Debt financing the capital requirements of informal market traders

This paper describes a case study undertaken to determine whether formal sector personal debt financing might contribute to the funding of South African informal market traders. The case study was conducted at the Natalspruit informal market in Ekhuruleni, Gauteng1.  Quantitative questionnaire surve...

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Bibliographic Details
Published inSouth African journal of economic and management sciences Vol. 13; no. 3; pp. 329 - 344
Main Authors Schraader, Derek, Whittaker, Louise, McKay, Ian
Format Journal Article
LanguageEnglish
Published AOSIS 10.09.2010
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Summary:This paper describes a case study undertaken to determine whether formal sector personal debt financing might contribute to the funding of South African informal market traders. The case study was conducted at the Natalspruit informal market in Ekhuruleni, Gauteng1.  Quantitative questionnaire surveys and a financial diaries project established that market traders in the Natalspruit informal market: have capital requirements large enough to justify the use of formal sector debt financing, can generate sufficient operating profits to pay for formal sector debt financing, and would be willing to utilise formal sector debt financing if given the opportunity. However, formal sector debt financing is most relevant to those informal market traders with the skills and motivation to utilize financing provided effectively and who are willing to inject more formality into their business.
ISSN:1015-8812
2222-3436
DOI:10.4102/sajems.v13i3.105