The scope and extent of home-based business income relative to employment earnings in financing basic household expenditures: a study in the sub-economic housing area of Kleinvlei in the Cape Metropole
The scope and extent of home-based businesses and the determination of the method by which the greater portion of household income is generated, in poor neighbourhoods, is the crux ofthis study.The study was undertaken among the 2245 households in the Kleinvlei sub-economic housing area located in the Oostenberg municipal substructure within the Cape Metropole.According to the municipal statistics the average income among these households is R75 (Rands 75) per month and the educational level ofthe population is of a low standard. A random sample of 500 households was the basis ofthe research data. The size, necessity and importance ofself-generated (business-derived) income in augmenting primary employment-related (wage-based) earnings is the focus of this research study. Declared sources of income are verified by measuring the percentage spent on essential household goods and services. Ancillary objectives are determining the motivation for starting these businesses as well as measuring household wealth (assets) through observations.The significance ofthis descriptive research is the determination of the relative contribution of business income and the magnitude of the levels ofpoverty. It provides the primary data (base information) for policy formulation relating to social and economic development in this sub-economic.The results correlate with findings of national longitudinal studies. The level ofjob creation through businesses is minimal and the extent of unemployment is much greater than anticipated.
Year of publication: |
2002-01-01
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Authors: | Pick, Bernard |
Publisher: |
Digital Knowledge |
Subject: | Home-based businesses | South Africa | Income distribution | Informal sector (Economics) | Entrepreneurship |
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