black entrepreneurship and informal housing
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Black Entrepreneurship and Informal Housing. South Africa. Laws Inhibiting Black Entrepreneurship. Colonial Era : Serfdom? Apartheid : Separation State monopolies. Cultural Factors Inhibiting Black Entrepreneurship. Traditional/Rural sanctions against wealth accumulation - PowerPoint PPT PresentationTRANSCRIPT
Black Entrepreneurshipand
Informal Housing
South Africa
Laws Inhibiting Black Entrepreneurship
Colonial Era : Serfdom? Apartheid : Separation State monopolies
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
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
Seven Categories of Black Entrepreneurship
Potential Listed companies Often politically connected Often Joint Ventures with foreign
companies
Seven Categories of Black Entrepreneurship
Portfolio Investment Trusts Also heavily union funded Buy companies as well as stocks
Seven Categories of Black Entrepreneurship
Black Women Investors Same as PITs, but funds raised from
women Possible rural focus : agriculture, tourism
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
Seven Categories of Black Entrepreneurship
Informal Sector Often food-related Low barriers to entry Immigrant competitors
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
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)
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
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?
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%
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
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
Pictures from Cato Manor
Pictures from Cato Manor
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
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
Habitat for Humanity Houses in Cato Manor
Suspicious Charactersin Cato Manor
“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
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
Rural Zulu Housing
Rural Sotho Housing
Rural Government Housing
Urban Informal Settlement
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
Flooding in Cape Town?