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Microenterprise, Multinational Business Support, and Poverty Alleviation in South Africa's Informal Economy

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  • Douglas Woodward
  • Robert Rolfe
  • André Ligthelm

Abstract

The authors examine corporate programs that support microenterprise development in Africa. Specifically, the analysis assesses the extent to which local income and sales are affected by Coca-Cola's initiatives to assist South Africa's microenterprise in the retail trade sector. To quantify the impact, questionnaires were obtained from owners of small-scale retail establishments in the country's vast informal economy. Regression analysis is performed on key variables from the survey, testing hypotheses advanced to explain the size of an owner's income and sales. In addition to business development support, the explanatory variables include startup capital, size, and male/female ownership. It appears that business development support has a positive effect on lifting income and reducing poverty for microenterprise owners, after controlling for other influences.

Suggested Citation

  • Douglas Woodward & Robert Rolfe & André Ligthelm, 2014. "Microenterprise, Multinational Business Support, and Poverty Alleviation in South Africa's Informal Economy," Journal of African Business, Taylor & Francis Journals, vol. 15(1), pages 25-35, April.
    • Handle: RePEc:taf:wjabxx:v:15:y:2014:i:1:p:25-35
    DOI: 10.1080/15228916.2014.881225
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    References listed on IDEAS

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    1. Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zoë McLaren & Ingrid Woolard, 2008. "Why has unemployment risen in the New South Africa?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 715-740, October.
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