A study of informal sector entrepreneurial activity within the townships in Emfuleni Local Municipality / by Xolani Simphiwe Makhoba
Past research has established that South Africa has a problem of high unemployment rate.This is accompanied by a low entrepreneurship activity that tends to lag far behind that ofother developing countries as measured over the years by the Global EntrepreneurshipMonitor (GEM) research. Entrepreneurship and small business are well recognised for theirrole in both economic growth and job creation. This study set out to investigate the informalsector entrepreneurial activity in Emfuleni Local Municipality which has experienced largescale retrenchments over the past decade. A literature survey was conducted to understandthe characteristics, successful practices and weaknesses that distinguish the informal sectorfrom the formal sector.The empirical study which was conducted by means of survey questionnaire among theinformal sector entrepreneurs indicated that entrepreneurship in the informal sector canprovide a form of income for some people that cannot be absorbed in the formal labourmarket. The findings of the study was that this area of entrepreneurship is dominated by theyouth as more than half of the respondents were below the age of 35 years. It was alsofound that most of the entrepreneurs have never been formally employed which may beproblematic when it comes to skills. While most of them recognised the importance oftraining and skills, they were also positive that they can benefit from training especially in thearea of marketing and promoting their product and services.These entrepreneurs however do not seem to be benefiting from government initiatives suchas the workshops offered by the local municipality and other assistance offered by thegovernment agencies. The low skills level of most of these entrepreneurs may also hindertheir ability to grow their businesses beyond the one–man operations. It is recommendedtherefore that the organisations such as the National Youth Development Agency doubletheir efforts in helping the youth to become successful small business owners. Thegovernment agencies, particularly those targeting the youth should make a conceited effortto provide training in particular to these people if they are to make a lasting impact on jobcreation.
Year of publication: |
2010
|
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Authors: | Makhoba, Xolani Simphiwe |
Subject: | Entrepreneurship | Small business | Economic growth | Job creation | Entrepreneurial activity | Emfuleni Local Municipality |
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