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PHENDUKANI FULL SERVICE HIGH SCHOOL
GRADE: 121
DUE DATE: 02 JUNE 2025
SUBJECT: GEOGRAPHY RESEARCH PROJECT
NAMES: SIYABONGA HLATSHWAYO
SIMISO MDLULI
INAMANDLA MNCUBE
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TABLE OF CONTENT
PAGE ITEM
3 HYPOTHESIS AND BACKGROUND INFORMATION
4 MAP OF MADADENI
5 QUESTIONS
6 LITERATURE RESEARCH
7 ANALYSIS AND SYNTHESIS OF DATA
8 DATA REPRESENTATION
9 RECOMMENDATIONS AND SOLUTIONS
9 CONCLUSION
10 BIBLIOGRAPHY
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HYPOTHESIS
INFORMAL SECTORS PLAYS A PIVOTAL ROLE IN THE LOCAL ECONOMY OF
MADADENI.
BACKGROUND INFORMATION
MADADENI IS A TOWNSHIP IN NEWCASTLE, KWAZULU NATAL, SOUTH AFRICA,
WHICH FALLS UNDER AMAJUBA DISTRICT MUNICIPALITY. THE NAME
MADADENI IS A ZULU TRANSLATION OF DUCK PONDS, WHICH WAS THE NAME
OF THE AREA BEFORE THE ESTABLISHMENT OF THE TOWNSHIP OF MADADENI.
IT WAS HISTORICALLY RESERVED FOR NON-WHITES RESIDENTS DURING THE
APARTHEID ERA IN SOUTH AFRICA MADADENI WAS ESTABLISHED AS A BLACK
RESIDENTIAL AREA AFTER THE GROUP AREAS ACT IN THE 1950s AS PART OF
THE APARTHEID GOVERNMENT’S POLICY OF RACIAL SEGREGATION AND
FORCED REMOVALS. THE KWAZULU NATAL GOVERNMENT WAS RESPONSIBLE
FOR THE ADMINISTRATION OF MADADENI FROM 1972 TO 1994, BUT TODAY IT
FORMS PART OF THE GREATER NEWCASTLE MUNICIPALITY. MADADENI
COVERS A SIGNIFICANT AREA, WITH RESIDENTIAL, COMMERCIAL, AND
INDUSTRIAL ZONES. MADADENI HOUSES ONE OF NEWCASTLE’S TWO
GOVERNMENT HOSPITALS, MADADENI PROVINCIAL HOSPITAL, WHICH WAS
ORIGINALLY FOUNDED AS A MENTAL HOSPITAL ON AUGUST 1, 1967.
MADADENI HAS A POPULATION OF 119 497 CITIZENS AS OF THE 2011 CENSUS.
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MAP OF MADADENI
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QUESTIONS
TO THE BUSINESSES:
WHAT MOTIVATED YOU TO START YOUR BUSINESS?
HOW DOES YOUR BUSINESS CONTRIBUTE TO THE LOCAL ECONOMY?
WHAT ARE THE BIGGEST CHALLENGES YOU FACE IN YOUR BUSINESS?
HAVE YOU RECEIVED ANY TRAINING FOR YOUR BUSINESS?
WHAT SKILLS OR KNOWLEDGE DO YOU THINK WOULD HELP YOU GROW
YOUR BUSINESS?
HOW DO YOU THHINK THE LOCAL GOVERNMENT CAN BETTER SUPPORT
YOUR BUSINESS?
TO THE HOUSEHOLDS:
HOW OFTEN DO YOU SHOP AT LOCAL BUSINESSES?
HOW IMPORTANT DO YOU THINK LOCAL BUSINESSES ARE IN YOUR
COMMUNITY?
DO YOU THINK LOCAL BUSINESSES CONTRIBUTE IN YOUR LOCAL
ECONOMY?
DO YOU THINK LOCAL BUSINESSES PROVIDES GOODS OR SERVICES THAT
BENEFITS YOUR NEEDS?
