African immigrants in contemporary South Africa can be perceived as a problem – the threatening other. Based on a case study of the Johannesburg inner city, this thesis aims to deconstruct this notion. It does so by investigating the nature and types and contribution of African immigrant traders` businesses to the Johannesburg inner city. In deconstructing the perception that African immigrants are the threatening other, and being infinitely aware that perception issues and the experiential realities hospitable to its centred on the human subject, this case study adopted a humanist geographic and critical realist approach by deploying a qualitative in-depth interview technique of both African immigrant and South African traders. This thesis suggests three important outcomes. The first is that: to view all African immigrants as the threatening other is too simplistic an assessment of an otherwise complex and dynamic set of relationships and interrelationships amongst and between African immigrant and South African traders. Second, some African immigrant traders do make a meaningful contribution to the Johannesburg inner city, whereas others do not. Third, the activities of African immigrant traders that may be considered as a threat by a section of the population are treated as a benefit by another. These nuanced insights and findings in this study not only render any analysis that projects all African immigrants negatively as an incomplete appraisal, but also suggest that it can never be correct to view them as such without capturing the dynamics that this work suggests. Such a finding not only challenges distorted and partial reporting by the media and also questions policies, which may be built on the wrong assumption that all African immigrants are a problem, but also extends the study of migration related issues in a South African context. / Geography / D. Litt. et. Phil. (Geography)

Dissertation submitted in compliance with the requirements for the Masters Degree in Technology: Business Administration, Durban University of Technology, 2013. / This study explores the factors that limit the long-term survival and development of micro and survivalist enterprises of a selected informal sector in Durban, KwaZulu-Natal (KZN). Micro and survivalist enterprises play an important role in the South African economy, but despite their significance, several studies have shown that these enterprises fail within their first five years. The high failure rate is partially attributed to lack of support from external sources of support as well as the enterprises’ own internal weaknesses. The study was descriptive, exploratory and quantitative in nature. Questionnaires were used to gather data. The questionnaires were personally distributed at the business sites of the respondents. The respondents consisted of 108 micro and survivalist enterprises of a selected informal sector in Durban, who were selected by means of a non-probability sampling method. The results obtained identified a number of limiting factors for the selected informal enterprises’ long-term survival and development. The limiting factors, that are internal to the businesses, included: poor planning, lack of networking, insufficient business experience, poor pricing knowledge, managerial and business knowledge incompetence and lack of literacy, education and training. Those that are external to the businesses comprised of inadequate knowledge in terms of the institutional and supportive environment. Few respondents knew about financial and non-financial services and access to training and development programmes provided by government, semi-government and other institutions. As a result, recommendations to increase awareness of the different incentives available to micro and survivalist enterprises have been set.

This thesis is composed of three distinct but related essays. The first essay studies the role of the size of the economy in mitigating the impact of public sector corruption on economic development. The analysis is based on a dynamic general equilibrium model in which growth occurs endogenously through the invention and manufacture of new intermediate goods that are used in the production of output. Potential innovators decide to enter the market considering the fraction of future profits that may be lost to corruption. We find that depending on the number of times bribes are demanded, the size of the economy may be an important factor in determining the effects of corruption on innovation and economic growth. The second essay presents an occupational choice model in which a household can choose either formal or informal entrepreneurship or at the subsistence livelihood. Credit market constraints and initial wealth conditions (bequest) determine an agent's occupational choice. Corruption arises when bureaucrats exchange investment permits for bribes. Corruption worsens credit market constraints. Equilibrium with corruption is characterised by an increase (decrease) in informal (formal) entrepreneurship and a decrease in formal entrepreneurship wealth. Since corruption-induced credit constrained households choose informal entrepreneurship as opposed to subsistence livelihood income in the formal sector, the informal economy is shown to mitigate the extent of income inequality. The third essay explains the role of bureaucratic corruption in undermining public service delivery, public finance, and economic development through incentivising tax evasion. The analysis is based on a dynamic general equilibrium model in which a taxable household observes the quality of public services and decides whether or not to fulfil his tax obligation. Bureaucratic corruption compromises the quality of public services such that a taxable household develops incentives to evade tax payment. We show that corruption-induced tax evasion increases the likelihood of a budget deficit, renders tax payable increase counter-productive, and aggravates the negative effect of bureaucratic corruption on economic development.

