The viability of informal microenterprise in South Africa

• Type: Article in International Scientific Journal
• Date: 2011

Authors

Woodward, D (Author) Other; Rolfe, R (Author) Other; Ligthelm, A (Author) Other; Paulo Guimaraes (Author) FEP

Journal

Title: Journal of Developmental Entrepreneurship

Vol. 16

Pages: 65-86

ISSN: 1084-9467

Publisher: World Scientific

Indexing

Scopus - 34 Citations

Other information

Authenticus ID: P-008-NDK

DOI: 10.1142/s1084946711001719

Abstract (EN): This paper analyzes entrepreneurs in South Africa's informal sector. The aim is to determine the extent to which African informal retail trade spawns viable enterprises. To assess the prospects for South Africa's informal retail sector, we obtained questionnaires from owners of small-scale establishments in a random sample taken throughout the country in 2007. Owner's income and sales data provided a basis for investigating viability. Regression analysis tests hypotheses identified as crucial to higher income and sales, including startup capital, size, male/female ownership, business training and the proximity to shopping centers. Also tested is the influence of urbanization externalities on sales and owner's income. Initial capital and positive urban externalities have a strong influence on the ability to generate a sustainable livelihood for informal entrepreneurs. After controlling for startup capital, location and other factors, it appears women entrepreneurs face distinct difficulties in generating a viable income through informal retail trade. © World Scientific Publishing Company.

Language: English

Type (Professor's evaluation): Scientific