Bibliography: pages 229-245. / This thesis is centred around the experiences of traders and taximen in Qwaqwa, the smallest of South Africa's 'homelands'. It aims to investigate the extent to which small-scale entrepreneurs of various kinds can be seen to be participating in processes of class formation within the homeland. The focus adopted directs attention away from the issue of poverty which has dominated rural research over the past decade. The thesis also seeks to contribute to existing studies of class formation in the homelands, which address the problem from the perspective of 'state' and 'capital'. This study seeks to broaden this focus through a historical analysis of social processes at the local-level. It argues that traders and taximen in Qwaqwa cannot simply be regarded as the recipients of state initiatives, but are agents in forging their own opportunities and relationships.