THE VIABILITY OF INFORMAL MICROENTERPRISE IN SOUTH AFRICA

Douglas Woodward (), Robert Rolfe (), André Ligthelm () and Paulo Guimaraes
Additional contact information
Robert Rolfe: Darla Moore School of Business, University of South Carolina, Columbia, SC 29208, USA
André Ligthelm: Bureau of Market Research, University of South Africa, PO Box 392 UNISA 0003, South Africa

Journal of Developmental Entrepreneurship (JDE), 2011, vol. 16, issue 01, 65-86

Abstract: This paper analyzes entrepreneurs in South Africa's informal sector. The aim is to determine the extent to which African informal retail trade spawns viable enterprises. To assess the prospects for South Africa's informal retail sector, we obtained questionnaires from owners of small-scale establishments in a random sample taken throughout the country in 2007. Owner's income and sales data provided a basis for investigating viability. Regression analysis tests hypotheses identified as crucial to higher income and sales, including startup capital, size, male/female ownership, business training and the proximity to shopping centers. Also tested is the influence of urbanization externalities on sales and owner's income. Initial capital and positive urban externalities have a strong influence on the ability to generate a sustainable livelihood for informal entrepreneurs. After controlling for startup capital, location and other factors, it appears women entrepreneurs face distinct difficulties in generating a viable income through informal retail trade.

Keywords: Informal sector; entrepreneurship; regional development; Africa (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1084946711001719
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jdexxx:v:16:y:2011:i:01:n:s1084946711001719

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1084946711001719

Access Statistics for this article

Journal of Developmental Entrepreneurship (JDE) is currently edited by Peter Koveos

More articles in Journal of Developmental Entrepreneurship (JDE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().