Deconstructing ‘the foreign’: The limits of citizenship for explaining price competition in the Spaza sector in South Africa

An important component of the informal economy in South Africa, the Spaza sector is portrayed as dominated by foreign nationals who outcompete South African shopkeepers on price. Indeed, this business competition from foreign nationals is a key reason given to explain xenophobia in South Africa. This article sets out to interrogate this widely held assumption. Drawing on evidence from over 1000 Spaza shops from South Africa’s three main cities, the article makes the case that business competitiveness does not correspond with ‘foreign’ or South African identities in a simple way. Firstly, while citizenship or nationality is a factor, it is not captured by the labels of ‘foreign’ versus South African, as there are significant differences by nationality within the ‘foreign’. Secondly, not all foreign nationalities out-compete South Africans on price. Thirdly, place matters too, not only because we find different nationalities in different cities, but also because there are different patterns of price competition by nationality in each place. Lastly, there are product-specific dynamics that impact on price more profoundly than nationality. For example, regardless of nationality, milk is cheaper in Cape Town and bread is cheaper in Johannesburg.     

The scope and scale of the informal food economy of South African urban residential townships: Results of a small-area micro-enterprise census

Growing urbanisation in South Africa is reflected in burgeoning Working class and informal township settlements on the fringes of its major towns and cities. Paired with this is an increasing reliance on cash as the primary means of economic transaction, which has in turn stimulated the growth of micro-enterprise business activities within the township context. This article discusses the findings of an eight-township small-area census which occurred between 2010 and 2013 in Cape Town, Johannesburg, Ekurhuleni and Durban townships representing 250 000 residents. The researchers were able to establish the scope and scale of informal food and drink retailing in these localities. Of the 10 049 micro-enterprises located in the study, some 3966 (or 39% of the total) trade in food. These include enterprises in primary production, fresh produce retailing, grocery retailing from house and spaza shops, and informal foodservice enterprises. Food is the basis for much township informal business and plays an important role in making food increasingly affordable and locally accessible, and in creating cash employment. The article builds on the knowledge base of the township informal economy role in bolstering food security needs for the marginalised.     

Enforced informalisation: The case of liquor retailers in South Africa

After a decade of unsuccessful efforts to migrate informal businesses to South Africa's formal economy there remains little understanding of the dynamics in this sector, especially as regards micro-enterprises. International literature discusses ‘exit’ and ‘exclusion’, holding that poor law enforcement is the reason for the persistence and growth of the informal economy. Through examining the informal liquor retail (shebeen) sector, we demonstrate that enforcement actually produces informality in this sector. Illustrated with examples from one of our sites in Delft South, Cape Town, the article describes key aspects of shebeen business practice, including the responses to greater law enforcement. Notably, instead of closing shop or facing the hurdles of compliance, the great majority of shebeens continue to evade the law by downscaling their activities. This finding has implications not just for liquor policy in South Africa, but for understanding both theories of formalisation and theories of the informal economy.     

A targeted approach to informal business development: the entrepreneurial route

The present paper maintains that initiatives to promote and support small businesses need to focus on those with growth potential rather than on the small business sector as a whole, and that the human factor, especially entrepreneurial intentions and behaviour, is the overwhelming force in small business success. Empirical evidence shows that many entrepreneurs setting up businesses in the informal economy of South Africa have little business acumen. The majority of informal businesses operate as survivalist entities with limited development and growth potential. The paper suggests that only between 10 and 15 per cent of informal entrepreneurs have sufficient business skills to expand and develop their businesses. These should be the focus of policy initiatives. Separate collective support measures should be designed to make the business environment more hospitable to low-potential informal businesses.     

Informal lending amongst friends and relatives: Can microcredit compete in rural China?

This paper explores the relationship between informal and formal lending in China with consideration of how the strength of informal lending might affect microcredit. Lending relationships involving trust are investigated using original survey data from over 1500 farm households. Econometric results confirm a relationship between trust and informal lending, and mistrust and formal lending. With over 67% of farm households borrowing from friends and relatives the economic significance between this form of informal lending and borrowing from Rural Credit Cooperatives and Micro Finance Institutions cannot be overlooked.     

The development of socially responsible investment in South Africa: experience and evolution of SRI in global markets

Sustainability practices, particularly those relating to Socially Responsible Investment (SRI), have still to be fully evolved in a developing country context. This article considers international trends in SRI and how these may relate to South Africa. It considers how, internationally, SRI has become increasingly motivated by the business case for risk-management and therefore how it may have the potential to offer superior returns (as demonstrated by recent experience in the United States). It examines the relevance of SRI trends to South Africa, where the concept of SRI still faces further structural development, and reviews the performance of funds operating in the South African SRI arena.     

