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Winter 2020

ISSN 0890-913X

Volume 35, Number 4

Categories: Winter 2020 | Business | Developing countries

Legal Factors Affecting the Establishment of Township SMMEs in South Africa: Are They Killing Small Businesses?

Michael Cant, University of South Africa

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TheJournalofPrivateEnterprise35(4),2020,61–70LegalFactorsAffectingtheEstablishmentofTownshipSMMEsinSouthAfrica:AreTheyKillingSmallBusinesses?MichaelCantUniversityofSouthAfrica__________________________________________________________AbstractSmallbusinessesarewidelyconsideredtobevaluableassetsforanyeconomy.Thissectorcontributesupto20percentoftheSouthAfricaneconomyandholdsthekeytoimprovingthequalityoflifeofresidentswholiveininformalsettlements,assmallbusinesseshavetheabilitytocreatejobs.ItisthereforeimperativeforthegovernmenttoimplementstrategiestoassistSouthAfrica’ssmall,medium,andmicroenterprise(SMME)ownerswithlegalprocessesinordertocreateamoreenablingoperatingenvironmentintownships.__________________________________________________________JELCodes:O50,M31,M38Keywords:developingcountry,SMMEs,law,marketing,regulations,SouthAfricaI.IntroductionTheterm“township”iscommonlyusedinSouthAfricatodescribetheunderdevelopedandprimarilyurbanordesignatedsegregatedurbanlivingareasthatwereestablishedduringapartheidandwerereservedfornonwhites(Africans,Coloreds,andIndians)inSouthAfricawhoworkedinareasthatwereclassifiedaswhiteonly(PerneggerandGodehart2007,p.2).Theseunderdevelopedresidentialareaswereestablishedclosetowhites-onlyareasinordertosupplytherequiredworkforceforthewhiteareas—withouthavingtointegratethelivingareas.Althoughformalsegregationendedwiththenewdemocracyin1994,manytownshipresidentsandbusinessesaredeniedeffectiveaccesstobasicpublicandsocialservices,suchasrunningwater,electricity,publictransport,medicalcare,andeducation.Thisstateofaffairscreateditsownproblemsasitexacerbatedunemployment,resultinginhighercrimeandviolenceinthesetownships.Residentslivinginthesesettlementsthereforefinditextremelydifficultto

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Title	Legal Factors Affecting the Establishment of Township SMMEs in South Africa: Are They Killing Small Businesses?
Authors/Creators:	Michael Cant, University of South Africa
Year:	2020
Volume:	35
Number:	4
Pages:	61 - 70
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	developing country, SMMEs, law, marketing, regulations, South Africa

Citation:
Cant, Michael / 2020. "Legal Factors Affecting the Establishment of Township SMMEs in South Africa: Are They Killing Small Businesses?." The Journal of Private Enterprise, 35(4): 61-70.