Constraints to Growth and Employment in Durban: Evidence from the Informal Economy
This report stems from collaboration between the Durban Municipality, the World Bank and the School of Development Studies. It is one of five reports concerned with constraints to growth in the Durban economy and it concentrates on the informal component of the economy. This study builds on the substantial research - both independent and commissioned by the city - that has been conducted on the informal economy in the Durban area in the past decade. This study is unique in that it is based on a large sample - 507 interviews - and a very detailed questionnaire. An explicit attempt was made not only to capture segments of the informal economy where there are large numbers of people working – apparel, craft and traditional medicine – but also to include sectors where there is little existing knowledge - construction, metal work, crèches and hairdressing. The objective of this report is four-fold. First, the survey allows for a detailed descriptive account of informal enterprises operating in Durban. The second objective is to critically assess what services enterprise owners and their workers have had access to in the past. The third objective is to discern informal enterprise owners’ own perceptions of constraints to growth. Informed by all of the above, the final objective is to highlight priority areas for intervention for local government.
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