Mobile entrepreneurship: Informal sector cross-border trade and street trade in South Africa

This article presents the results of a study on the participation of non-South Africans in the handicraft/curio sector of street trade in South Africa in informal sector cross-border trade. The findings provide an introduction to the largely unexplored phenomenon of informal sector cross-border trade between South Africa and neighbouring states and challenge some of the common myths about non-South African street traders which pervade public discourses around migration. The Southern African Development Community (SADC) is presently involved in prolonged and contentious negotiations to establish a free trade area for the region based on the SADC protocol on trade and development. At the same time, against a backdrop of anti-immigrant rhetoric, the South African government is developing a new migration policy. The article argues that informal cross-border entrepreneurs should not be disadvantaged by the renegotiation of regional trade agreements and the reformulation of South Africa's new migration policy.     

Defining and measuring informal employment in South Africa

There is limited consensus on how to define informal employment in South Africa, but in the South African and international literature the three most common ways of capturing informal employment are the enterprise, employment relationship and worker characteristics approaches. This paper reviews the methods used by Statistics South Africa to measure informal employment before and after the introduction of the Quarterly Labour Force Survey, and other recently proposed methods. It then investigates the congruence, if any, between five measures of informality used in 2009. It finds that 94.7% of the self-employed are informal according to at least one definition, but only 62.6% according to all five combined. In addition, these two proportions are only 67.7% and 6.9% respectively in the case of informal employees. Econometric analysis is conducted to further investigate the differences between these measures.     

未注册商标的法律保护

本文将未注册商标与注册商标进行了权利对比,说明了未注册商标的不利地位。分析了国内外有关未注册商标的保护现状,结合实际提出了一些完善未注册商标法律保护制度的建议,包括赋予有一定影响的未注册商标使用人继续使用权;赋予未注册驰名商标的专有使用权;赋予未注册商标使用人抗辩权等。     

Sustainable livelihood principles and urban greening in informal settlements in practice: A case of Zandspruit informal settlement,South Africa

This article looks to investigate the practice of using the ‘sustainable livelihood approach’ in a multifaceted urban greening project, Trees for Homes. The urban greening project was implemented to improve the quality of life and help marginalised citizens of an informal settlement in South Africa to adapt to climate variability through tree planting. We explored the actual execution of the independent techniques being utilised in the implementation of the Trees for Homes project and how it can promote sustainable livelihood objectives in the Zandspruit informal settlement in South Africa. Using a qualitative approach, the study was able to effectively apply sustainable livelihood principles. It was also found, however, that the multi-level principle was limited by the lack of political muscle which is endemic to many disempowered poor citizens of developing economies. Although the project was successful in many ways, political vulnerability within the development cycle threatens the longer term sustainability of the project outcomes.     

Perceptions of informal safety nets: A case study from a South African informal settlement

The relevance and importance of informal safety nets that buffer poor households from livelihood hardships have been given little attention in South Africa's development programmes to date. This article contributes to the understanding of informal safety nets by investigating local perceptions in a South African informal settlement. The main findings of the study are that families perform an important safety net function, but that these sources of assistance can be susceptible to social isolation. Immediate neighbours and friends also play an important safety net role, but these reciprocal-based sources of assistance may be difficult to secure. Community-wide threats can have a severe impact on people's ability to engage in safety net transfers. Many of these difficulties stem from South Africa's structural unemployment crisis. This factor is the greatest danger to the future of the informal safety net system in the informal settlement.     

Similarities and differences between male and female entrepreneurial attributes in manufacturing firms in the informal sector in the Transkei

Although South Africa has consistently registered positive economic growth rates since the democratic government took office in 1994, there has been no surge in new formal sector jobs. The public and private sectors have been shedding labour in response to economic imperatives of the domestic and global circumstances. Accordingly, more and more people are taking the route to informal sector entrepreneurship. Traditionally more men than women ventured into business; currently an increasing number of females are turning to self-employment. However, much that is known about business individuals is based on studies of male entrepreneurs. This article presents a comparative assessment of selected entrepreneurial attributes of male and female individuals engaged in informal sector manufacturing activities in the Transkei. Data were collected by means of a questionnaire administered to a sample of 80 micro-entrepreneurs in four urban centres. This study shows that the general entrepreneurial tendencies of the surveyed male and female micro-entrepreneurs are more similar than they are different. However, differences exist in value adding and job creation between the two groups.     

制度环境对贫困地区非正规创业行为的影响实证

非正规创业是指在非正规经济中实施的创业活动,因其有助于增加就业机会,提高经济收入,成为了缓解我国贫困问题的有效途径。基于制度理论,实证分析了制度环境对贫困地区非正规创业行为的影响机理与效应。研究发现:企业税费负担对贫困地区非正规创业行为有显著正向影响;政府行政管理和企业经营的法制环境对贫困地区非正规创业行为均有显著负向影响。     

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

The informal trade sector constitutes an important part of the South African economy, with estimated sales of R32 billion in 2002. Its emergence is largely attributed to the divergence between the growth in population, especially the urban population, and employment growth in the formal economy. Growth of informal enterprises, especially in the retail sector, is also thriving on the demand of less affluent households, whose household needs for unsophisticated and affordable products are aptly supplied by the informal sector. The aim of this article is to focus on one of the prominent sub-sectors of informal retailing, namely spaza or tuck shops, defined as small retail businesses which operate from a residential stand or home. Particular attention is paid to the size, role and characteristics of spaza trade in South Africa, which is estimated to account for nearly 3 per cent of South Africa's retail trade.     

