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Somali businesses are well known for an unusual pace when it comes to their business growth and development. Many wonder what their secret is to this growth and even though this community believes that they have none, they are still willing to expand and share their business skills with the rest of the small business community. Mdanyana, 40, is a South African businesswoman who is the co-owner of ispoti an illegal tavern situated in an informal settlement called Ellias Motsoaledi behind Chris Hani Baragwanath Hospital in Soweto.
She once owned a spaza shop but said the establishment of Somali businesses in the area killed her shop. In all parts of the country, Somali shops are popular for offering goods and services at cheaper rates than most South African shops.
From travel agents to barbershops, from cash and carry to clothing shops, success is assured. In 8th Street, where Somali nationals seem to dominate, many of them have flourished as entrepreneurs. Even though their businesses provide similar goods and services, this is considered less of a competition or threat but rather a benefit. When Mdanyana followed her boyfriend to Johannesburg from the Eastern Cape in , she struggled to find employment in Gauteng.
And when she got married in , Mdanyana said that she agreed to stay home and start her business. When they started their business it was a normal spaza shop where she sold essential household goods. Instead of selling full packets of teabags, she would sell a single teabag for 15 cents, candle lights, paraffin, half a loaf of bread and many other items typically found in a spaza shop. Mdanyana believed she was doing well until when her business started failing.