The following source will give you deeper look into the thriving township economy
Key Takeaways:
The list of businesses within the township economy:
- Retail dominates with Spaza shops, shebeens, fast food outlets,bakeries and hawkers
- Backroom Rental
- Minibus Taxi Operators
- Mechanics Panel Beaters
- Metal Fabricators
- Childcare services
- Barbers & Hairsalons
Informal enterprises contribute an estimated 6% to GDP.
- the median income of workers in the informal sector is about R2,000 per month, compared to R4,300 in the formal sector.
- Self-employed workers, particularly men, earned more – R6,700 per month, on average.
Challenges faced by township entrepreneurs
- Vulnerable to crime, theft and police harassment
- Lack of business knowledge and general skills
- little or no access to capital, credit and transactional facilities, mortgage loans, asset finance or insurance.
The township economy has the potential to support job creation and economic growth alongside South Africa's formal business sector.
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