1. The township (informal) economy: an area level perspective.
Summit on Informality and Inclusive Growth Fedesarrollo / DPRU ELLA Programme 4-5th October 2016
The township (informal) economy: an area level perspective.
Andrew Charman
Sustainable Livelihoods Foundation

2. A township (informal) economy is emerging.
key messages ….
A township (informal) economy is emerging.
Entrepreneurship is embraced as a means of survival, employment and wealth accumulation.
Fluidity between survival, induced and voluntary informality.
Most people start in business on their own initiative.
Micro-enterprises survive and grow (to a point).
There is an entrepreneurship ‘problem:
Amplification of businesses is hindered by recourse constraints, entrepreneurial outlook and structural impediments.
Misguided policies (and regulation) hamper enterprise development and growth.

3. 9 townships in 4 provinces.
our research …
Scope
Outcomes
5 Years.
9 townships in 4 provinces.
Delft South comparative analysis (2010 vs 2015).
Map series for each site.
Amalgamated Dataset.
Academic papers and blogs.
Infographics.
Spatial studies into market dynamics.
Infrastructure design concepts.

4. research approach…

5. micro-enterprises and their spatial distribution
Financial exclusion (1ATM).
No council markets.
Transport central to economic inclusion.

6. different spatial logics…

7. land dynamics and challenges …

8. Participation in township economy growing. Large diversity.
our findings…
Size and Scope
Core obstacles
Participation in township economy growing.
Large diversity.
Spatial influences in enterprise distribution / activities.
Food and drink sector top.
Gaps in the market.
Crime.
Street trade restrictions.
Land access / use rights constraints.
Price competition.
Police harassment.
Licensing restrictions.

9. Delft South 2010 vs 2015

10. 10,842 micro-enterprise activities. 9,956 micro-entrepreneurs.
numbers
10,842 micro-enterprise activities.
9,956 micro-entrepreneurs.
36 per 1,000 people (IP = 55; DS = 21).
Top 5
House shops (16%)
Shebeens (14%)
Spaza shops (11%)
Street traders (7%)
Take-aways (6%) / Hair care (6%)
Food and Drink = 54%.
Services = 34%.
Micro-manufacturing = 2%.

11. Land rights, zoning and access for commercial use.
policy priorities 1/ …
Land rights, zoning and access for commercial use.
High streets designated as special zones and provided with a business oriented infrastructure and facilities.
Street layout is NB.
Broad concessions for street trade and mobile trade.
Regulatory barriers minimized to facilitate formalization (through a developmental approach). Specific targets include sectors with high growth potential and sizeable benefits from voluntary informality.
spaza shops, shebeens / taverns, transport and service businesses.

12. Enhance business use of ICT through free data / wi-fi hotspots.
policy priorities 2/…
Influence the role and function of shopping malls / large retail developments:
Mandatory restrictions to accommodate different sizes of businesses, including survivalists.
Integrate social and community resources (sports facilities; libraries).
Transport sector should be recognized as ‘gateway’ to small-business development:
Upscale taxi sector to achieve BRT objectives.
Formalise (and legitimize) informal taxi operators.
Enhance business use of ICT through free data / wi-fi hotspots.
Avoid unsustainable business approaches (such as incentives for cooperatives).

13. Thank you For further info: www.livelihoods.org.za