black entrepreneurship and informal housing south africa
TRANSCRIPT
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Black Entrepreneurshipand
Informal Housing
South Africa
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Laws Inhibiting Black Entrepreneurship
Colonial Era : Serfdom? Apartheid : Separation State monopolies
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Cultural Factors Inhibiting Black Entrepreneurship
Traditional/Rural sanctions against wealth accumulation
Considered “legitimate target” of theft and violence
Police raids and intimidation For black graduates, civil service is a safer
choice
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Seven Categories of Black Entrepreneurship
Listed Companies : “Black Chips” Heavy ownership by unions Formed Preemptively by white companies Spinoffs of less profitable operations Joint venture by industry to create a
competitor
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Seven Categories of Black Entrepreneurship
Potential Listed companies Often politically connected Often Joint Ventures with foreign
companies
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Seven Categories of Black Entrepreneurship
Portfolio Investment Trusts Also heavily union funded Buy companies as well as stocks
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Seven Categories of Black Entrepreneurship
Black Women Investors Same as PITs, but funds raised from
women Possible rural focus : agriculture, tourism
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Seven Categories of Black Entrepreneurship
Medium, Small, and Micro Enterprises 200 or fewer employees Most formed during apartheid, to provide
services to black townships Sectors: taxi, retail, construction, garment
manufacture Only 20% are growing businesses
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Seven Categories of Black Entrepreneurship
Informal Sector Often food-related Low barriers to entry Immigrant competitors
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Seven Categories of Black Entrepreneurship
“Political Entrepreneurs” Often a partnership with foreign investors Partner brings no business experience Qualifications : prison time Sectors : franchising, technical contractors Some supported by USAID
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Top Down vs Bottom Up Top Down : replace white managers,
owners, directors on a “quota” basis Problem : corruption Problem : whites still needed for technical
functions 1994 example : 14,000 accountants
(65 black accountants)
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Top Down vs Bottom Up Bottom Up : government support for the
informal sector Problem : hyper-competitive environment Problem : insufficient education to manage
a larger enterprise
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Top Down vs Bottom Up Editorial “Expand the pie” What will it take to attract foreign
employers? How can a small or medium enterprise
increase its employment?
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EducationQuantity vs. Quality
South Africa Malaysia
No Education 29% 27%
Some Primary 11% 16%
Full Primary 19% 21%
Some Secondary 26% 20%
Full Secondary 14% 14%
Degree 1.6% 1.3%
Adult Literacy 46% 74%
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Cato ManorHistory
1930s partitioned by Mr. Cato, who sold lots to Indians
After WW2, Indians sublet to black tenants 1949 violence between tenants and Indians 1950s / early 60s bulldozed, zoned for
white development
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Cato ManorHistory
Development halted by CMRA, an organization of former Indian owners
Unoccupied until late 1980s, when squatters moved in
1990s influx : close to city center 1990s influx : ANC stronghold safe from
Inkatha - ANC violence
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Pictures from Cato Manor
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Pictures from Cato Manor
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Cato Manor Development Association
Concentrated building efforts on unoccupied land
Mistrusted in squatter settlements due to corruption
CMDA would lose jobs if project complete Embezzlement, selling lot numbers,
nepotism
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The Taxi Wars Taxis initially reluctant to service area Profitable route due to short runs Taxi service taken over by 15-20 former
ANC guerillas Extortion of residents for “protection” Driven out by former taxi outfit and locals All community structures destroyed
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Habitat for Humanity Houses in Cato Manor
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Suspicious Charactersin Cato Manor
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“In Situ” Upgrading of Informal Settlements
Applying a Brazilian model to Cape Town Both: cities are largely formal with
peripheral informal settlements Both: technical professionals available for
GIS implementation Brazil: informal settlements built of more
permanent materials
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Bureaucracy Black and white councils (transition period) City, metropolitan, and provincial
governments Duplicate political and administrative
positions Delays of 18 months to 4 years Reluctance to adopt the “In Situ” concept
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Rural Zulu Housing
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Rural Sotho Housing
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Rural Government Housing
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Urban Informal Settlement
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GIS Allows rapid updates in dynamic situations Design access network for foot traffic Visual demonstration for those in flood area Existence of a “formal” plan reduces
resistance by neighbors Lot number on a plan gives feeling of
security to residents
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Flooding in Cape Town?