Are home‐based enterprises ‘worthwhile’? The informal sector with reference to social security

Abstract

This article arises from a countrywide survey on ‘affordable social provision’. Since people's ability to provide for the contingencies in their lives usually depends on their involvement in the formal employment market, the question may be asked to what extent the increasing numbers of those not directly connected with the world of work can make provision for themselves. In order to determine that, the possibilities for the generation of income outside the formal market have to be established. In this article people's views on the economic viability of certain activities that can be undertaken at home are analysed.

Making and selling of handiwork and clothing were largely seen as economically worthwhile, while services such as child minding, small‐scale removals, etc, were most often mentioned under the heading ‘worthwhile for other reasons’. Important predictors of the particular choice made were respondents' domicile — metropolitan or non‐metropolitan — the type of home tenure arrangements they had, where they had spent their childhood (rural area, town, etc) and education.

The generally positive views of metropolitan dwellers may indicate high expectations regarding the potential of informal sector activities. Opportunities afforded by, for example, deregulation, more accessible credit advice on and training in business management, etc, could help to meet such expectations. Such opportunities could also promote income generation for those with tenuous or no links with the formal market

Notes

Institute for Sociological and Demographic Research, Human Sciences Research Council (HSRC), Pretoria.