D.Com.(Economics) / One of the current most topical aspects of economic activity in South Africa is the growth of the informal sector. In addition, with deregulation becoming a hallmark of government economic policy, local authorities have become increasingly aware of the growth of the informal sector. The aim of this study is to investigate the nature and extent of informal sector activities in the Johannesburg municipal area by means of a questionnaire method of research. After a study of the numerous definitions concerning the informal sector, it was decided that for the purpose of this thesis, the informal sector be defined as: Those businesses that do not conform to a diversity of legal requirements, while the market and price mechanisms determine the production, distribution, and consumption of goods and services. In Johannesburg, it was observed that the formal sector's inability to create sufficient employment opportunities for all its citizens led to increasing numbers of people becoming involved in the informal sector. As far as the nature of the informal sector is concerned, the survey carried out during August 1991 revealed that diverse types of economic activities are being carried out. The main activities of the informal sector in Johannesburg were found to be: (i) production (such as "furniture makers" and "knitters"); (ii) accommodation (such as sub-letting of land/property or premises); (iii) building construction (such as building contractors and plasterers); (rv) repair services (such as motor repairs, panel beaters and home appliance repairs); (v) retail distribution (such as food vendors and hawkers of fresh produce); (vi) transport (such as the transport of goods and passengers); and (vii) personal services (such as hairdressers and photographers). The most important activity was found to be retail distribution. Disproportionately more male than female entrepreneurs were involved in this sector. Most entrepreneurs were between the ages of 31 and 40 years. These entrepreneurs work long hours and frequently have to provide their services for seven days a week. Most of the undertakings were operated solely by the informal sector entrepreneur, and employees were only employed in exceptional cases. Informal sector entrepreneurs experienced great problems in obtaining finance and licences. Other problems included access to water and electricity. A unique method was developed in order to determine the extent of informal sector activities in Johannesburg. In applying this method it was found that 15,20 percent of the total number of unemployed households in Johannesburg participated in informal sector activities. Having taken account of the findings of the survey conducted in August 1991, the informal sector has an important role to play in the future, especially as an avenue for the employment of those who cannot be accommodated in the formal sector. The greatest challenge facing the Johannesburg City Council is to introduce development measures such as financial assistance, the provision of infrastructure, establishing a development fund, deregulation and training programmes in order to stimulate the expansion of informal sector activities without detrimentally affecting the formal sector activities. Africa is the growth of the informal sector. In addition, with deregulation becoming a hallmark of government economic policy, local authorities have become increasingly aware of the growth of the informal sector. The aim of this study is to investigate the nature and extent of informal sector activities in the Johannesburg municipal area by means of a questionnaire method of research. After a study of the numerous definitions concerning the informal sector, it was decided that for the purpose of this thesis, the informal sector be defined as: Those businesses that do not conform to a diversity of legal requirements, while the market and price mechanisms determine the production, distribution, and consumption of goods and services. In Johannesburg, it was observed that the formal sector's inability to create sufficient employment opportunities for all its citizens led to increasing numbers of people becoming involved in the informal sector. As far as the nature of the informal sector is concerned, the survey carried out during August 1991 revealed that diverse types of economic activities are being carried out. The main activities of the informal sector in Johannesburg were found to be: (i) production (such as "furniture makers" and "knitters"); (ii) accommodation (such as sub-letting of land/property or premises); (iii) building construction (such as building contractors and plasterers); (iv) repair services (such as motor repairs, panel beaters and home appliance repairs); (v) retail distribution (such as food vendors and hawkers of fresh produce); (vi) transport (such as the transport of goods and passengers); and (vii) personal services (such as hairdressers and photographers). The most important activity was found to be retail distribution. Disproportionately more male than female entrepreneurs were involved in this sector. Most entrepreneurs were between the ages of 31 and 40 years. These entrepreneurs work long hours and frequently have to provide their services for seven days a week. Most of the undertakings were operated solely by the informal sector entrepreneur, and employees were only employed in exceptional cases. Informal sector entrepreneurs experienced great problems in obtaining finance and licences. Other problems included access to water and electricity. A unique method was developed in order to determine the extent of informal sector activities in Johannesburg. In applying this method it was found that 15,20 percent of the total number of unemployed households in Johannesburg participated in informal sector activities. Having taken account of the findings of the survey conducted in August 1991, the informal sector has an important role to play in the future, especially as an avenue for the employment of those who cannot be accommodated in the formal sector. The greatest challenge facing the Johannesburg City Council is to introduce development measures such as financial assistance, the provision of infrastructure, establishing a development fund, deregulation and training programmes in order to stimulate the expansion of informal sector activities without detrimentally affecting the formal sector activities.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:4492 |
| Date | 26 March 2014 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Johannesburg |
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