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Bindura Universirty of Science Education Faculty BINDURA UNIVERSIRTY OF SCIENCE EDUCATION FACULTY OF SCIENCE EDUCATION INVESTIGATING THE INFORMAL SECTOR AS A LIVELIHOOD STRATEGY FOR THE PEOPLE AT ESIGODINI BETWEEN 2010-2015 BY KWASHIRA CAIN (B1234540) SUPERVISOR: MR MISHECK MHISHI A DISSERTATION SUBMITTED TO BINDURA UNIVERSITY OF SCIENCE EDUCATION IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE BACHELOR OF SCIENCE EDUCATION HONOUORS DEGREE- GEOGRAPHY APRIL 2016 2 DECLARATION FORM I, Kwashira Cain declare that this research project is my original work and that it has not been submitted to this or other university in support of my application for a degree or any other qualification. Signed ___________________ Date _______________ Witness __________________ Date _______________ Supervisor I, ________________________ declare that I have supervised this research and I am satisfied that it can be submitted to faculty of Science Education Bindura University of Science Education 2 RELEASE FORM NAME OF AUTHOR: KWASHIRA CAIN TITLE OF THE PROJECT : Investigating the informal sector as a livelihood strategy for the people at Esigodini between 2010-2015 DEGREE PROGRAMME: Bachelor of Science Education Honours Degree- geography YEAR THIS DEGREE WAS GRANTED : Permission is hereby granted to Bindura University of Science Education library to produce single copies of this project and lend or sell such copies for private, scholarly or scientific research purposes only. The author does not reserve other publication rights and the project nor may extensive extracts from it be printed or otherwise produced without the author’s permission. Signed…………………………………………………………….. Date……………………………………………………………….. 3 APPROVAL FORM BINDURA UNIVERSITY OF SCIENCE EDUCATION The undersigned certify that they have read and recommended to Bindura University of Science Education for acceptance of research project entitled: Investigating the informal sector as a livelihood strategy for the people at Esigodini between 2010-2015. Submitted by Kwashira Cain. In partial fulfilment of the requirement for a Bachelor of Science Education Honours Degreee- Geography. Supervisor: Mr Misheck Mhishi Signature……………………………………………… Date……………………………………. Program Coordinator ……………………………………………………………………………… Signature……………………………………………. Date………………………………………. External Examine External Examiner Date……………………………….. Date……………………………………. 4 DEDICATION To my Lord Jesus Christ who gave me the strength to carry out the research and to my wife Azalea Kwashira and my son Caleb T Kwashira and my mother, brother who gave me the time and their support to work on this research project. 5 ACKNOWLEDGEMENTS My sincere gratitude go to my supervisor Mr M Mhishi who equipped me with the knowledge in research and for spending his valuable time guiding me in the in the process of pursuing my research. Most sincere thanks go to my wife for financial support and moral support and the informal sector operators for their cooperation during the time of collecting data. 6 ABSTRACT The purpose of this study was to investigate the informal sector as a survival strategy at Esigodini in Umzingwane District. Sixty Esigodini informal traders constituted the sampled population of the informal sector traders who were given questionnaires and interviewed by the researcher. Only 31% of participants responded to the questionnaire where the following findings were made, that the majority of informal traders were relying on their informal trading activities as a source of livelihood 7 TABLE OF CONTENTS Cover page………………………………………………………………………………….i Declaration…………………………………………………………………………………ii Release form……………………………………………………………………………….iii Approval form……………………………………………………………………………...iv Declaration…………………………………………………………………………………v Acknowledgement………………………………………………………………………....vi Abstract…………………………………………………………………………………….vii Table of contents…………………………………………………………………………...viii List of tables………………………………………………………………………………...ix List of figures……………………………………………………………………………….x List of appendices………………………………………………………………………...…xi 8 TABLE OF CONTENTS 1.0 Introduction……………………………………………………………………………..1 1.1 Background of the study………………………………………………………..1 1.2 Statement of the problem………………………………………………………..2 1.3 Rationale /Justification of the study……………………………………………….2 1.40 Research Questions…………………………………………………………….3 1.41 Main question…………………………………………………………………..3 1.42 Sub-research questions ………………………………………………………...3 1.5 Aims/General Objectives…………………………………………………….