Despite numerous research efforts and a number of 'friendly' national policies on the field of the informal economy in South Africa, there does seem to be a continuous public policy conflict at local government level in this country. The evolution of the informal economy and the policy crisis at local government level seem to be largely shaped by the legacy of colonialism and racial capitalism. This study focuses on three critical policy areas of informal trading, namely; the taxi industry; the shebeens that belong to the category of home based economy; and street traders. These three are the oldest form of informal economic activities pursued by the Africans (indigenous people). The study will investigate the progress of informal trading as a critical policy area for municipalities made thus far since the democratisation of South Africa in 1994. It confronts the lack of progress by this sphere of government. It concludes by exposing the neglect of the three types of informal trading. It also concludes that the development of sound informal economic policies at municipal level is a prerequisite as there are national policies and legislation that need to be adhered to. The study recognises that despite the development of sound informal economic policies being obligatory, there is an underlying social, political, environmental and economic need for this important process. It finally identifies the specific critical areas that need to be addressed and recommends a policy process that is participatory, credible and progressive. / Thesis (M.Soc.Sc.)-University of Natal, Pietermaritzburg, 2002.

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Thesis (M. Tech. (Business Administration)) -- Central University of Technology, Free State, 2014 / This exploratory study seeks to contribute to the theoretical and empirical understanding of the transition of small businesses from the informal to the formal sector. It builds on the role of the informal sector as “engines” for economic and socio-cultural development. Using selected businesses in the Mangaung area of the Free State province as case studies, this study investigates the motives for transition of informal businesses to the formal sector in South Africa, challenges encountered in the process of formalisation and the coping strategies relied upon to deal with challenges encountered in the process of formalisation. Key indicators were identified from the literature and were further developed for investigation. A qualitative approach was used for the collection of data from selected transited businesses in the Bloemfontein area using semi-structured interviews. Findings from the study suggest that the decision by small business owners to formalise is motivated by their desire to grow and expand their businesses; access to proper banking services; and to access government contracts and tenders. The results also reveal that the quest for growth is however hindered by long queues endured by business applicants during the process of formalisation; lack of adequate and relevant information on the process of formalisation; coupled with the lack of government support for informal businesses’ transitioning to the formal sector. Findings further revealed that adequate information on the process of formalisation and self-trust are key coping mechanisms needed by small business owners to successfully progress/ transit to the formal sector. Based on these findings, the study recommends that government both provincial and national play a more proactive role in regulating the informal economy by creating an environment conducive for their growth and development, and facilitating their transition to the formal sector. Informal small business owners also must be provided with information on the process of formalisation and of the existing government structures put in place to support businesses in their transition phase.

Abstract: The study deals with the interplay between migration and metropolitan growth in Peru during the last decades. The key question is to what extent Peru's rural-urban migration and rapid urban growth is triggered by opportunities within the formal and informal sectors in the growing metropolis of Lima. Aggregated data about migration have been related to information of socioeconomic and geographical conditions in rural and urban areas. Multivariate models of interregional migration are constructed and tested. A study of the life paths of a limited group of migrants has generated hypotheses about causes of migration and the assimilation of migrants in the city. Migration is related to historical changes in Peruvian society and to structural and individual conditions affecting migrants. The historical transformation of the rural and urban sectors is one important precondition for the increasing rural-urban migration in 20th century Peru, including the declining importance of the traditional socio-economic structure (the hacienda system and the peasant communities), population growth, and the increasing importance of capitalistic forms of exchange and production as well as of interregional interaction and non-agrarian sectors. Regional disparities appear to be the most important structural condition affecting migration in Peru, in accordance with the so-called gap-theories, which indicate that changes and conditions in urban areas are more important for temporal and spatial variations in the migration pattern, than corresponding changes in rural areas. Furthermore, young and better educated individuals are overrepresented in the migrant groups and outinigration seems to be highest from rural areas with well-established urban contacts. Urban pull is more important than rural push. The study reveals that personal contacts are essential as a generator of migration, for information flows and for the migrants' adaptation to the urban society. In general, the rural-urban migration can be regarded as a rational adaptation to living conditions in rural and urban areas, since most migrants seem to have a higher living standard in the cities in comparison with their former situation in rural areas. A significant conclusion is that informal solutions are important for solving migrants' housing and subsistence problems. The informal sector is interpreted as an integrated and often dynamic element in the urban economy, rather than as an indicator of over-urbanization. The study provides empirical support for a conjecture termed metropolitan informal sector pull, in which the informal sector of Lima is a major part of the magnet that pulls people from the rural areas and generates metropolitan growth and migration in Peru. / <p>Diss. Umeå : Umeå universitet, 1988 ;</p><p></p><p></p><p></p> / digitalisering@umu