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LITERATURE RESEARCH
SOUTH AFRICA’S INFORMAL SECTORS PLAYS A VERY IMPORTANT ROLE IN THE
COUNTRY’S ECONOMY, CREATING JOBS FOR THE UNEMPLOYED AND
PROVIDING INCOME FOR MILLIONS WHO STRUGGLE TO FIND OPPORTUNTIES
IN THE FORMAL LABOUR MARKET.
ALTHOUGH SOUTH AFRICA’S INFORMAL SECTOR IS SMALL COMPARED TO
OTHER DEVELOPING COUNTRIES, IT NEVERTHELESS PROVIDES LIVELIHOODS,
EMPLOYMENT AND INCOME FOR MILLIONS OF WORKERS AND BUSINESS
OWNERS. ALMOST HALF OF INFORMAL-SECTOR WORKERS WORK IN FIRMS
WITH EMPLOYEES. THE ANNUAL ENTRY OF ENTERPRISES IS QUITE HIGH, AS IS
THE NUMBER OF INFORMAL ENTERPRISES THAT GROW THEIR EMPLOYMENT.
THERE IS NO SHORTAGE OF ENTREPRENUERSHIP AND DESIRE TO GROW.
HOWEVER, OBSTACLES AND CONSTRAINTS CAUSE HARDSHIP AND FAILURE,
POINTING TO THE NEED FOR WELL-DESIGNED POLICIES TO ENABLE AND
SUPPORT THE SECTOR, RATHER THAN SUPPRESS IT. THE SAME GOES FOR
FORMALISATION. RECOGNISING THE INFORMAL SECTOR AS AN INTEGRAL
PART OF THE ECONOMY, RATHER THAN IGNORING IT IS A CRUCIAL FIRST STEP
TOWARDS INSTITUTING A “SMART” POLICY APPROACH.
THE SOUTH AFRICAN INFORMAL SECTOR IS SRONGLY EVIDENCE AND DATA-
DRIVEN, WITH SUBSTANTIAL QUANTATIVE CONTRIBUTIONS COMBINED WITH
QUALITATIVE FINDINGS SUITABLE FOR AN ERA OF INCREASED PRESSURE FOR
EVIDENCE-BASED POLICY MAKING AND UTILISES SEVERAL DISCIPLINARY
PERSPECTIVES.
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ANALYSIS AND SYNTHESIS OF DATA
DURING OUR RESEARCH WE DISCOVERED THAT 8\10 BUSINESS OWNERS
STARTED THEIR BUSINESS BECAUSE OF BEING UNEMPLOYED WHEREAS 2\10
STARTED A BUSINESS BECAUSE THEY WANT TO GET AN EXTRA INCOME. 3/10
SAID THAT THEY CONTIBUTE TO THE COMMUNITY BY PROVING THEM WITH
GOODS AND SERVICES THAT FULFILL THEIR NEEDS WHEREBY 7/10
CONTRIBUTE BY CREATING JOB OPPORTUNITIES.
WE ALSO DISCOVERED THAT 5/10 LACK RECORD KEEPING SKILLS WHICH
MAKES IT HARD FOR THEM TO TRACK INCOME AND EXPENSES, 2/10 LACK
TIME AND RESOURCES FOR RESEARCH, MAKING IT HARD TO ACCESS MARKET
INFORMATION AND 3/10 FACE OPERATIONAL DIFFICULTIES DUE TO POOR
MAINTENANCE OF BUILDINGS. ALL 10 OF THEM SAID THAT THEY HAVE NEVER
RECEIVED ANY FORM OF TRAINING THEREFORE THEY LACK SOME OF THE
SKILLS NEEDED TO RUN A BUSINESS.
