Experiences of large South African companies in Sub-Saharan Africa : lessons for small and medium enterprises .

Abstract

ABSTRACT South African companies were largely excluded from doing business in other parts of Africa during the apartheid area. However, since 1994, South African large companies have made successful inroads into the continent. Abundant research describes the successful venturing and the experiences of these large companies in Sub Saharan Africa but little study has been done that can be used specifically by small and medium South African enterprises seeking to expand their activities north of the Limpopo. Through a qualitative research, and using semi structured interviews, this paper used the conceptual framework developed from the experiences of major South African firms doing business in Africa to build a new model that is applicable to small and medium enterprises. This study finds that many drivers and constraints to venturing in Sub Saharan Africa which are relevant to large firms are not relevant to small and medium enterprises. It also uncovers a new driver (perseverance) and a new constraint (business prejudice) to venturing for small and medium enterprises. It becomes clear from this study that large and small firms respond to different dynamics when it comes to venturing.