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Papers by Sally Ann Peberdy
International Development Research Centre (IDRC) for funding the project and this publication. Th... more International Development Research Centre (IDRC) for funding the project and this publication. The survey of 928 international and South African migrant informal businesses in Johannesburg was funded by the IDRC and the Gauteng City-Region Observatory.
There is increasing interest at national, provincial and municipal government levels in developin... more There is increasing interest at national, provincial and municipal government levels in developing township economies, small, medium and micro enterprises (SMMEs) and the informal sector. In the past two years, national government, through the Department of Trade and Industry (the dti), has instituted a panel to investigate the possibilities and problems of the informal sector and consequently finalised its policy on the sector. 1 In 2014 it established a Ministry of Small Business Development. The new Ministry has set an ambitious target to increase the contribution of SMMEs to the national gross domestic product (GDP) from its current contribution of around 35% to between 60% and 80%. 2 It seems the focus of this initiative will be on businesses in the formal, not the informal, sector. In his State of the Province Address, the Premier of Gauteng emphasised the need to develop township economies where many informal enterprises are based and where many informal sector employees live and work. 3 When identifying "interventions" to "change the structure of the economy", the premier said the provincial government was "determined to revitalise and mainstream the township economy by supporting the development of township enterprises, cooperatives and SMMEs that produce goods and services that meet the needs of township residents". 4 At municipal levels, the cities of Johannesburg and Tshwane have been revisiting their policies on the informal sector and street trading. This paper draws on data gathered on informal entrepreneurship and the use of and attitudes to the informal sector, as well as on informal employment in the Gauteng City-Region Observatory (GCRO) Quality of Life (QoL) III survey undertaken in 2013. The survey interviewed 27,494 residents of Gauteng. Respondents were interviewed where they lived and not where they worked, although this could be the same place in some instances. In the survey, an informal sector business was defined as one with fewer than five employees and which was not registered for value-added tax (VAT) or income tax. The survey shows the importance of the informal sector to the entrepreneurial economy of the province. Of the 11% of respondents in the QoL III survey who owned their own business, 65% operated in the informal sector. Although there were limits on the number of questions that the survey could ask in relation to informal sector enterprises and entrepreneurs, it provides valuable information on the extent of informal sector business ownership in the province, the types of businesses being engaged in, use of the informal sector and attitudes to street trading. 5 The survey also provides information about informal employment, including people who are employed informally, the sectors where they work and their working conditions. It has been possible in many cases to disaggregate the data on informal sector entrepreneurship and employment to identify differences between
... of small, medium-sized and micro-enterprises' and suggests they represent an'import... more ... of small, medium-sized and micro-enterprises' and suggests they represent an'important vehicle to address the challenges of job creation, economic growth and ... While the legislation and policy encourage South African-owned business, and their impact on SMME growth is ...
Map of the Month, Feb 27, 2017
Map of the Month, Sep 30, 2015
Journal für Entwicklungspolitik, 2013
Myth: Foreign migrants are flooding to South Africa to flee a desperate situation at home. Some 2... more Myth: Foreign migrants are flooding to South Africa to flee a desperate situation at home. Some 27% of the sample cite as the reason for coming to South Africa the opportunities offered by South Africa's tourist market; 24% cited the strength of the economy or the rand; some 17% spoke more generally of South Africa's attractions. Myth: The presence of non-South African traders is a new phenomenon. Most non-SADC traders are recent entrants. However, most traders from the SADC region have been travelling to South Africa to trade since at least 1990, and some before. Myth: Non-South Africans want to settle permanently in South Africa. Some 71% of readers identified their home country as their "permanent home". Only 4% said "South Africa". The overwhelming majority of married respondents and those with children said they did not want to bring their families to South Africa. Myth: The participation of non-South Africans in South Africa's economy is a net drain on the country. Foreigners drain wealth, they do not create it. Cross-border traders invest the majority of their profits within the country in the (formal) retail and manufacturing sectors. Traders assist South African exports by taking goods out of South Africa to sell in the region. Over 56% of all non-South Africans, but 78% of SADC respondents, take goods out of South Africa to trade. Only 27% do not. Exported goods include electronics, appliances, clothes, shoes, household goods, and foodstuffs. These items are South African products which are being promoted by industrial and SADC export policy. Estimates of the value of goods taken out of the country range from R500 to R10 000 per trip. The majority take out goods valued between R2 000 and R3 000. Most traders returned home between four and eight times a year. Official South African policy is to encourage trade with its SADC partners. There is no sound economic reason why such trade should be monopolised by large South African formal sector companies. More than 50% of traders spend between 40% and 50% of their earnings in South Africa. Myth: Non-South African street traders compete unfairly with South Africans and take away economic opportunity. More than 20% of foreign traders employ South Africans in their business operations. Only 15% of traders did not bring goods with them to sell. Curios, wood and stone carvings comprise 90% of the goods imported. The remaining 10% consisted of wire, clothes and crochet work and leather goods. TRADING PLACES: CROSS-BORDER TRADERS AND THE SOUTH AFRICAN INFORMAL SECTOR This project is funded by the Canadian government through the Canadian International Development Agency (CIDA).
