to music instruments like speakers, by
something similar to Bluetooth, which gives him an
14. What distinguishes your firm from others you are in the allowance to play the music from a distance, he doesn’t
same industry with (competition)? necessarily have to be by the music instruments.
…………………………………………………………………  He identified a gap in the way existing marketing companies
………………………………………………………………… offered their services so he got motivated to come up with a
………………………………………………………………… solution to offer globally competitive new marketing
……………………………………………………………....... services, educating and connecting companies with audience
through innovative initiatives. To achieve innovation, he
analyses trends and also relies on observation to be updated

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Volume 1, Issue 1, August - 2018
with changes in the market. He aims to increase brand
recognition and loyalty, use other social media platforms Passion; Participants managed to identify opportunities
like Instagram to market other companies’ products. because of the love and passion they had for Technology,
 The third respondent observed that her children were eager which motivated them to pursue the opportunity.
and capable of working with modern technology appliances
like cell phones at a very young age. Her vision was to see Experience; some respondents had been in the industry
other children around the globe aged 2 years to 16 being for many years, working for other people so they identified
able to use modern technologies. To achieve her goal, she opportunities from where they worked and pursued them.
introduced a program that gives children complete Some of them were not pleased with what was currently in the
understanding of STEM applications that stimulate thinking market (past experiences) so they managed to come up with
and learning skills to children during the early years when ideas and actualised them.
they are full of curiosity. Moreover, it allows children to use
the application even in areas without electricity. Observation; Some of the participants managed to come
 He was solving a problem of lack of skills and experience in up with business ideas because they were observant. From
business innovation and marketing through graphic their observations, they managed to come up with business
designing, signage design, corporate photography, ideas and actualised them.
animation videos, bulk SMSing and marketing strategies.
 “there was a need for efficient data collection services in Appendix 7; how long do migrant and local entrepreneurs
Botswana, which relied upon technology!” that was the take to actualise the idea? And why
problem she identified so she decided to bring a change in
the country by developing custom mobile software and  It took a year for the first respondent to actualise the idea
providing hardware solutions to enable her clients to because he did not have any skills about how music
enhance efficiency in their businesses. She does consulting, components work. He mostly relied on the internet and
software development for implementation, business experimentations. If the product did not work like he wanted
transformation and operational solutions to their clients. it to, he would go back to research.
 The respondent first worked as a software engineer so had
experience, love and passion for technology. In his previous  The second participant spent seven years to implement his
job, he realised there was a gap in the market which he idea as he did not have enough resources to start his
wanted to fill. he helps customers solve document business. Also, from his market research he found out that
management issues through providing document potential clients did not understand what I wanted to do.
management software, products and software support, multi-  It took 4 months for my second respondent to actualise as
function devices and consumables she was working with an American company. She waited to
 The Indian national’s uncle identified a gap in the laboratory get the right curriculum used in the USA. Lack of equipment
equipment so he asked the respondent to come to Botswana also delayed the actualisation so she had to borrow money
from a commercial bank. Moreover, getting the right
and bridge the gap. He provides government schools and
instructors and training them delayed implementation.
private institutions with laboratory equipment. My
respondent had passion for his business, he was offering the Selecting schools for their MVA (minimum viable product)
same service at his home country before relocating to and signing agreements was one of the reasons she gave.
Botswana.  He took a year and four months to actualise because
 Her friend identified a gap in the market then informed her resources were in short and he had to do market research.
of the opportunity to come and capitalise on. Her friend  He needed to acquire finances and assets to carry out service
realised there was shortage of power in the country but there provision, struggled finding well trained and qualified staff,
is abundance of sunlight so when she heard about the and finally having to meet actual decision makers in
opportunity and the chances of it being lucrative, she organisations he targeted delayed idea actualisation. He also
relocated to Botswana to pursue the opportunity. She had to do market research. It took 3 years.
provides solar lighting solutions by manufacturing solar  “I acted on the opportunity immediately. The challenge I
flood lights, solar streets light, solar car park light, solar faced was that key stakeholders like employees were not
fitting with logo and solar panels. very committed. Moreover, day to day challenges would
 Respondents 9 and 10 provide both software and hardware force me divert plans I had.” he explained.
solutions by repairing electronic gadgets and updating  “I immediately came to Botswana to actualise,
software for her clients. They were motivated by passion, unfortunately, the government, who was also my customer,
skills they had and the fact that there were a few was not that supportive to me as a migrant. They mostly
entrepreneurs offering similar products. favored local entrepreneurs!” those are the reasons he
indicated.
