The complexity of operating in a country rich in resources, yet constrained by its core : A qualitative case study of the South African business environment and how Swedish SMEs establishment are affected by economic and political changes

Abstract: Since 1994, South Africa has undergone comprehensive political and economic changes in a positive direction, however, the country’s business environment still constitutes of corruption and inequity. The purpose of this thesis was to investigate how South Africa’s business environment affects Swedish SMEs establishment in the country. The methodology chosen for this research was a qualitative multiple case study with an abductive approach. The theoretical framework was established based on various theories related to business environment, internationalization and risk management, these theories was interlinked into a conceptual framework. In the empirical chapter, the primary data gathered from four cases was presented and thereafter analyzed together with the conceptual framework. The research concludes that the South African business environment affects the Swedish SMEs business activities in the country differently, depending on the firm’s size. The last decade’s political changes have generated in a more cautious approach among Swedish SME and their establishment in the country. Lastly, limitations of the research and recommendations for further research is outlined.