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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 of
other developing countries as measured over the years by the Global Entrepreneurship
Monitor (GEM) research. Entrepreneurship and small business are well recognised for their
role in both economic growth and job creation. This study set out to investigate the informal
sector entrepreneurial activity in Emfuleni Local Municipality which has experienced large
scale retrenchments over the past decade. A literature survey was conducted to understand
the characteristics, successful practices and weaknesses that distinguish the informal sector
from the formal sector.
The empirical study which was conducted by means of survey questionnaire among the
informal sector entrepreneurs indicated that entrepreneurship in the informal sector can
provide a form of income for some people that cannot be absorbed in the formal labour
market. The findings of the study was that this area of entrepreneurship is dominated by the
youth as more than half of the respondents were below the age of 35 years. It was also
found that most of the entrepreneurs have never been formally employed which may be
problematic when it comes to skills. While most of them recognised the importance of
training and skills, they were also positive that they can benefit from training especially in the
area of marketing and promoting their product and services.
These entrepreneurs however do not seem to be benefiting from government initiatives such
as the workshops offered by the local municipality and other assistance offered by the
government agencies. The low skills level of most of these entrepreneurs may also hinder
their ability to grow their businesses beyond the oneā€“man operations. It is recommended
therefore that the organisations such as the National Youth Development Agency double
their efforts in helping the youth to become successful small business owners. The
government agencies, particularly those targeting the youth should make a conceited effort
to provide training in particular to these people if they are to make a lasting impact on job
creation. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/4579
Date January 2010
CreatorsMakhoba, Xolani Simphiwe
PublisherNorth-West University
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis

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