Abstract
A survivalist business is a type of business that is not considered to have a potential to generate income and to provide employment. The existence of such businesses is often crushed by literature as they are perceived to be businesses that are doomed for failure. Furthermore, governments around the world fail to support and recognize their existence within their structures. This paper highlights the ability of the survivalist businesses to generate jobs for family members as well as income that improves their socio-economic status. The sample in the study consisted of 100 survivalist entrepreneurs from the five districts of the Free State province, South Africa. Heterogeneity sampling was used in the absence of a sample frame. Using a T-Test, the monthly income of the participants was compared to the minimum wage rate set by the government to be earned by employees, stipulated in the South African minimum wages as set out in the basic conditions of employment act no. 11 of 2002, particularly focusing on the amendments of sectoral determination 9: wholesale and retail sector in South Africa. A correlation matrix was utilized to investigate the reason for indulging into the survivalist businesses. Results indicated that the mean monthly income of the survivalist entrepreneurs was more than that stipulated in the basic conditions of employment act. Their educational qualifications were above the standard set by the existing literature. It was concluded that survivalist enterprises are an income and job generating alternative for the unemployed populace. DOI: 10.5901/mjss.2015.v6n4p301
Highlights
South Africa is faced with socio-economic challenges that many African countries experience after being liberated
Unemployment has become an issue that affects individuals who are equipped with the education and knowledge that was considered appropriate for formal labour markets in the past. This is made evident by the increasing statistics of the relatively well educated individuals, who are practising as survivalist entrepreneurs in the absence of formal employment in the Free State province and South Africa as a whole
To explore whether survivalist enterprises are income generating alternatives for the unemployed populace, a one sample t-test was used to test the assumption of the null hypothesis that the sample mean income earned by survivalists is equal to the minimum wage rate set by the government to be earned by employees, working as shop assistants, stipulated in the South African minimum wages as set out in the basic conditions of employment act no. 11 of 2002, focusing on the amendments of sectoral determination 9: wholesale and retail sector in South Africa
Summary
South Africa is faced with socio-economic challenges that many African countries experience after being liberated These include increasing poverty and unemployment rates. The declining levels of economic activity further lead to increasing dependency on self- employment as a survival mechanism In this case selfemployment has become a buffer, providing families with an alternative source of income in South Africa. The dropping formal sector employment brought about by economic decline, led to increasing competition within the labour markets This pushed those at the bottom of the employment queue to self employment as survivalist entrepreneurs in an attempt to survive. There is a link between the formation of survivalist businesses and the poverty and unemployment rates
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