Thus, the researcher managed to come up with the  Government regulations hindered her from actualising her
following themes for opportunity identification; idea so she took about 2 years to start the supply. Market
research also delayed her because she wanted to be sure of
Information; some of the respondents managed take what the market really wanted.
advantage of opportunities because they got information about  She took a year to implement because she had to garner
the opportunity available from friends and families, then critical resources first and research more about the viability
actualised the ideas. of her venture.

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 She was faced with challenges of capital and reluctance  She said she had saved money from her previous job and
from her business partner. “I also did market research” so it bootstrapped. Also, her friend helped her garner critical
delayed her to actualise the idea. resources she needed.
 She looked for a mentor when she got to Botswana to give
Themes her guidance. Motivation and finances she was assisted by
friends and family.
Regulations; some entrepreneurs took a long time to
 She was assisted by family and business partner who
implement because there were government regulations and
motivated her and gave financial support. She also
policies which were not supporting them as migrants
contributed her skills to the business and money she had
saved to pursue the opportunity.
Reluctance; other respondents were challenged with the
problem of lack of commitment of business partners, Themes
employees and customers who were not very convinced of
switching to new products. Bootstrapping; some respondents managed to garner
resources by hiring equipment and buying second hand
Research; Some respondents wanted to research about equipment they needed. Another respondent stated that he
the market first. Some were developing something completely recycled old parts to make his product.
new and unique so to them market research was very
important. Incubation; Botswana Innovation Hub assisted some
respondents in accessing skills, establishing networks and
Scarcity; Skills needed, finances and assets and tangible assets they needed to start and run the venture. They
equipment needed were in short for most respondents so it also mentor entrepreneurs
delayed idea implementation.
Savings; Other respondents used savings from the
RESOURCE MOBILISATION previous job and others from their savings accounts to garner
resources they needed.
APPENDIX 8; How did you acquire the most critical
resources for starting the business? Education; some respondents relied on the skills and
expertise they had to garner resources they needed. Due to the
 The first respondent relied on the internet to equip him with education gained in previous jobs, some entrepreneurs were
skills and knowledge of music components. To finance his able to gather resources. Some were able to access research
product, he would do piece jobs to supplement the little facilities because they could read and write.
money he got from providing deejay services. He also
recycled old parts which were no longer working to make Relationships; Business partners, family and friends
his product. Because he was already in the industry, he had helped some participants in forming networks, financed some
already established network in the industry. He was a DJ entrepreneurs, and offered their second hand assets at very low
and his target market was also DJ’s. Finally, media cost, and sharing business skills they had with entrepreneurs.
companies sponsored him to market his product even Banks; Banks offered other entrepreneurs a loan at an
further. interest to that they can be able to gather resources.
 Bootstrapping and personal savings financed his product.
Botswana Innovation Hub also incubated him to accessing SUCCESS
critical resources; he was offering a product completely
different, moreover, in a new industry, but him having skills Appendix 9; How did you acquire the most critical
on marketing made resources much more accessible. resources for starting the business?
 Her family helped her anyhow they could and gave her
support. He pointed out that a bank also assisted with a loan.  The first respondent defined success as having achieved the
“I had to bond our assets with commercial bank for a loan” set goals so he felt he was victorious as he achieved the goal
she stated. of wanting to see his product work but has not achieved
 He stated that his business partner assisted him and also, another goal of wanting to broaden his market share.
relied on his allowance to finance his business. Moreover,  To him success means enabling other people to pursue what
he bought second hand equipment and hired some resources they want so he believed he was not yet successful.
he could not afford.  Success means, “To be able to still see your vision despite
 The fifth respondent stated that angel investors helped with failures on the way, to study failures and learn from them
funding. BIH also incubated him to access critical resources. and never quit.” She believes she has failed as far the
 “I did not get assistance from anyone, I relied on the skills Botswana market is concerned. However she believes other
and experience from my previous job and saved money to markets in Africa might give her better results.
