The prospects for informal small businesses in KwaMashu

Abstract

Government and business interest in the informal sector has been aroused by the sector's perceived ability to provide employment and thus lessen the politically destabilizing effects of unemployment. In the light of research carried out in a black township near Durban, the possible effects of deregulation on the development of the informal sector are examined. It is suggested that, since the sector's principal role was found to be to supplement an often meagre formal sector wage and there were few opportunities for capital accumulation, deregulation alone would be insufficient to promote growth of the sector.

Notes

Development Studies Unit, University of Natal.