Abstract
M.Com. (Economics)
The motivation for this study has its origin in the
observation that informal sector activities in South Africa
had increased significantly since the nineteen-eighties. The
initial interest was stimulated by the desire to discover
more about the nature and extent of the informal sector, as
well as the effects it is having on employment, income
generation, policy making and general economic equilibrium.
Investigating the occurrence of informal sector activities in
the developed countries, the centrally directed economies and
the Third World countries led to the conclusion that the
different definitions for informal sector activities, the
nature of such activities and the reasons why people become
involved in such activities, differ from country to country.
In South Africa it was observed that the formal sector's
inability to create sufficient employment opportunities for
all its citizens led to more and more people joining the
informal sector. As far as the nature of the informal sector
is concerned it was found that a variety of economic
activities are being carried out, the most important being
trade and hawking. The highest concentration of participants
were found in the Natal/KwaZulu area. Marginally more male
than female participants were involved in this sector. Most
participants were younger than 40 years of age. Participants
worked long hours and frequently have to provide a service
for seven days a week. Most undertakings were operated
solely by the participant or with the assistance of family
members, employees are only employed in exceptional cases.
participants experienced great problems in obtaining finance
and appropriate accommodation. Little research had been done
so far to identify and quantify the involvement of Whites in
the informal sector...