Location and classification of informal traders in Drakenstein Municipality

Thesis (MPhil)--Stellenbosch University 2018.

ENGLISH ABSTRACT: Informal traders and informal business owners are considered a fundamental part of the local economy. The inability of local government and the urban formal sector to provide sustainable employment opportunities are highlighted as one of the main reasons for the increase of informal traders and informal businesses in small cities. Choosing the location for informal traders and informal business owners and the products they sell, reflect the nature of the current economic climate. Informal traders are a reflection of urban economies and the result of a dualistic business setting. The contribution of informal business owners to the local economy has received relatively little attention from stakeholders such as local government and the formal sector, yet informal traders and informal business owners play an important role in job creation for millions of South Africans. The aim of the study is to determine the location of informal businesses in the intermediate-sized cities of Paarl and Wellington and classify the goods and services that are on offer in these businesses. The results conclude that the informal business sector plays a significant role in stimulating local economic growth. The geographical patterns and an economic sector classification model were used for the analysis with the purpose of making planning recommendations that will advance and improve the informal sector.

AFRIKAANSE OPSOMMING: Informele handelaars en informele besigheids eienaars word beskou as ‘n fundamentele deel van die plaaslike ekonomie. Die onvermoë van plaaslike regering en die formele sektor om volhoubare werksgeleenthede te skep word as die hoofrede vir die toename in informele handelaars en besighede in klein stede beskou. Die keuse vir die ligging van informele handelaars en die produkte wat hulle verkoop reflekteer die aard van die huidige ekonomiese klimaat. Informele handelaars is ‘n refleksie van stedelike ekonomieë en die resultaat van ‘n dualistiese besigheids omgewing. Die bydra van informele besigheids eienaars aan die plaaslike ekonomie kry baie min aandag van belanghebbendes soos plaaslike regering en die formele sektor. Nogtans, speel informele handelaars ‘n groot rol in werkskepping vir mijoene Suid-Afrikaners. Die doel van die studie was om die ligging van informele besighede vas te stel, in die intermediêre stede van Paarl en Wellington en om die goedere en dienste wat hulle aanbied te klassifiseer. Vanuit die resultate kan ons aflei dat die informele besigheids sektor ‘n beduidende rol speel in die stimulering van plaaslike ekonomiese groei. Die geografiese patrone en ‘n ekonomiese sektor klassifikasie model was gebruik vir die analise met die doel om beplannings aanbevelings te maak, wat die informele sektor sal verbeter.

Masters