A COMPARATIVE ANALYSIS OF THE BEST PRACTICE IN
Date
2011-05-16
Authors
Maluleke, Timothy
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Abstract
The informal economy plays an important role and positively contributes to the
economic development of South Africa. The purpose of the research is to
explore the comparative analysis of the best practice in support of street
trading in South Africa, with a particular focus on the three metropolitan
municipalities of Johannesburg, Tshwane and eThekwini. The South African
government has embraced and supported the informal economy by
developing policies that are meant to improve the life of informal traders. The
literature review indicates that informal traders face a number of challenges
and constraints, such as lack of finance, cost of registration, and complicated
regulations and procedures that hinder the development of the informal
economy. The current legislation and policies need to be in favour of informal
traders, as they have been a centre of attention because of the high rate of
unemployment. Many individuals who are unemployed tend to resort to
informal sector activities for survival.
A qualitative study was conducted in the three metropolitan municipalities to
compare best practice in support of street traders. This has been done by
looking into legislative policies and regulations that govern and support the
development of informal traders. The policies and regulations of the three
metropolitan municipalities were extensively used in the research to
determine the support they give to the development of informal traders.
The research findings have revealed that the reason for becoming street
traders is that the majority of the population is not employed and/or has lost
formal employment through retrenchment and had to become informal traders
as a last resort to support their families and improve their living conditions.
The research also revealed that the metropolitan municipalities have assisted
street traders by enhancing their business skills through training and
mentorship programmes, which have helped them to start realising profitability
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in their businesses and enable them to run their businesses in a professional
manner. Studies have shown that the general challenges and obstacles faced
by street traders include, among others, the lack of shelter for their stalls, lack
of toilets, water, electricity and storage facilities for their stock and goods, as
well as the unsafe environment in which they find themselves, but the three
metropolitan municipalities have done good work in addressing these
challenges and obstacles.
Description
MBA - WBS
Keywords
Informal traders, Informal economy