Browsing by Author "Charman, Andrew"

Now showing 1 - 7 of 7
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    Enforced informalisation: the case of liquor retailers in South Africa
    (Taylor & Francis, 2013) Charman, Andrew; Petersen, Leif; Piper, Laurence
    After a decade of unsuccessful efforts to migrate informal businesses to South Africa’s formal economy there remains little understanding of the dynamics in this sector, especially as regards micro-enterprises. International literature discusses ‘exit’ and ‘exclusion’, holding that poor law enforcement is the reason for the persistence and growth of the informal economy. Through examining the informal liquor retail (“shebeen”) sector, we demonstrate that enforcement actually produces informality in this sector. Illustrated with examples from one of our sites in Delft South, Cape Town, the article describes key aspects of shebeen business practice, including the responses to greater law enforcement. Notably, instead of closing shop or facing the hurdles of compliance, the great majority of shebeens continue to evade the law by downscaling their activities. This finding has implications, not just for liquor policy in South Africa, but for understanding both theories of formalisation and theories of the informal economy.
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    From local survivalism to foreign entrepreneurship: the transformation of the spaza sector in Delft, Cape Town
    (University of KwaZulu-Natal, 2012) Charman, Andrew; Petersen, Leif; Piper, Laurence
    Small, home-based grocery stores, known as spaza shops, are ubiquitous throughout the township areas of urban South Africa, constituting an important business in the informal economy. In recent years, this retail market has become a site of fierce competition between South African shopkeepers and foreign entrepreneurs, especially Somalis, and is often cited in the media as one reason behind the xenophobic attacks on foreigners. Drawing on original data collected in the Delft township in the city of Cape Town, this paper demonstrates that foreign entrepreneurs, overwhelmingly Somalis, have come to own around half of the sizeable spaza market in Delft in the last five years. This increase is attributable to larger scale and price competitive behaviour as these entrepreneurs operate collectively in terms of buying shops, and stock, as well as in stock distribution. Also important are some more customer friendly services too. Compared to the more 'survivalist' local business model where individual owners look to supplement existing household income rather than generate an entire livelihood, the Somali business model has rapidly outcompeted local owners, bringing spaza prices down and forcing many locals to rent out their shop space to foreign shopkeepers. Consequently, while South African shopkeepers resent the Somali influx, most consumers appreciate the better prices and improved service. The rise of Somali shopkeepers thus represents a transformation of business practice in the spaza sector from survivalist to entrepreneurial modes
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    Informality disallowed: State restrictions on informal traders and micro-enterprises in Browns farm, Cape Town, South Africa
    (Pan-African University Press, 2019) Piper, Laurence; Charman, Andrew; Petersen, Leif
    This chapter examines the impact of regulations and law enforcement on the economic activities of informal traders and micro-entrepreneurs in marginalised communities on the urban periphery. Our case site is Browns Farm, Philippi, a township in the City of Cape Town, South Africa, where a micro-enterprise census and business operator survey was conducted in 2011 (Charman et al, 2015). The chapter argues that despite the signi¿cant number of informal businesses in South African townships, the state continues to pursue efforts that either prevent formalisation or circumscribe informal activities. At the heart of our argument is the assertion that the informal economic practices of the urban poor constitute a ‘lived economy’ whose
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    The role of family in the township informal economy of food and drink in KwaMashu, South Africa
    (Emerald, 2018) Petersen, Leif; Charman, Andrew
    The purpose of this paper is to provide a qualitative investigation of family employment dynamics in the KwaMashu township economy. Using a small area census research method, the researchers identified 1,556 businesses located in a settlement of 2 km2 . Of these enterprises, 694 (45 percent) traded in fast moving consumer goods, notably food and/or drink. The main retailers were small shops (spaza shops) and liquor outlets (bars or shebeens), greengrocers, sellers of meat and poultry products, house shops, restaurants, takeaways and tuckshops. Firm surveys were conducted with 270 businesses in four predominant sectors: liquor retail, grocery retail, early childhood educators and hair care businesses. The research found that 40 percent of the surveyed firms in these sectors employ family members on a full-time basis, whereas merely 26 percent of firms employ family members on a part-time basis. In the grocery retail sector, about half of family employees are remunerated on a wage basis, the other half are paid in-kind (40 paper of the total) or on a profit share arrangement. In liquor retail and educare sectors, the majority of family members are paid wages. Female-run enterprises employ less family members on a full-time basis (except in the grocery sector), yet employ more family members on a part-time basis with a higher portion of wages paid in-kind. Family plays an important role in township enterprises. Beyond direct employment, township enterprises fulfill an important social protection and neighborhood relationship function for business operators and their families. The familial relationship to micro-enterprises should be seen through the lens of bricolage (Gras and Nason, 2015). In this respect, the authors confirm three benefits of family firms: the creation of social protection though family beneficiation, the provision of employment and work experience and the strategic use of family resources.
