Spaza Shop Research Articles

Spaza Shops in Townships and Rural Areas to Switch to Electronic Payment Method to Run the Business Successfully and Safe: Case Study Mkhuhlu Township, Bushbuckridge Municipality, Mpumalanga In South Africa

The purpose of this study was to investigate whether spaza shop (tuck shop) owners in South Africa utilise mobile communication technologies. Secondly, it evaluated opportunities created using mobile communication. Interviews were conducted with 110 small, micro- and medium enterprises (SMMEs) operating spaza business shops in Mkhuhlu and Calcutta in the Bushbuckridge Municipality in Mpumalanga. Police officers, residents of South Africa, Somalians and Indians were interviewed. Data were collected through self-completion questionnaires. Interviews were conducted in English as most of the races did not understand an African language. Findings more technical and Technological skills are needed for the township business owners. Safety and security must support SMMEs in townships by protecting their owners and their resources against criminals.

Fake-talk and the Spaza Shop: A Fake Food Furore and the Spectre of Public Health Emergencies in South Africa

At the end of August 2018, a controversy erupted in South Africa. Accusations of potentially poisonous ‘fake food’ had been circulating on social media for a month or so, and by early September reports were common on South African news programmes. Accusations fell at the door of foreign-run spaza shops (convenience stores), some of which were looted and their shopkeepers harmed. Many commentators read these events as another outbreak of the xenophobic violence that has flared up across South African townships for more than a decade. Our reading is different. In this Research Article, rather than dismissing accusations of fake-ness as merely a pretext for popular protest and violence, we tackle the question of what work ‘fake-talk’ does. We show that in this instance, accusations of fake-ness brought a distinctive urgency to events, framing what might otherwise have been seen as concerns about inequality in the language of a public health crisis. In response, a state normally hesitant to act on citizens’ long-standing complaints about ‘the duplicity of foreigners’ intervened with a new speed and decisiveness. ‘Fake-talk’, we conclude, is an important site of inquiry because of how it may enable certain actions, regardless of whether suspicions are founded.

A case study of the Adoption of Electronic Payment Methods by Spaza Shop owners in Mkhuhlu Township in South Africa

Purpose: This study aims to investigate the usage of mobile technologies by spaza shop (tuck shop) owners in South Africa. It also evaluates opportunities created using mobile communication.
 Methodology: Interviews were conducted with 110 small, micro, and medium enterprises (SMMEs) operating spaza business shops in Mkhuhlu and Calcutt in the Bushbuckridge Municipality in Mpumalanga, South Africa. Police officers, South Africans, Somalians, and Indians were interviewed. Data was collected through self-completion questionnaires. Interviews were conducted in English as most participants needed help understanding African languages.
 Main Findings: Technological skills are needed for the township business owners. Safety and security must support SMMEs in townships by protecting their owners and resources against criminals. Spaza shop owners must invest in training to advance their business skills and advance in technology to do business.
 Implications: Aligned to the Native-owned spaza shops in the selected townships, informal traders, related businesses, other townships, academics, and policymakers may draw vital lessons from this study
 Novelty: First time this kind of study is being conducted at Bushbuckridge Municipality with spaza shop owners.

Sustaining the Township Economy: An Investigation into the Factors Influencing the Shopping Experience of Spaza Shop Customers in South Africa

The township economy supports many South Africans by creating employment and reducing the socio-economic challenges facing the country. To ensure sustainable growth of the sector, research is required on key businesses within the informal economy. This study empirically investigated the factors influencing the shopping experience of spaza shop customers in South Africa. Spaza shops, an under-researched South African context, continue to expand in various townships and serves as retail outlet where consumers purchase their daily products and services. The study embraced a quantitative research design. A self-administered questionnaire was employed to collect the data for the study. The target respondents include customers who were older than 18 years and had previously purchased from spaza shops. Respondents were selected using convenience sampling. The questionnaires were distributed to six townships in South Africa. 185 usable questionnaires were included in the data analysis. The empirical results provided evidence that supports the existence of statistically significant positive correlations between five independent experience factors, namely: esthetic, distinctiveness, cognitive, affective and social; with customer experience (dependent variable). Additionally, three of the five experience factors (social, affective and cognitive) are significant predictors of customer experience in the context of this study. Based on the identified factors, several recommendations are made for improving customer experience in a spaza shop context. Recommendations made are expected to enhance the competitiveness of spaza shops thereby enabling them to increase their contribution to employment creation and national Gross Domestic Product.

