Assessment of the viability and potential of township economies for municipalities
| dc.date.accessioned | 2024-04-25T09:36:37Z | |
| dc.date.available | 2024-04-25T09:36:37Z | |
| dc.date.issued | 2020 | |
| dc.description.abstract | This research study was commissioned by the Local Government Sector Education and Training Authority (LGSETA). The objectives of this study was twofold; (i) to examine the potential of unlocking township economies with a view to help address the crucial socio-economic conditions facing municipalities namely, high levels of unemployment, poverty and inequality and (ii) to identify the skills gaps that can propel the township economy (the researches opted to include the possible skills gaps in both township entrepreneurs and local economic development officials in municipalities) and finally to develop a concept document with a focus on local, regional and international perspectives. From the literature review it is clear that although the policy regime is intact, this is compromised by the poor implementation of local economic development (LED) policies together with a lack of leadership and political will. The socio-economic impact of LED has not addressed the triple challenge of poverty, inequality, and unemployment. This study examined the lived experience of more than 1000 township entrepreneurs. It found that the majority of township entrepreneurs regard business as both a steppingstone to something better and a means of survival during tough economic times. They are in business to make a living and to offer a service to the community. This speaks to the drive for social innovation. Thus, people are not just in business to make money, but genuinely sees this as an opportunity to meet a need in society. Thus, it is not surprising that the majority of interviewed entrepreneurs established themselves in the retail and services sector. The study found that local entrepreneurs need support to identify new opportunities and to acquire skills that will enable them to better market their goods and manage their finances. The needs in support and skills include the following: the development and improvement of effective communication structures to facilitate effective communication between municipalities and township entrepreneurs; ; municipalities to take up a facilitation role in in setting uplinks/partnerships between informal traders and formal business; the better management of the safety and security of township entrepreneurs; more infrastructure support and the allocation of more space for trading speaking to the critical role that local government should play in creating an enabling environment to propel the township economy; more financial support from the municipality. Although training is the most commonly used intervention by local government, the research found this to be the least effective. Participants requested that the format of training is re-designed to include more on the job training as opposed to the typical classroom format of training. Finally, the majority of the research participants experienced the municipality as absent rather than supportive in their entrepreneurial endeavours. Pertaining to the competence levels of LED officials, the study found an urgent need in developing a hands-on capacity building program for municipal LED officials. Such a training programme should focus on managing township economies, policy development, LED planning and implementation, research, and promotion, and promoting industrial and business development. | |
| dc.identifier.uri | https://cdn.lgseta.co.za/resources/research_and_reports/2019%20–%202020%20RESEARCH%20PROJECTS/RESEARCH%20REPORT%20-%20TOWNSHIP%20ECONOMY.pdf | |
| dc.identifier.uri | http://lhg.cput.ac.za//handle/123456789/295 | |
| dc.language.iso | en | |
| dc.publisher | Local Government Sector Education and Training Authority (LGSETA) | |
| dc.subject | Informal sector (Economics) | |
| dc.subject | Entrepreneurship | |
| dc.subject | Squatter settlements --Economic development | |
| dc.subject | Small business | |
| dc.subject | Home-based businesses | |
| dc.title | Assessment of the viability and potential of township economies for municipalities | |
| dc.type | Technical Report |