略论我国未注册驰名商标保护中的国际私法问题

我国商标法对在我国境内未注册的驰名商标提供保护,由此而产生了有关于商标权成立、驰名商标的确认、商标许可使用合同与商标侵权等法律冲突与司法管辖权冲突问题。目前我国解决涉外合同、侵权的国际私法规则并不能适用于对未注册驰名商标保护这一特殊制度。因此,亟需根据未注册驰名商标保护的特殊性、有关问题法律冲突与管辖权冲突的特殊性来制定针对性的国际私法规范,以确定有相当合理性的准据法,从而使得我国的未注册驰名商标特殊的保护制度得以良性施行。     

REVISITING INFORMAL EMPLOYMENT AND SEGMENTATION IN THE SOUTH AFRICAN LABOUR MARKET

This study revisits the definition of informal employment, and it investigates the puzzle of high open unemployment co‐existing with relatively limited informal employment in South Africa. We estimate earnings equations using data from the September 2004 Labour Force Survey and present evidence of persistent earnings differentials not only between formal and informal employment, but also between types of informal employment. These persistent earnings differentials are suggestive of complex segmentation in the South African labour market and challenge the presentation of informal employment as an undifferentiated residual with no barriers to entry or mobility.     

How should civil society (and the government) respond to 'corporate social responsibility'? A critique of business motivations and the potential for partnerships

In theory, corporate social responsibility (CSR) considers private companies as potentially important development agents, particularly in partnership with the government and civil society groups. Following on the first article by Hamann in this issue, which considered the business perspective, this article considers how civil society should respond to the CSR and partnership concepts, with reference to the South African context. Firstly, a critical view of CSR emphasises the need to consider underlying motivations for business to embrace and perpetuate the CSR concept. These may relate to accommodation - the implementation of cosmetic changes to business practice in order to preclude bigger changes - and legitimisation - the influence by business over popular and policy-related discourse in order to define what questions may be asked and what answers are feasible. The second part of the article describes important benefits of the CSR concept for civil society groups, in terms of increased power and rights and hence better negotiating positions. This, however, requires that non-governmental organisations and others proactively engage in shaping the CSR debates, by insisting, inter alia, that CSR be underpinned by corporate accountability. Finally, the article argues that partnerships with business can indeed be beneficial to civil society groups, but that a critical position needs to be maintained within this cooperative approach, namely 'critical cooperation'. Such partnerships will require the strategic use of power-, rights- and interest-based negotiation. Following a brief overview of some recent South African experiences in the mining and chemicals sectors, the article concludes by pointing out the important role of the government in facilitating fair and effective partnerships.     

Breaching the barriers: The segmented business and innovation system of handicraft exports in Cape Town

Twenty years after apartheid was formally abolished, black handicraft exporters in Cape Town still innovate significantly less than their white counterparts. This study explains these differences based on the segmentation of business and innovation systems, a novel approach that aims to contribute to a deeper understanding of path dependency in South Africa. The study concludes that the business system is segmented between formal and informal firms and that such segmentation is correlated with race. Despite path dependency, a group of black entrepreneurs has managed to breach the barriers, owing to the ongoing support of an intermediate organisation, intense networking and risk-taking.     

Mining companies' role in sustainable development: The 'why' and 'how' of corporate social responsibility from a business perspective

This article - the first in a pair of articles on corporate social responsibility (CSR) - provides an overview of mining companies' role in sustainable development, from a business perspective and in the South African context. It argues that companies' social and environmental responsibilities are increasing, due to global changes in the way the role of business is perceived, South African policy developments, as well as a strong 'business case' for companies to actively support sustainable development - beyond philanthropy and impact mitigation. Partnerships between companies, the government and civil society are introduced as a potentially effective and efficient strategy for CSR. They are no panacea, however, and require a commitment to local communities' rights to informed prior consent and authentic participation. CSR hence presents mining companies with significant challenges. Given committed leadership and the right approach, it can entail important opportunities as well. Particular attention will need to be given to potential tensions between the international debate surrounding CSR, on the one hand, and local South African development challenges and companies' responses to them, on the other.     

Tourism,business linkages and small enterprise development in South Africa

Although considerable attention is given to the prospects for developing small, medium and micro-enterprises (SMMEs) in South Africa's tourism economy, very little relevant research has been undertaken in this regard. In this article, the findings are presented from over 60 detailed interviews conducted with key enterprises and entrepreneurs involved in tourism, outsourcing and small enterprise development in South Africa. The aim is to examine opportunities for outsourcing and business linkage development in South Africa's tourism economy, and to investigate the difficulties that confront the tourism SMME economy through examining the status of business linkages between large tourism enterprises and SMMEs in South Africa. The South African research is located within the context of existing works on tourism and small enterprise development in developing countries.