The Spatial Evolution of Spaza Shops since the Inception of the Special Economic Zone (SEZ) in Saldanha

The aim of this paper is to establish the link between the official announcement of the Saldanha Special Economic Zone (SSEZ) and consequently the gradual concentration of foreign traders and the steady fading of native residential spaza shop owners. This research focus on the existing literature on informal trading in Africa and specifically on micro level. Special prominence is given to the entrepreneurial culture of both the foreign and residential informal traders. Informal trading forms a substantial component of any economy in providing employment, secure sustainable livelihoods and income for millions of workers and business owners. Research in South Africa lack the aptitude to investigate and divulge the root causes of informal trading and how informal trading contributes to individual and household income, and to lay the platform for policy formation and intervention. This article envisages the major informal trading structures in Saldanha town, the underlying cause (-s) of doing business and its socio-economic impact on individuals, households, and the community. Central to this study will be the identification of various informal institutional economic activities and the situation, its evolution, their contribution to individual and household survival, and their relationships with the formal economy. The research followed a mixed methods approach (the combination of qualitative and quantitative methods). The application of semi-structured interviews, focus group and follow-up discussions reveals the deeper perceptions of doing business and their means to survival, despite current challenges of Covid-19 and evolving competition challenges. In contrast, the quantitative methods deal largely with the questions of “what” or “how many”.

The dynamics of indiscriminate/ illegal dumping of waste in Fisantekraal, Cape Town, South Africa

Indiscriminate dumping may be considered a ‘wicked problem’, as it is regarded as a complex, intractable, open-ended problem and it includes rights-based and justice issues. An understanding of the dynamics of indiscriminate dumping may assist with improving the management of indiscriminate dumping. The results show that indiscriminate dumping in Fisantekraal is a serious threat. From the first round of data collection to the last, no dumpsite disappeared despite the efforts of the community to clean up each month. Rather, the formation of new dumpsites and the extension of a few existing ones were evident. The morphology composition of the waste suggests that the main dumpers are the households and spaza shop owners. Conversations and collaboration between the authorities and community are encouraged in order to explore solutions to indiscriminate dumping.

Association between Selected Food Purchase Practices, Physical Activity and Sociodemographic Factors among People Living in a Low Socioeconomic Peri-Urban and Rural Area of South Africa

Introduction: This study examined the association between sociodemographic factors, Physical Activity (PA) engagement, and the selected Food Purchasing Practices (FPP) among people living in a low socioeconomic peri-urban and rural area of two provinces of South Africa. Methodology: Four hundred participants were randomly selected from two communities, a township in Cape Town and a rural community in the Eastern Cape where the Prospective Urban and Rural Epidemiological (PURE) study was implemented. Data collected included socio-demographic characteristics, FPP and PA. Logistic regressions were performed to identify the associations between sociodemographic factors, PA involvement and selected FPP, and Odds Ratios (OR) were calculated with 95% Confidence Intervals (CIs). All statistical tests were two-tailed at p<0.05. Results: A large percent, 76.3% were females and 23.8% were males. Compared to participants aged ≥55 years, those within the age range of 25-54 years were more likely to travel with motorised transport (OR= 4.7; 95% CI=2.6, 8.3; p < 0.001) compared to walking to grocery shop. None-to-low education and with monthly income of <R2000 were more likely to purchase groceries at the supermarkets (OR= 2.7; 95% CI=1.4, 5.0; p < 0.05) and (OR= 2.4; 95% CI=1.1, 5.1; p < 0.05) compared to spaza or small informal food shop, respectively, while those who engage in PA were less likely to purchase groceries at the supermarkets (OR= 0.36; 95% CI=0.2, 0.8; p < 0.05). Conclusion: Some demographic factors and PA have an influence on FPP among people living in a low socioeconomic peri-urban and rural area of two provinces of South Africa. This might be an area to be focused on for public health interventions which could be directed at supporting adequate FPP among people, especially in low socio-economic areas.

A qualitative study of the attitudes of South African spaza shop owners to coopetitive relationships

Background: Coopetition is a powerful means by which microenterprises can compete against large firms in low margin sectors, such as the small retail outlets in South African townships, known locally as spaza shops. Although coopetition is widely used by foreign nationals who own and manage such shops, and who are reported to be more successful, South African owners have failed to establish such relationships. Objectives: The objective of this study was to explore the reasons why South African owners do not form such relationships Method: The study used a qualitative, exploratory approach. Results: An absence of trust and a general lack of awareness of the potential benefits of coopetition are the major barriers. Moreover, the volatile environment within which these spaza shops operate, characterised by extensive unemployment and high crime rates, and makes the establishment of coopetitive relationships more difficult. Conclusion: Any intervention designed to improve the survival rate of spaza shops should include measures to address issues of trust and the benefits of coopetitive relationships.

