“South Africa provides an important case study of how citizen attitudes and behaviours materially affect the business climate for migrant entrepreneurs. Trying to run a business in the informal economy is an especially hazardous undertaking in South Africa. First, the state (both central and municipal) has adopted a protectionist position, which leads to various regulatory and policing responses that seek to disadvantage, if not eliminate, migrant entrepreneurship. Second, the police run their own protection (or non-harassment) rackets to benefit financially from those able to pay. Third, South African competitors, particularly in the spaza sector, have increasingly adopted a strategy of using violence to intimidate and drive migrant entrepreneurs out of an area. And fourth, a minority of citizens have turned hostile attitudes towards migrants and refugees into violent actions by forcibly shutting down migrant-owned businesses and attacking their owners and employees. Underlying all of these responses is a strong xenophobic undertow.”
