In the absence of economic activities in the formal sector, unskilled, poor and marginalised South Africans rely on the informal economy and government cash transfers for survival. The informal economy due to its easy access provides various economic generating activities for the poor in South Africa. The structure of the economy favours the development of established formal businesses that meet the minimum standards such as registration. This business development strategy can be traced back to apartheid policies that prevented black people from operating registered businesses in urban areas. Apartheid policies favoured the social and economic development of the white minority at the expense of the black majority. As a result, the majority remain in the areas that are underdeveloped with poor infrastructure.
Download Full PDF Document – local-enterprises-and-local-economic-development-led-case-study-report-on-local-enterprises-in-evaton