The role of informal trading in economic development : the case study of Mtubatuba.
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Date
2015
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Abstract
This study assessed the role of informal trading in the economic development of small towns in
KwaZulu-Natal’s local municipalities using the case study of Mtubatuba. The following
objectives were crucial in reaching this aim; to assess the contribution of informal trading to the
livelihoods of traders, to assess the role of informal trade in employment, to examine the
relationship that exists between traders and local authorities and to examine the relationship
between informal traders and formal businesses. The study used a mixed methods approach in
order to obtain information from informal traders and municipal officials.
In recent years, small towns in South Africa have become important hubs for service delivery
and the economic activity involved in the receipt and processing of produce (Donaldson and
Marais, 2012). As such these towns are viewed as critical to the implementation of the goals of
South Africa’s developmental local government. In relation to this view, from a theoretical
perspective, the established strand relates to the small town growth and development potential
with the core theme of local economic development.
In Mtubatuba informal trading has become an economic alternative for some community
members. Informal trading is further supplemented by tourism as Mtubatuba is a tourism
gateway to Ismangaliso Wetlands Park and Hluhluwe Umfolozi Game Reserve. The motivation
for the study was thus to understand the role of informal trading in the economic development of
small towns. In order to ensure optimal efficiency of informal businesses there is a need to
understand the needs of informal traders and the contributions made by the informal sector in
their lives. There is tremendous potential within the informal business sector for it to become a
major role player in sustaining the livelihoods of many people, but the efficiency of these
informal businesses needs to be improved by removing some of the constraints which hinder
their functioning. These constraints include crime, transport, municipal service and abuse.
This research therefore assesses the role played by informal trading in the economic
development of small towns. In addition, the findings will be useful for local municipalities
within small towns to fully comprehend the views of municipal officials and informal traders
with regards to policies and practices, as well as their impact on enabling the development of
small towns through the informal economy. Lastly, the research findings will enrich the
knowledge base on informal trading in small towns and may be useful input into the
development of a more sustainable regulatory approach to informal trading in small towns.
Description
Master of Commerce in Leadership Studies. University of KwaZulu-Natal, Westville 2015.
Keywords
Informal sector (Economics)--South Africa--Mtubatuba., Community development--South Africa--Mtubatuba., Mtubatuba (South Africa)--Economic conditions., Theses--Business administration., Informal trading.