Resource information
The Entrepreneurial sector in South Africa is seen as a critical component in addressing the fundamental issues of unemployment and poverty, as well as contributing to meaningful Black Economic Empowerment. This is very evident with the Home Based Entrepreneurs though low rates of entrepreneurship are still occurring. This research seeks to provide a deeper understanding of housing as a productive asset and its role in promoting economic activity and improved affordable housing supply, through supporting the activities of Home Based Entrepreneurs and Small Scale Landlords. The research focuses on obtaining a detailed understanding of how Small Scale Landlords and Home Based Entrepreneurs operate, the key constraints that they face and the extent to which they are using their home as a productive asset. This is set within the context of a broad understanding of entrepreneurship and current policy and practice in unleashing and supporting entrepreneurial activity. The report find that Housing in South Africa is an economically productive asset, offering opportunities for income generation and poverty alleviation both in terms of using the house as collateral for a loan as well as venue for business. It is estimated that up to 355,000 HBEs are active in Inner Cities and Townships generating a significant monthly income estimated at approximately R476 million per month. This comprises 13% of the total population of these areas. While most of these businesses can be classified as micro or small, for many of the entrepreneurs who own them, they represent their sole income. To promote the emergence and growth of Home Based Entrepreneurs (HBE’s), the report recommends among other things, the following interventions by governments at the national, provincial and local levels: Recognition and support of HBEs; Providing access to services, infrastructure and property rights; Providing information which promotes home based enterprises; Support to Municipalities; Providing information about service providers, which are able to assist entrepreneurs with skills, finance and other support; Review of regulatory requirements; Training their officials and politicians in the importance of supporting home based enterprise and on striking the balance between regulating harmful practices and unnecessarily obstructing harmless activities; Promoting linkages with the formal sector; Ensuring that commercial sites for small enterprises are available both within; existing residential areas and in planned residential areas.
