Informal retailing through home-based micro-enterprises: The role of spaza shops

Figures & data

Table 1: Taxonomy of types of informal economic activities

Type of activity	Monetary transactions		Non-monetary transactions
Illegal activities	Trade in stolen goods; drug dealing and manufacturing; prostitution; illegal gambling; smuggling and fraud		Barter of drugs, stolen goods, smuggling. Production of or growing drugs for own use. Theft for own use.
	Tax evasion	Tax avoidance	Tax evasion	Tax avoidance
Legal activities	Unreported income from self-employment; Wages, salaries and assets from unreported work related to legal services and goods	Employee discounts, fringe benefits	Barter of legal services and goods	All do-it-yourself work and neighbour help
Source: Schneider (2002:4).

Table 2: Relationship between retail sales and private consumption expenditure, 2002

	2002 (estimated)
	R million
1. Total private consumption expenditure (2 + 3)	686 517
2. Expenditure on services	286 457
3. Private consumption expenditure on goods	400 060
4. Private consumption expenditure on personal transport equipment and fuel and power	83 480
5. Potential retail sales (3–4)	316 581
6. Formal retail sales	206 680
7. Retail sales other than by formal retail outlets (5–6)	109 901
	per cent
8. Services as a percentage of consumption expenditure	41,7
9. Potential retail sales as a per cent of private consumption expenditure	46,1
10. Formal retail sales as a percentage of potential retail sales	65,3
11. Other than formal retail sales as a percentage of potential retail sales	34,7
Source: Tustin (2003:16).

Figure 1: Main sources of finance for starting informal businesses

Figure 2: Monthly turnover of spaza retailers, by income group

Table

• formal residential areas	:	R5 150
• informal residential areas	:	R4 400
• rural areas	:	R3 620

Table

product	per cent of spazas
• soft drinks	57,1
• cigarettes	55,9
• paraffin or candles	41,5
• maize meal	38,5
• alcoholic beverages	32,6
• bread	27,6
• sugar	20,9

Table 3: Average number of employees, by type of employment

Type	Full-time	Part-time	Total
Members of household	1,49	0,48	1,97
Non-members	0,37	0,12	0,49
Total	1,8	0,60	2,46

Table

	Average employment
• Formal residential areas	2,40
• Informal residential areas	2,37
• Rural areas	2,80

Figure 3: Type of support received from suppliers

Figure 4: Problems experienced by spaza owners

Schneider , F . 2002 . Size and measurement of the informal economy in 110 countries around the world , Washington DC : World Bank .

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Tustin , DH . 2003 . Forecast of economic indicators and formal trade sales by product group, 2003 , Pretoria : Unisa Bureau of Market Research . Research Report no 312

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