start this business” was the response he gave. He also said  To her, success is an accomplishment made due to previous
that as he was interacting with his potential customers, they bit of achievements and failures experienced. Her answer to
gave him advice. whether she is successful was yes. She stated that she is
 Since his uncle was already staying in the country, he helped successful, based on the success criteria that they use, which
him access resources. He also obtained a loan from a bank is short term based. They focus on individual projects and
to finance his business. analyse them accordingly to ensure they are a success, and

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continue opening a stream of projects to make more profit.  He said what differentiates him from the competition is that
She concluded that even though they were not satisfied with they provide innovative technologies, with proven records
their past achievements, they keep on working to reach and results. Also they customise their services for clients
greater heights. thus meeting individual needs.
 The fifth respondent defines success as a positive bank  When asked the question, he answered, “I do not focus on
balance, good and committed employees and long term my competitors; I focus on myself because focusing on my
contracts with clients. He believes he is on the road to business help me achieve the goals I had set for the
success. company. Focusing on competition makes one lose focus
 Success to him means being able to sustain oneself and because you always want to be a step ahead of them.”
everyone around, making profit as a shareholder and  The seventh respondent said good customer service and
overcoming day to day challenges so he believes he is charging reasonable prices helps them beat the
successful. competition. He supplies Batswana businesses as per the
 Having principles, being committed and delivering to country policies, who then supply other organisations, so
customers is what makes him successful. He therefore, that makes him a bit cheaper. His customers are also his
believes he has made it because there is constant supply competitors.
despite the seasonality of his products. They are mostly  What differentiates her business from the rest is her
requested when schools are open as his major customers are customer service.
government schools.  She said, “We serve the needs of our customers and give a
 She said success means, “providing the market with its great customer service.”
needs and generating enough profits.” She believes she is  She attributed her success to good customer service and
successful as she is able to sustain the company the going an extra mile as compared to her competition.
company with its profits. She added that her success is due
to good customer service. Themes
 Success to her is the accomplishment of goals so she
believes she is not yet there as her business not Convenience; some respondents said their products are used
internationally recognised, which is her goal. with relative ease and little effort as compared to their
 The last respondent said success is reaching both personal competitors.
and business goals so since her business has expanded she Innovation; Finding efficient and new ways of doing things or
considers herself successful. making new products or services helps other entrepreneurs to
be a step ahead of their competition.
Themes derived Service; most entrepreneurs said they had the best customer
service, which attracts more customers to their businesses.
Profits; Some respondents considered making enough profits Customisation; Modifying products and services to each
to sustain themselves and their businesses as being victorious. customer’s needs differentiates some respondents from their
Experiences; Some respondents defined success as competition. Needs of each individual customer are met.
experiencing failure and using it as a stepping stone to greater
heights, celebrating accomplishments and making sure they Appendix 11; Summary of biographic information
continue being victorious.
Goals; Some participants defined success as having a vision
and making sure one achieves their vision and goals. Interviewer gender Age nationality Year
Growth; Success to other respondents meant broadening the range they
market share, expanding to other areas and countries to be started
internationally recognised operati
Delivering; making customers happy so that they continue on
buying from the venture is what other respondents consider as 1 M 31-50 Motswana 2011
being successful. 2 M 18-30 Motswana 2014
3 F 51-70 Motswana 2012
Appendix 10; What distinguishes your firm from others you 4 M 18-30 Motswana 2016
are in the same industry with? 5 M 18-30 Motswana 2011
6 M 31-50 Central 2000
 “I differentiated myself by giving my customers a choice to Europe
play the music from a distance, they don’t necessarily have
7 M 31-50 India 2009
to be near the music equipment.” He said
8 F 18-30 Gambia 2013
 What gives him a competitive edge is that he is constantly
9 F 31-50 Ghana 2014
innovating and reinventing.
10 F 18-30 Zambian 2012
 She said, “We believe a child must learn on their own pace
and our competitors still follow the traditional way of
teaching with one teacher, directing up to classes of 40
students and all expected to follow a unison.”
 He said that customer service and work ethic are on point
that is why they are the most preferred creative agency.

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