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

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  • AA Ligthelm

Abstract

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.

Suggested Citation

  • AA Ligthelm, 2005. "Informal retailing through home-based micro-enterprises: The role of spaza shops," Development Southern Africa, Taylor & Francis Journals, vol. 22(2), pages 199-214.
  • Handle: RePEc:taf:deveza:v:22:y:2005:i:2:p:199-214
    DOI: 10.1080/03768350500163030
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    Cited by:

    1. Isabelle Guérin & Bert D'Espallier & G. Venkatasubramanian, 2015. "The Social Regulation of Markets: Why Microcredit Fails to Promote Jobs in Rural South India," Development and Change, International Institute of Social Studies, vol. 46(6), pages 1277-1301, November.
    2. Amanda J. Muhammad & Alina M. Waite & Dwuena C. Wyre, 2019. "Informal Sector Retail Start-Ups In A Caribbean Context," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-15, June.
    3. Aalia Cassim & Kezia Lilenstein & Morne Oosthuizen & Francois Steenkamp, 2016. "Informality and Inclusive Growth in Sub-Saharan Africa," Working Papers 201602, University of Cape Town, Development Policy Research Unit.
    4. Zuwarimwe, J. & Kirsten, Johann F., 2010. "The role of social networks in development of small-scale enterprises in the Chimanimani district of Zimbabwe," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(1), pages 1-22, March.
    5. Verrest, Hebe, 2013. "Rethinking Microentrepreneurship and Business Development Programs: Vulnerability and Ambition in Low-income Urban Caribbean Households," World Development, Elsevier, vol. 47(C), pages 58-70.
    6. Marle van Eyk & Felix Amoah & Thembelihle Yase, 2022. "Sustaining the Township Economy: An Investigation into the Factors Influencing the Shopping Experience of Spaza Shop Customers in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 14(3), pages 20-32.

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