Enhancing the prospects of small scale and informal retailers in fresh produce value chains : an examination of the developmental impact of public sector market facilities on formal and informal retailers in selected KwaZulu-Natal markets.
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Date
2008
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Abstract
The aim of the research was to identify the constraints that restrict the development of informal
and small formal retailers, and highlight potential opportunities that may assist in strengthening
their position within the value chain. It explored the functioning of two municipal-managed
static fresh produce markets in KwaZulu-Natal: Durban and Pietermaritzburg.
The investigation revealed that informal and small formal retailers have relatively little impact on
the fresh produce value chain and that the structure of static markets is not conducive to these
groups because of their lack of capital and inability to buy produce in bulk. Predominant
constraints to their economic growth include high cost of transport, high prices of produce and
competition with other traders. In addition, police harassment was identified in Durban as one of
the dominant constraints, but was not reflected in Pietermaritzburg.
However, opportunities for small and informal retailers to strengthen their position were
identified as increasing the market access for retailers, through the provision of transport,
informal training workshops, cold storage facilities in the city, the formation of cooperatives and
access to micro-credit.
This research argues that attention must be given to enhancing the interests and role of small and
informal retailers in governance and operational processes within fresh produce markets. The
necessity of the development of social networks (also argued by Meagher 1995) is a critical
factor in determining the success of informal and micro enterprises and could contribute to
institutional reforms that help address the information and access asymmetries in the fresh
produce market environment.
Following the completion of this dissertation, it was distributed along with the appended log
frames to the management at the Durban and Pietermaritzburg, market agents and informal
retailer groups that participated. It will also be disseminated through the Learning, Monitoring
and Research Facility, who funded part of the research, and is hoped that the information will aid informal retailers and empower those that were involved.
Description
Thesis (M.A.)-University of KwaZulu-Natal, 2008.
Keywords
Informal sector (Economics)--South Africa., Small business--South Africa., Theses--Development studies.