M.Com. ( Business Management) / Please refer to full text to view abstract

M.A. (Development Studies) / With the ever-increasing rate of urbanisation, developing countries are faced with a new problem - that is, the decline in the urban environment and living conditions. This scenario is likely to further deteriorate due to unprecedented levels of population growth and rural-urban and international migration. The employment-carrying capacity of urban areas is eroded by these trends, resulting in an influx of labour, which cannot be absorbed by the formal sector. As a way of circumventing poverty, the urban unemployed population resort to informal activities for survival, regardless of the legal consequences. The literature on the informal sector is very controversial. This is partly because the nature of the sector itself is contradictory and defies precise definition. More importantly, various analysts and policy-makers approach the informal sector with different expectations. These different expectations of the informal sector are, in turn, related to the preconceived points of view of the analysts as to what constitutes the proper dynamics of the informal sector and what the role of the sector is in alleviating urban poverty. Central to the views on the role of the informal sector in urban poverty alleviation have been the concerns of governments of developing countries on whether to support it or control its activities. The realisation by governments of the need for expansion of the informal sector has resulted in their intervention in this sector by means of regulations, programmes and frameworks to define how the business activities should be carried out. Interventions in the informal sector have resulted in a distortion of the production structure in favour of the formal sector. On the other hand, the very nature of informality and its inherent characteristics stimulate profitability for the hawkers (peddlers) or the small business entrepreneurs. The formalisation of the informal sector eradicates the economic dynamics, which necessitate the viability of the activities being undertaken. The consequences have been the further impoverishment of the small-scale entrepreneurs...

Thesis (M.Com. (Development Theory and Policy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Economic and Business Sciences, 201 / Drawing on data from the National Income Dynamics Survey (NIDS) from 2008-2012, this paper investigates informal-formal earnings gaps in South Africa in order to assess the validity of labour market segmentation theories and to shed light on the motivations behind informal labour. In addition to controlling for observed individual characteristics using pooled OLS regression, fixed effects and quantile regressions are also estimated to control for time-invariant individual heterogeneity and to assess variations in earnings gap along the income distribution. Results are indicative of segmentation both within informal employment and in the labour market as a whole. Overall, informal employment in South Africa can be characterised as highly diverse and heterogeneous, with earnings differentials varying by employment type (whether salaried or self-employed), gender, and level of income. This earnings analysis is complemented by a brief exploration into the non-pecuniary characteristics of informal employment, with a consideration of the relationship between subjective wellbeing and informality.

There is a general conformity in employment discourses that informal employment is not welcomed in the employment circles regardless of how well marketed it could be. The government of South Africa on its state owned projects in the construction industry introduced policies that promoted local labour procurement of employees a process that has resulted with heavy contestations due to its application. This study examines the impact of local labour procurement policy on locally recruited employees and those who got retrenched purely for the purpose of accommodating the policy requirement. This is done through the use of Kusile power station as a case study. It adopts qualitative research approach using interviews and document analysis. The study also examines this policy in conjunction with the current labour legislation and the effects it has on the existing labour and the proposed amendment labour bills. It also examines the motive behind the introduction of the policy and who has benefited from it. However the findings reveal that there is inconsistence in the application of the policy. The purpose why the policy was introduced is to reduce unemployment poverty in the areas where these projects are being constructed. Further also the study reveals that in as much as the policy promotes informal employment, this type of informal employment is different from the commonly well-known informal employment purely on the aspect of remuneration and benefits compared to the common one.

This research study examines the experiences of service workers in the informal economy by exploring informal hairdressing operations within the Johannesburg CBD. Drawing on ethnography at a hairsalon in Braamfontein and semi-­‐structured interviews with hairdressers, customers, hairsalon owners and City of Johannesburg officials, it argues that the emotional and affective labour in this kind of work offers hairdressers an important basis for them to weave meaning into their work. The affective relationships that they create through hairdressing present them with the potential for the self-­‐constitution of their work and lives.

A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management (ENVC) Johannesburg, 2017 / The ability of immigrants to craft successful livelihoods in the harsh economic climate that seems to overwhelm the local population has led to them being blamed for the unfortunate plight of South Africa’s poor, with the result that there has been targeted violence on immigrants in recent years. Informal sector entrepreneurship is at the heart of this with immigrants said to be outperforming local entrepreneurs, and taking away the last option of earning an income. Entrepreneurship is quoted as the only lasting solution to the poverty and unemployment that plagues developing countries. The ability of immigrants to succeed in a sector that is considered unproductive is worth investigating. In this study, cross sectional data is used to compare the antecedents of Entrepreneurial Performance between foreign Immigrants and South Africans. The findings are that, while both group’s performance is affected by Entrepreneurial Action; South African performance is driven mainly by deprivation, a factor that has no effect on immigrants. This puts the recent explosive response of local entrepreneurs to immigrant competition into perspective, and necessitates interventions that will, not only curb further xenophobic violence, but up-skill local entrepreneurs and enable them to make a living out of informal sector entrepreneurship. Contrary to popular belief, none of the population’s performance was linked to Social Capital. There is no use allowing people into the country only to stifle their ability to sustain themselves. Immigrant Entrepreneurship is a reality that South Africa needs to embrace. / MT2017