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Hindrances to Self-employment Activity: Evidence from the 2000 Khayelitsha/Mitchell's Plain Survey

Year: 2005
Working paper number: 131
Author: Cichello, Paul
Unit: SSU
Abstract:

The 2000 Khayelitsha/Mitchell's Plain (KMP) Survey offers a unique view into the hindrances to self-employment activity in the KMP area.  Respondents identify a lack of money/capital as the primary barrier to participation and hours worked in self-employment activities.  Concerns over expected profit, while present, are not a dominant hindrance.  A lack of skills, concerns over future access to formal jobs, and other "hidden" costs also play a role in limiting self-employment activities, though these are far less important than issues related to capital constraints. Further research is needed to identify whether capital constraints are tied to a lack of access to start-up capital or a lack of demand for borrowing due to ex-ante risk management strategies.


Publication file: wp131.pdf
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