Thesis (MPA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Apart from meeting basic customer needs, small and medium enterprises in the townships are a source of employment and livelihood for many. Businesses in the townships of the Strand have mushroomed from a formerly neglected area, like others in various townships throughout South Africa. Yet very little is known about them and their owners. What are their characteristics? What traits distinguish those that make higher revenues from the rest? Many of these small businesses have emerged without government assistance, even though such support is often seen as a non-factor in determining the rate of an enterprise’s growth. Entrepreneurship, as literature often explains, is a dynamic endeavour which requires a business founder to display both determination and skill. Yet very few businesses normally survive the early stages. Many aspects of entrepreneurship need to be practically learned to enable the business to overcome many prevalent obstacles, and thus enable the enterprise to grow and contribute to job-creation. Not all entrepreneurs are alike in their capability to spot an opportunity. Also, entrepreneurs differ in their ability to either steer or set up systems to take an enterprise through its various transitions. Yet still, the financial strategic decisions made at inception stage often influence the rate at which businesses will generate revenues later in existence. Government, both local and national, has a responsibility to provide an enabling environment for businesses to thrive. Using a study of spaza and informal trade done in the past by Unisa and by Bojanala Platinum District Municipality as a baseline, this study surveyed 60.6 percent of businesses in the Strand townships that were identified through the database of both Khanyolwethu School and Sinobulumko Business Association. The main areas of focus were – the socio-economic and demographic profile, the physical characteristics, financing, relationship with suppliers, transport, income/turnover and traits that distinguish higher-revenue businesses from others. Analyses through the Mann-Whitney U, the Spearman's rank correlation coefficient, the chi-square and the Kruskal-Wallis test then showed that the businesses that tend to make larger monthly revenues are those that are owned by males, using cheque accounts for the business, and those whose main suppliers deliver merchandise to their premises. The businesses that make larger daily revenues were shown to be those that are owned by males, registered with CIPRO, using cheque accounts for the business and those whose owners have Grade 7 to 9 qualifications and above. For government, the results of this study call for a further refining of the criteria used for loaning to businesses in townships, as well as to make the public more aware of the assistance provided by government’s business support agencies. For banks, the study calls for the designing of a ‘Spaza Account’, tailored to the needs and skills level of businesses owners in the townships. Socially, the study calls for the tearing down of all the walls that make it difficult for open trade to take place / AFRIKAANSE OPSOMMING: Klein besighede in informele nedersettings spreek die behoefte aan van kliënte en genereer ‘n tipe inkomste, maar daar is min kennis oor eienaars se belange. Besighede in die Strand se informele nedersettings was gestig in minderbevooregte gebiede, soos baie ander regdeur Suid Afrika. Watter karaktereienskappe beskik hierdie eienaars om ‘n beter inkomste te genereer as die res van die inwoners? Baie van hierdie besighede het ontstaan sonder enige hulp van regering instansies ten spyte van ondersteuningsdienste wat aan hulle beskikbaar was. Afhangende van die groei van die besigheidseienaar word dit in elk geval nie in ag geneem nie. Entrepreneurskap verduidelik letterlik dat die besigheids eienaar uithouvermoe en vaardighede kan uitbeeld. Baie min van hierdie besighede oorleef hulle eerste fase vanuit die staanspoor. Baie aspekte van die besigheid moet prakties aangeleer word om daaglikse uitdagings te oorkom. Op hierdie wyse groei die mark en sodoende word werksgeleenthede geskep. Nie alle besighede is sodanig op hoogte van sake om geleenthede raak te sien nie. Dikwels verskil bestuurstyle van besighede om sisteme in plek te stel wat verandering kan meebring. Finansiële besluite wat geneem is aan die begin stadium het ‘n impak op inkomste wat op ‘n later stadium in die besigheid gegenereer word. Beide die nasionale en plaaslike regering het die verantwoordelikheid om ‘n goedgegewe besigheids omgewing te skep vir besigheidsgroei. ‘n Vorige studie van ‘n spaza en oor informele handel deur Unisa en Bojanala Platinum Distriksmunisipaliteit was as basis gebruik. Die studie het bewys dat 60.6 persent van besighede in informele nedersettings in die Strand geidentifiseer is deur gebruik te maak van die databasisse van beide plaaslike skole en besigheidsvereningings. Die hoof fokus areas was die sosio-ekonomiese en demografiese profiele, die fisiese karaktereienskappe, finansiering, verhoudinge met verskaffers, vervoer, inkomste en kenmerke wat die hoër – inkomste genererende besigheide van die ander skei. Analises deur die Mann-Whitney, die Spearman rank korrelasie, die Chi-square en die Kruskal-Wallis toetse bewys dat besighede met ‘n hoër maandelikse inkomste deur mans besit word wat hulle besigheide vanaf hulle eiendomme bestuur en gebruik maak van tjekrekeninge. Die besighede wat ‘n daaglikse hoër inkomste genereer is ook daardie wat deur mans besit word, geregistreer is by CIPRO, gebruik maak van tjek rekeninge vir die besigheid en daardie van wie se eienaars kwalifikasies van graad 7 tot 9 en hoër het. Asgevolg van die uitkoms van hierdie studie, soos van toepassing op die regering, moet vereistes vir lenings aan besighede in informele nedersettings hersien word. Die publiek moet ook meer bewus gemaak word oor die ondersteuning wat deur die regering beskikbaar gestel word. Ten opsigte van banke het die studie uitgelig dat daar ‘n spesiale ‘Spaza rekening’ geskep moet word wat voldoen aan die behoeftes en vaardighede van besigheidseienaars in die informele nedersettings. Op ‘n sosiale vlak vra die studie aan dat die ‘mure’ wat dit moeilik en onmoontlik maak vir ope mark besigheids geleenthede om plaas te vind, afgebreek moet word.