…....3 1.51 Specific Objectives……………………………………………………………....3 1.6 Significance of the study………………………………………………………..4 1.7 Assumptions of the study…………………………………………………….....4 1.8 Delimitation of the study……………………………………………………......4 1.9 Limitations of the study…………………………………………………………4 1.10 Definition of Terms………………………………………………………...5 1.11 Informal ……………………………………………………………………....5 1.12 Informal sector ………………………………………………………………...5 1.13 Livelihood…………………………………………………………………….....5 1.14 Strategy………………………………………………………………………...5 1.15 Flea market…………………………………………………………………….5 1.16 Gold panning…………………………………………………………………..5 1.17 Fast food out lets………………………………………………………………5 2.0 Literature Review 9 3: Research Methodology………………………….……………………………………..13 3.1 Population……………………………………………………………………..13 3.2 Sampling……………………………………………………………………….14 3.3 Questionnaires…………………………………………………………………14 3.4 Data Collection Methods and Procedures…………………………………….15 3.5 Interviews……………………………………………………………………...15 3.6 Data collection procedure ……………………………………………………..15 3.7 Data Analysis ……………………………………………………………….....16 4. Research Findings………………………………………………………………..………17 4.1 Data presentation and analysis…………………………………………...............17 4.2 Response rate …………………………………………………………………….17 4.3 Demographic details…………………………………………………….............18 4.3.1 Respondents’ gender ……………………………………………..............18,19 4.3.2 Age.…………………………………………………………………..……....20 4.4 Respondents highest level of education ……………………………………….21 4.5 How long respondents have been in the sector ………………………………..23 4.6 Respondents average monthly income range ………………………………….24 4.7 Respondents average profit per month…………………………………............25 4.8 Whether respondents keep business record on purchase……………………….26 4.9 Whether keep business records on sales………………………………………..27 4.10 Where respondents get stock………………………………………….............28 4.11 Benefits of informal sector to respondents family…………………………….29 4.12 Whether the informal sector is respondents’ sole source of income…………..30 4.13 Whether informal sector business is registered………………….….……..31,32 10 5.0. Summary, Conclusions and Recommendations…………………………………….34 5.1. Summary……………………………………………………………………...34 5.2. Conclusions……………………………………………………………...........35 5.3. Recommendations…………………………………………………………….35 5.4. Suggestions for future research……………………………………………….36 LIST OF TABLES Table 4.13 Whether informal sector business is registered..……………………………….31 11 LIST OF FIGURES Figure 1 Age range…………..……………………………………………………19 Figure 2 Level of education………………………………………………………..21 Figure 3 Time in the informal sector…………….………………………….…..…22 Figure 4 The average income received per month……………………………..…..24 Figure 5 Profit per month………………………………………………….…..…..25 Figure 6 Do you keep records of business…………................................................26 Figure 7 Where respondents get their stock…………………….……………….....28 Figure 8 Benefits of the informal sector……………….………………....………..29 Figure 9 Informal sector as a sole source of income….…………….………..……30 Figure 10 Is the informal sector business registered……………………………...31 12 CHAPTER 1: INTRODUCTION 1.0 Introduction This chapter describes the background of the study, statement of the problem, rationale or justification of the study, research questions or hypothesises aims or general objectives, specific objectives as well as definition of related terms. 1.1 Background of the study The Zimbabwean economy has undergone significant structural transformation in the last decade that has inevitably forced the growth of informal sector. An increasing number of the active labour force is being absorbed in the informal sector. It has been noted that informal sector plays a crucial role in the livelihood of people in Zimbabwe as it helps to nimprove the standard of living of people. The researcher noticed that people in Esigodini rely mostly in informal sector. The sector is unstructured and can come in any form. For example, it can cover the (i) sale of cooked and uncooked foods which reflects the dominance of agriculture in the economy; (ii) service sector which includes barber shops, general stores (or kiosks), open-air garages and sale of used clothing; and (iii) the manufacturing of wood and metal products notably furniture and related household metal- based good. People at Esigodini view the informal sector as the major potential source of entrepreneurship, hence a source of income for both the uneducated/educated and unskilled/skilled. This study explores the informal sector as a livelihood strategy in the lives for the people of Esigodini and attempts to suggest ways of making this sector an even better source of income for them. Through the study, an attempt will be made to prove that the promotion of the informal sector activities or at least the elimination of regulations and stifling restrictions could open up a source of income which people can use as a panacea to poverty and unemployment. The challenges the people in informal sector faces are confiscation of their wares by the rural district council officers, Zimbabwe Republic Police, shortage electricity and
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