Record Details

Employment growth constraints of informal enterprises in Diepsloot, Johannesburg

Acta Commercii

Field Value
Title Employment growth constraints of informal enterprises in Diepsloot, Johannesburg
Creator Ledingoane, Christina M. Viljoen, Jacoba M.M.
Subject Economics Informal economy; township; SMMEs; employment growth; informal enterprises; growth constraint
Description Orientation: Informal enterprises in South Africa’s townships play an important role in employment creation and social protection. While some informal enterprises in inner cities grow, those in townships experience stagnant growth.Research purpose: The aim was to identify and analyse the internal and external growth constraints, regarding employment growth, of informal enterprises in Diepsloot, Soweto.Motivation for the study: Knowledge of internal and external growth constraints can inform policymakers on aspects that needs attention in assisting informal enterprises to realise their growth potential.Research design, approach and method: A quantitative research approach was followed. Primary data were collected from 300 informal enterprises using a convenience sampling technique and structured questionnaire. Descriptive statistics, a matrix analysis and logistic regression models were used to analyse the dataMain findings: The statistically significant growth constraints faced by informal enterprises in Diepsloot are external constraints over which the owner or manager has no control. Local authorities have an important role to play in the growth of informal enterprises.Practical/managerial implications: Managers need skills and training to manage the external growth constraints. Local authorities should also provide proper infrastructure, public services and increased security. An alternative source of funding, with the ease of access of micro-lender financing but at the rates of commercial bank lending, should be investigated.Contribution/value-add: This study focuses on the growth constraints of informal enterprises in a township offering a wide range of goods and services. The increase in the number of employees is used as the measure for the enterprises’ growth.
Publisher AOSIS
Contributor UJ Postgraduate Supervisor-Linked Bursary (SLB)
Date 2020-06-18
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Survey/Interview
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/ac.v20i1.827
Source Acta Commercii; Vol 20, No 1 (2020); 15 pages 1684-1999 2413-1903
Language eng
Coverage Diepsloot, Johannesburg, South Africa Growth constraints Informal enterprises
Rights Copyright (c) 2020 Christina M. Ledingoane, Jacoba M.M. Viljoen