Map of the Month, Jul 31, 2017
International Development Research Centre (IDRC) for funding the project and this publication. Th... more International Development Research Centre (IDRC) for funding the project and this publication. The survey of 928 international and South African migrant informal businesses in Johannesburg was funded by the IDRC and the Gauteng City-Region Observatory.
There is increasing interest at national, provincial and municipal government levels in developin... more There is increasing interest at national, provincial and municipal government levels in developing township economies, small, medium and micro enterprises (SMMEs) and the informal sector. In the past two years, national government, through the Department of Trade and Industry (the dti), has instituted a panel to investigate the possibilities and problems of the informal sector and consequently finalised its policy on the sector. 1 In 2014 it established a Ministry of Small Business Development. The new Ministry has set an ambitious target to increase the contribution of SMMEs to the national gross domestic product (GDP) from its current contribution of around 35% to between 60% and 80%. 2 It seems the focus of this initiative will be on businesses in the formal, not the informal, sector. In his State of the Province Address, the Premier of Gauteng emphasised the need to develop township economies where many informal enterprises are based and where many informal sector employees live and work. 3 When identifying "interventions" to "change the structure of the economy", the premier said the provincial government was "determined to revitalise and mainstream the township economy by supporting the development of township enterprises, cooperatives and SMMEs that produce goods and services that meet the needs of township residents". 4 At municipal levels, the cities of Johannesburg and Tshwane have been revisiting their policies on the informal sector and street trading. This paper draws on data gathered on informal entrepreneurship and the use of and attitudes to the informal sector, as well as on informal employment in the Gauteng City-Region Observatory (GCRO) Quality of Life (QoL) III survey undertaken in 2013. The survey interviewed 27,494 residents of Gauteng. Respondents were interviewed where they lived and not where they worked, although this could be the same place in some instances. In the survey, an informal sector business was defined as one with fewer than five employees and which was not registered for value-added tax (VAT) or income tax. The survey shows the importance of the informal sector to the entrepreneurial economy of the province. Of the 11% of respondents in the QoL III survey who owned their own business, 65% operated in the informal sector. Although there were limits on the number of questions that the survey could ask in relation to informal sector enterprises and entrepreneurs, it provides valuable information on the extent of informal sector business ownership in the province, the types of businesses being engaged in, use of the informal sector and attitudes to street trading. 5 The survey also provides information about informal employment, including people who are employed informally, the sectors where they work and their working conditions. It has been possible in many cases to disaggregate the data on informal sector entrepreneurship and employment to identify differences between
... of small, medium-sized and micro-enterprises' and suggests they represent an'import... more ... of small, medium-sized and micro-enterprises' and suggests they represent an'important vehicle to address the challenges of job creation, economic growth and ... While the legislation and policy encourage South African-owned business, and their impact on SMME growth is ...
Map of the Month, Feb 27, 2017
Map of the Month, Sep 30, 2015
Journal für Entwicklungspolitik, 2013
Myth: Foreign migrants are flooding to South Africa to flee a desperate situation at home. Some 2... more Myth: Foreign migrants are flooding to South Africa to flee a desperate situation at home. Some 27% of the sample cite as the reason for coming to South Africa the opportunities offered by South Africa's tourist market; 24% cited the strength of the economy or the rand; some 17% spoke more generally of South Africa's attractions. Myth: The presence of non-South African traders is a new phenomenon. Most non-SADC traders are recent entrants. However, most traders from the SADC region have been travelling to South Africa to trade since at least 1990, and some before. Myth: Non-South Africans want to settle permanently in South Africa. Some 71% of readers identified their home country as their "permanent home". Only 4% said "South Africa". The overwhelming majority of married respondents and those with children said they did not want to bring their families to South Africa. Myth: The participation of non-South Africans in South Africa's economy is a net drain on the country. Foreigners drain wealth, they do not create it. Cross-border traders invest the majority of their profits within the country in the (formal) retail and manufacturing sectors. Traders assist South African exports by taking goods out of South Africa to sell in the region. Over 56% of all non-South Africans, but 78% of SADC respondents, take goods out of South Africa to trade. Only 27% do not. Exported goods include electronics, appliances, clothes, shoes, household goods, and foodstuffs. These items are South African products which are being promoted by industrial and SADC export policy. Estimates of the value of goods taken out of the country range from R500 to R10 000 per trip. The majority take out goods valued between R2 000 and R3 000. Most traders returned home between four and eight times a year. Official South African policy is to encourage trade with its SADC partners. There is no sound economic reason why such trade should be monopolised by large South African formal sector companies. More than 50% of traders spend between 40% and 50% of their earnings in South Africa. Myth: Non-South African street traders compete unfairly with South Africans and take away economic opportunity. More than 20% of foreign traders employ South Africans in their business operations. Only 15% of traders did not bring goods with them to sell. Curios, wood and stone carvings comprise 90% of the goods imported. The remaining 10% consisted of wire, clothes and crochet work and leather goods. TRADING PLACES: CROSS-BORDER TRADERS AND THE SOUTH AFRICAN INFORMAL SECTOR This project is funded by the Canadian government through the Canadian International Development Agency (CIDA).
Map of the Month, Jul 31, 2017