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GAUTENG TOWNSHIP BASELINE STUDY Case Studies: Ekurhuleni and Sedibeng2016/17 CONTENTS

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GAUTENG TOWNSHIP BASELINE STUDY Case Studies: Ekurhuleni and Sedibeng2016/17 CONTENTS THE GAUTENG TOWNSHIP BASELINE STUDY Case studies: Ekurhuleni and Sedibeng 2016/17 CONTENTS TOWNSHIP BASELINE STUDY AT A GLANCE .................................................................................................................... 4 EXECUTIVE SUMMARY ........................................................................................................................................................ 5 1. INTRODUCTION................................................................................................................................................................ 6 1.1 Why the study? .......................................................................................................................................................... 6 2. BACKGROUND .................................................................................................................................................................. 7 3. THE STUDY AREA - PROFILE SNAPSHOT ..................................................................................................................... 8 3.1 Overall municipal socio-economic snapshot ....................................................................................................12 4. METHODOLOGY .............................................................................................................................................................14 4.1 The township economy in a developing country: a framework for enterprise analysis. ........................14 4.1.1 The role of township enterprise in economic growth. ................................................................................14 4.1.2 Developing a framework to understand enterprise activity in the township and policy implications .......15 4.1.3 Measuring economic activity in the townships: ...........................................................................................16 4.2 The algorithm for the Sedibeng and Ekurhuleni township study ................................................................17 4.2.1 Data collection ......................................................................................................................................................17 5. THE FINDINGS .................................................................................................................................................................18 5.1 Exploratory Analysis ...............................................................................................................................................18 5.1.1 Reasons for starting businesses .......................................................................................................................18 5.1.2 Employment ..........................................................................................................................................................19 5.1.3 Business lifespan..................................................................................................................................................20 5.1.4 Business Registration ..........................................................................................................................................20 5.2 VALUE CHAIN ANALYSIS..........................................................................................................................................21 5.2.1 Sector Specific Value Chain Analysis ...............................................................................................................22 5.3 OWNERSHIP PATERNS .............................................................................................................................................26 5.3.1 Business by Citizenship ......................................................................................................................................26 5.3.2 Business by Disability .........................................................................................................................................27 5.3.3 Youth owned businesses ....................................................................................................................................27 5.3.4 Business ownership by gender .........................................................................................................................28 5.3.5 Business ownership by turnover ......................................................................................................................28 5.4 KEY CHALLENGES .....................................................................................................................................................29 5.5 MODEL ESTIMATION ................................................................................................................................................30 5.5.1 Model 1: What determines the longevity of township businesses? ........................................................30 5.5.2 Model 2: Is there a relationship between registration status of a township business and its success?..... 32 6. CONCLUSION ..................................................................................................................................................................35 7. RECOMMENDATIONS ....................................................................................................................................................36 8. AREA OF FURTHER RESEARCH ....................................................................................................................................36 9. ANNEXURE ..................................................................................................................................................................37 CASE STUDIES: EKURHULENI AND SEDIBENG 2016/17 2 THE GAUTENG TOWNSHIP BASELINE STUDY CASE STUDIES: List of Infographics Graphic 1: Tsakane Profile............................................................................................................................................................................ 08 Graphic 2: Duduza profile ............................................................................................................................................................................ 09 Graphic 3: KwaThema profile ...................................................................................................................................................................... 10 Graphic 4: Porter’s Generic Value Chain .................................................................................................................................................. 21 Graphic 5: Porter’s value chain as it applies on Gauteng townships ................................................................................................. 21 Graphic 6: The circular flow of economic activity (McDonald and McMillen, 2011) ..................................................................... 22 List of Figures Figure 1: Sedibeng and Ekurhuleni – Employment & Output Growth ............................................................................................... 12 Figure 2: Ekurhuleni - Employment and Output growth vs sectoral share of output ..............................................................12-13 Figure 3: Reason for starting the business ............................................................................................................................................... 18 Figure 4: Employment levels ....................................................................................................................................................................... 19 Figure 5: Employment by sector ................................................................................................................................................................ 19 Figure 6: Business Registration .................................................................................................................................................................. 20 Figure 7: Suppliers of the services sectors .............................................................................................................................................. 23 Figure 8: Manufacturing sector customers .............................................................................................................................................. 24 Figure 9: Manufacturing sector suppliers ................................................................................................................................................ 25 Figure 10: Reason for starting the manufacturing business ................................................................................................................ 25 Figure 11: Ownership by citizenship......................................................................................................................................................... 26 Figure 12: Business ownership by disability ........................................................................................................................................... 27 Figure 13: Youth owned businesses by duration of business ............................................................................................................. 27 Figure 14: Ownership by gender ...............................................................................................................................................................
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