2/10 SAID THAT THEY NEED TO HAVE COMMUNICATING SKILLS IN ORDER FOR
THEM TO BE ABLE TO COMMUNICATE WITH THEIR COSTUMERS, 4/10 NEED
DIGITAL MARKETING SKILLS INORDER FOR THEM TO UNDERSTAND HOW TO
USE ONLINE ADVERTISING AND 4/10 SAID THEY NEED TO GAIN FINANCIAL
MANAGEMENT SKILLS INORDER FOR THEM TO MANAGE THEIR FINANCES
EFFECTIVELY INCLUDING BUDGETING. 10/10 SAID THAT THE GOVERNMENT
CAN HELP THEM BY OFFERING SKILLS DEVELOPMENT SERVICES.
WE ALSO CONDUCTED A RESEARCH ON THE HOUSEHOLDS WE DISCOVERED
THAT 8/8 USE LOCAL BUSINESSES DAILY SUCH AS SPAZA SHOPS. 7/8 SAID THAT
LOCAL BUSINESSES ARE VERY IMPORTANT TO THEM AND 1/8 SAID THEY ARE
JUST IMPORTANT. 8/8 SAID THAT LOCAL BUSINESSES CONTRIBUTE ON THE
LOCAL ECONOMY IN VARIOUS WAYS. ALL 8 OF THEM SAID THAT THE LOCAL
BUSINESSES PROVIDES GOODS AND SERVICES THAT BENEFITS THEIR NEED
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DATA REPRESENTATION
CONTRIBUTION TO THE LOCAL ECONOMY
15%
1st Qtr
5% 2nd Qtr
3rd Qtr
50% 4th Qtr
30%
1ST Qtr: JOB CREATION
2ND Qtr: PROVIDES ESSENTIAL GOODS
3RD Qtr: INCREASED TAX REVENUE
4TH Qtr: INNOVATION AND ENTERPRENUERSHIP
HOW IMPORTANT ARE THE LOCAL
BUSINESSE
13%
1st Qtr
2nd Qtr
88%
1ST Qtr: VERY IMPORTANT
2ND Qtr: JUST IMPORTANT
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RECOMMENDATIONS AND SOLUTIONS
SOME RECOMMENDATIONS FOR INFORMAL SECTORS ARE TO PROVIDE ACCESS
TO SUITABLE MARKET STALLS, SPACES OR INFRASTRUCTURE TO SUPPORT
THEM. OFFER STORAGE FACILITIES TO HELP THEM MANAGE INVENTORY AND
SUPPLIES. ANALYIZE DATA TO IDENTIFY TRENDS, OPPORTUNITIES AND
CHALLENGES FACING INFORMAL SECTORS. THE GOVERNMENT SHOULD
ENGAGE WITH STAKEHOLDERS, INCLUDING INFORMAL BUSINESS OWNERS.
THE GOVERNMENT MUST COLLECT DATA ON INFORMAL BUSINESSES TO
BETTER UNDERSTAND THEIR NEEDS AND CHALLENGES. THEY MUST PROVIDE
TRAINING PROGRAMS TO ENHANCE BUSINESS SKILLS AND MARKET ACCESS.
THE GOVERNMENT CAN MINIMISE THIS BY PUTTING INPLACE HEALTH
GUIDELINES FOR INFORMAL TRADERS. FORMAL BUSINESSES CAN ALSO WORK
WITH SMALL INFORMAL BUSINESSES AS THEIR OUTLETS OR DISTRIBUTORS OF
ESSENTIAL GOODS TO PEOPLE’S DOORSTEPS.
AFTER ALL THE RESEARCH THAT HAS BEEN CONDUCTED WE ACCEPT OUR
HYPOTHESIS WHICH STATES THAT INFORMAL SECTORS PLAYS A PIVOTAL ROLE
IN THE LOCAL ECONOMY OF MADADENI. IT IS FOR ALL THE AFORMENTIONED
REASONS WE FIRMLY ACCEPT OUR HYPOTHESIS. DURING THE RESEARCH WE
DISCOVERED THAT THESE INFORMAL SECTORS CREATE JOB OPPORTUNITIES.
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BIBLIOGRAPHY
1. [Link]
2. [Link]
3. [Link]/news/blog
4. [Link]
5. [Link]
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