Cette thèse vise à identifier les contraintes institutionnelles et réglementaires qui limitent le développement des unités informelles à Djibouti en faisant à la fois une analyse microéconomique et macroéconomique. L’examen des institutions montre que des habitudes (corruption, passe droit) en matière de règlement de l’administration créent des coûts de transaction et obligent les micro-entreprises à se réfugier dans le secteur informel. Un modèle de régression montre que la qualité de la justice (mesurée par l’indicateur de Rule of Law de la Banque mondiale) est une variable déterminante pour expliquer le poids de l’économie non observée et donc celui du secteur informel, dans le PIB officiel. La dynamique des micro-entreprises est appréhendée à partir de 2 enquêtes (2001 et 2005) portant sur le même échantillon. L’analyse de la mobilité à l’aide de matrices de transition révèle l’existence non pas d’un seul seuil infranchissable, mais plutôt de trois (1 actif, 2-5 actifs, 6-9 actifs et 10 actifs et plus) et confirme la thèse du «missing-middle». L’analyse factorielle discriminante indique que la légalité est une variable déterminante pour expliquer le blocage apparent des micro-entreprises au-delà de 6 à 9 actifs. Enfin, l’enquête 2007 sur les activités de transfert d’argents (hawalas) montre leur impact important sur le plan macroéconomique ; elle suggère la prise en compte de la spécificité et de l’utilité de ces institutions comme un dispositif complémentaire aux banques dont l’intégration dans le système financier formel devrait être facilitée. / This research seeks to detect the institutional and regulatory constraints that limit the development of informal units in Djibouti by both the macroeconomic and microeconomic analysis. The review shows that institutional habits (corruption, going right) in regulation created transaction costs and force small businesses to take refuge in the informal sector. A regression model shows that the quality of justice (as measured by this indicator of Rule of Law of the World Bank) is a determining variable in explaining the weight of the non-observed economy and hence the informal sector in GDP official. The dynamics of micro-enterprises is approached from 2 surveys (2001 and 2005) on the same sample. The analysis of mobility through transition matrices reveals the existence of three thresholds (1 employee, 2-5 employees, 6-9 employees and 10 employees and more) and not only one single threshold, albeit it confirms the thesis of «missing-middle». The discriminating factor analysis indicates that the law is a crucial variable that explains the apparent blocking of micro-enterprises beyond 6 to 9 employees. Finally, the 2007 survey on the money transfer activities (hawalas) shows that these institutions have a significant impact on the macroeconomic level and suggests that their usefulness and specificity should be taken into account in order to integrate this banking device within the formal financial system.

