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Could Informal Enterprises Stimulate Township Economies?

A Study of Two Midrand Townships

Article image

Eddie Rakabe

28 February 2017

English

Township Studies Librarian Two

Report

Township Studies Group

Africa

Informal enterprises are perceived to lack the necessary business and economic fundamentals to stimulate their local economies. However, informal enterprises are not homogenous. In a study of non-retail informal enterprises, the authors distinguish between Traditional Informal Enterprises (TIEs) and Modernising Informal Enterprises (MIEs) and assess whether Ivory Park and Kaalfontein townships have MIEs to catalyse the local economies. We find that 40% of the non-retail enterprises have a modernising orientation, but that the majority are predominantly traditional.

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Built environment

Economic development

Economics

Human settlements

Informal sector

Livelihoods

Local economic development

South Africa

Township Studies Group

Township economies

Urban

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