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    Tenderpreneur (also tenderpreneurship and tenderpreneurism)
    (UCL Press, 2018) Piper, Laurence; Charman, Andrew
    ‘Tenderpreneur’ is a South African colloquialism for a businessperson who uses political contacts to secure government procurement contracts (called ‘tenders’) often as part of reciprocal exchange of favours or benefits. The term is a portmanteau of ‘tender’ (to provide business services) and ‘entrepreneur’. Today, ‘tenderpreneurs’ are associated with corruption, nepotism and clientelism. This is because the award of many tenders is driven by informal interests and/or political affiliation, rather than the requirements of formal procedure. The informality of ‘tenderpreneurship’ thus resides in these extra-legal social and political relationships.
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    What price cheap goods? Survivalists, informalists and competition in the township retail grocery trade
    (PLAAS, 2019-08-31) Petersen, Leif; Thorogood, Camilla; Charman, Andrew; Du Toit, Andries
    About 54% of South Africa’s township microenterprises trade in food or drink. More than two-thirds of these are grocery retail businesses in the form of spaza shops and smaller ‘house shops’. These are the predominant businesses within the ‘township economy’ and play an important role in food security, self-employment and community cohesion. In the last decade, the business of spaza shops (dedicated, signposted businesses with a range of foodstuffs and open five days per week or more) has undergone extensive change towards a new class of entrepreneurial traders – mostly foreign nationals. This change has meant that the sector has become increasingly controversial and associated with chauvinistic and xenophobic discourses targeting immigrants. While the nature, causes and extent of change in informal grocery retail markets have been noted by various authors over the past decade, there is as yet no comprehensive account of the changing nature of business dynamics and competitiveness in the sector.
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    Xenophobia, criminality and violent entrepreneurship: violence against Somali shopkeepers in Delft South, Cape Town, South Africa
    (Taylor & Francis; Unisa Press, 2012) Piper, Laurence; Charman, Andrew
    Violence against Somali shopkeepers is often cited as evidence of xenophobic attitudes and violence in South Africa. However, as argued in this article, it is not necessarily the case that such violence is driven by anti-foreigner sentiment. Instead, as illustrated in the case of Delft, a poor, mixed-race area in the City of Cape Town, violence against spaza shopkeepers may also be explained in terms of criminal activities and economic competition in the form of ‘violent entrepreneurship’. This argument is made drawing on a survey of over 100 spaza shopkeepers, a household survey, police statistics, and interviews and focus groups with key stakeholders living in Delft. The key insight is that despite a recent history of intense economic competition in the spaza market in which foreign skopkeepers have come to dominate, levels of violent crime against foreign shopkeepers, 80 per cent of whom are Somali, are not significantly higher than against South African shopkeepers. In addition, while South African shopkeepers openly resent the Somali advent, most consumers remain indifferent to their presence and certainly prefer the lower prices. While our findings cannot be generalised beyond this case, they do alert us to the importance of locating arguments about xenophobia in the wider context of crime and violence in South Africa, as well as paying close attention to the local particularities that can turn general sentiment into xenophobic action.