La microfinance, dont l’un des objectifs est de combattre la pauvreté, consiste en la fourniture de produits financiers à tous ceux qui sont exclus du système bancaire classique. Elle est née dans les années 1970, s’est diffusée dans les pays du Sud et s’est révélée être, en quelques décennies, un vecteur de développement. Cette thèse met en évidence ses limites et ses dérives, sans nier certains de ses succès. Au Tchad, dans certains cas, elle a produit des effets pervers et a conduit à l’endettement. L’étude menée répond à un travail de terrain pluridisciplinaire, conjuguant des approches financières et socio-culturelles. Les données recueillies proviennent de nos méthodes et techniques mises en place au cours de diverses enquêtes menées à N’Djaména et à Moundou entre janvier 2009 et mars 2012. Notre recherche a montré, entre autres, comment et à quel niveau se situe l’intervention de la microfinance auprès des populations défavorisées. Dans cette optique, nous avons analysé les obstacles rencontrés et précisé les conditions requises pour que ce type d’outil puisse être efficace, le secteur informel ainsi que l’économie sociale et solidaire étant susceptibles – en tant qu’outils de lutte contre l’exclusion – de rétablir le lien social / Microfinance, which one of the objectives is combating poverty, is the provision of financial products to all people who are excluded from the traditional. It emerged in the 1970s, spread in the countries of the South and proved to be, in a few decades, an instrument of development. This dissertation highlights his limits and his drawbacks, without denying some of its success. In Chad, in some cases, it has produced perverse effects and led to debt. This study is a pluridisciplinary field work, which aligns financial and socio-cultural approaches. Our research has shown, among others, how and at what level is situated the intervention of microfinance to the poor. In that process, we analyzed the obstacles and specified the conditions required so that this type of tool could be effective, the informal sector and social solidarity and economy etc. restore the social ties as they are effective for combating exclusion

Les études sur le secteur informel à Madagascar sont nombreuses et souvent à caractèretrès économique. Celle que nous proposons essaie d’apporter un regard socio-anthropologique surun phénomène complexe qui ne peut se réduire au seul domaine productif. Après avoir délimité lecadrage théorique et méthodologique du sujet, nous nous focalisons davantage sur les spécificitésdes activités de subsistance des Malgaches en ce qu’elles se basent sur le symbolique et lanégociation. Nous présentons ensuite notre zone d’investigation, « le pays des rochers » (RégionAmoron’i Mania), à partir duquel nous avons étayé quatre types idéaux de l’informalité, susceptiblesd’être généralisés à d’autres pays. Celle-ci demeure corrélée au système de parenté et se trouveinextricablement enchevêtrée avec le formel. Contrairement à certaines idées reçues, lamondialisation n’a fait qu’accroître cette imbrication. Nous terminons par une partie critique etprospective où nous évoquons les tentatives de l’État, sinon de réguler, du moins d’engager desprocessus de régularisation de ce secteur. Nous montrons que ce processus reste difficile pourplusieurs raisons, en particulier la corruption, l’affaiblissement de la sphère publique et les crisespolitiques cycliques / Studies on the informal sector in Madagascar are numerous and often based on itseconomic aspects. However, what we propose tries to bring a socio-anthropological perspective on acomplex phenomenon that can not be reduced to purely economic point of view. After defining thetheoretical frame of the subject, we focus more on the specifics of the subsistence activities ofMalagasy people, which are characterized by symbols and negotiation. Then, we present our studyzone, « the rocks area » or Amoron’i Mania region where we have listed four ideal types ofinformality which can become standard in other countries. In addition, informal is stronglyassociated with the parental system and particularly muddled with the formal sector. Contrary towhat one may think, globalization has accentuated this interweaving. At last, we proceed on criticaland prospective points of view, principally on the State’s attempts to regulate this sector. Thisprocess is still difficult because of corruption, the weakening of the Malagasy State and the politicalcrisis

Cette thèse met en exergue des recommandations sur le rôle des politiques de gouvernance, structurelles et fiscales pour atteindre une croissance pro-pauvre et inclusive. Le premier chapitre qui est introductif, présente le contexte de la thèse et discute brièvement les principaux problèmes de données ainsi que les faits stylisés sur l’inégalité et la pauvreté. Le deuxième chapitre analyse les effets de la bonne gouvernance sur la croissance pro-pauvre et inclusive au niveau macroéconomique. Il montre que tous les indicateurs de la gouvernance impactent positivement la croissance des revenus et la réduction de la pauvreté tandis que seuls deux indicateurs : l’efficacité du gouvernement et la règle de droit favorisent une croissance inclusive. Le troisième chapitre analyse comment les gouvernements peuvent réduire les inégalités de revenu en ajustant la composition des dépenses publiques tout en gardant le niveau total inchangé. Les résultats montrent que réallouer les dépenses de défense vers les dépenses d’éducation et de santé et en particulier les dépenses sociales et d’infrastructure, est associé à une réduction des inégalités dans les pays avec une stabilité politique. Le quatrième chapitre fournit une perspective micro-économique, en étudiant comment une meilleure performance des firmes dans le secteur informel peut promouvoir la prospérité partagée dans un contexte de fragilité. Ce chapitre montre que la performance des firmes est un facteur clé expliquant les différences de revenus entre les entrepreneurs. En outre, les résultats montrent que le capital humain et les compétences managériales sont des déterminants importants de la performance des firmes informelles. / This dissertation provides some evidence-based policy lessons focusing on the role of institutional, structural, and fiscal policies in achieving pro-poor and inclusive growth. The first chapter gives an overview of the dissertation and briefly discusses the main data issues and some stylized facts on inequality and poverty. The second chapter examines the role of good governance in fostering pro-poor and inclusive growth at the macroeconomic level. It shows that while all features of good governance enhance pro-poor growth, only government effectiveness and the rule of law tend to promote inclusive growth. The third chapter provides a cross-country analysis investigating how governments can reduce income inequality by changing the composition of public spending while keeping the total level fixed. The results show that reallocating defense spending towards education, and health spending and in particular social and infrastructure spending, is associated with reduced income inequality in countries with political stability. The fourth chapter provides a microeconomic perspective, focusing on how better performance of informal firms could promote shared prosperity in a context of fragility. It shows that firms’ performance is a key factor in explaining income differences between entrepreneurs. In addition, the chapter finds that human capital and managerial skills are important engines of informal firms’ performance.

African immigrants in contemporary South Africa can be perceived as a problem – the threatening other. Based on a case study of the Johannesburg inner city, this thesis aims to deconstruct this notion. It does so by investigating the nature and types and contribution of African immigrant traders` businesses to the Johannesburg inner city. In deconstructing the perception that African immigrants are the threatening other, and being infinitely aware that perception issues and the experiential realities hospitable to its centred on the human subject, this case study adopted a humanist geographic and critical realist approach by deploying a qualitative in-depth interview technique of both African immigrant and South African traders. This thesis suggests three important outcomes. The first is that: to view all African immigrants as the threatening other is too simplistic an assessment of an otherwise complex and dynamic set of relationships and interrelationships amongst and between African immigrant and South African traders. Second, some African immigrant traders do make a meaningful contribution to the Johannesburg inner city, whereas others do not. Third, the activities of African immigrant traders that may be considered as a threat by a section of the population are treated as a benefit by another. These nuanced insights and findings in this study not only render any analysis that projects all African immigrants negatively as an incomplete appraisal, but also suggest that it can never be correct to view them as such without capturing the dynamics that this work suggests. Such a finding not only challenges distorted and partial reporting by the media and also questions policies, which may be built on the wrong assumption that all African immigrants are a problem, but also extends the study of migration related issues in a South African context. / Geography / D. Litt. et. Phil. (Geography)

M. Tech. Entrepreneurship / This study aims to gain an understanding of how the City of Tshwane assist and manage informal trading in the city and to understand perceptions of the City of Tshwane about the effectiveness of the municipal bi-laws to find out if the bi-laws are achieving their intended goals. It also looks at the requirements of the informal traders within the City Tshwane.