The influence of selected demographic factors on the choice of marketing communication tools: Comparison of foreign and local spaza shop owners in South Africa

Orientation: The continued proliferation of foreign-owned spaza shops in South African townships presents intense competition between local and foreign owners, with evidence that foreign spaza shop owners are more likely to use marketing communication tools than local spaza shop owners. Research purpose: The main purpose of this study was to compare the influence of selected demographic variables (education, age of business and owner’s experience) on the choice of marketing communication tools between foreigners and locals who own spaza shops in South Africa. Motivation for the study: This study was motivated by a lack of insight in comparing the use of marketing communication tools between foreigners and local spaza shop owners. Research design, approach and method: A descriptive, cross-sectional comparative research design was adopted, where a convenience non-random sample of 236 spaza shops owners, both foreign and local ones in the Free State Province, was analysed using four-way analysis of variance. Main findings: The results of the study revealed that foreign spaza shop owners are more influenced by selected demographic factors to use marketing communication tools than South African spaza shop owners. Practical/managerial implications: Given that foreign owners are more influenced by demographic factors to use marketing communication tools to outperform their counterparts, the study highlights the need to support local spaza shop owners for continued sustainability. Contribution/value-add: This study added knowledge by exploring untested comparison of demographic variables influencing the use of marketing communication tools in spaza shop businesses.

Are South African Spaza Shops Use Marketing Communication Tools to Promote Their Businesses

<p>The aim of this conceptual research was to establish whether Soweto spaza shops use marketing communication tools to promote their businesses. This research undertook qualitative research method and exploratory research design and was essentially textual as numerous literatures were consulted.</p>The conducted research established that the top five most regularly used marketing communication methods are direct sales, ‘word-of-mouth’, point of sale materials; networking and newspaper advertisement. The least regularly used marketing communication methods are YouTube, television, direct mail, press releases and coupons/ vouchers. Therefore, the consulted references agreed that although limited marketing communication methods are used by spaza shop owners. The study concludes that South African spaza shops use marketing communication tools to promote their businesses.

Problems Experienced by Immigrant Spaza Shop Owners in South Africa

AbstractImmigrant-owned spaza shops impact positively on the economic development of South Africa. The study investigated the problems that are perceived by immigrant spaza shop owners as negativel...

The Financial Self-efficacy of Spaza Shop Owners in South Africa

The objective of the study was to investigate the financial self-efficacy of the owners of spaza shops in South Africa. Financial self-efficacy is about an individual’s self-confidence to carry out...

Entrepreneurial Orientation of Spaza Shop Entrepreneurs Evidence From a Study of South African and Somali Owned Spaza Shop Entrepreneurs in Khayelitsha

Almost twenty years after democracy we find growing economic activity in the informal sector. The spaza market in Khayelitsha 1 can be seen as an example of entrepreneurial activity offering an entry point to many that are excluded from mainstream economic activities. This study included 352 participants and is comprised of South African (locals) and Somali (foreigners) owned spaza shop entrepreneurs operating in Khayelitsha. In recent years foreigners have become a dominant force in this market often resulting in the closure of many local businesses. This has often given rise to xenophobic violence resulting in deaths of innocent persons. We focus on the role of culture on business practices and entrepreneurial orientation on business performance. Entrepreneurial orientation is used as a psychological concept to reflect on the level of entrepreneurial potential within the informal sector. Business practices include rudimentary financial management practices that provide a measure of financial stability of the business.

Operational Research(ers) in development: Growing a new generation of operational researchers

This paper explores the theme of training operational research (OR) practitioners in South Africa by critically evaluating a Masters program in Operational Research in Development (ORD), launched in 2005 at the University of Cape Town. This program was specifically focused on applying OR to the problems of the developing world in general and Africa in particular. We describe the program and review the practical work undertaken by students participating in the program. Topics range widely across domains including health (antimalarial drug resistance); poverty (food banking); governance (NGO management structures and monitoring of local government performance) and sustainable livelihoods (spaza shop operations). We use the review to highlight strengths and weaknesses of the program, as well as challenges faced in the OR education in South Africa at a postgraduate level.

Exploring the management abilities of spaza shop owners in the Nelson Mandela Metropolitan Municipality

South African entrepreneurs have a poor skills record, which often leads to business failure. To effectively manage a spaza shop requires applying management functions and some management skills. The implementation of simple systems can assist spaza shop owners to manage their businesses more successfully and even grow. A quantitative study was done, by interviewing sixty spaza shop owners in the township. The empirical results identified the gaps in the management abilities of spaza shop owners in terms of the eight management functions and show that the purchasing, financial and information management function is the most neglected. Guidelines on how each of the functions could or should be applied are given. This research clearly indicates that spaza shops can assist in economic growth and relieve unemployment in the country.

Challenges of small family groceries shops in South Africa

It is estimated that the failure rate of small, medium and micro enterprises (SMEs) is between 70 per cent and 80 per cent. Millions of Rands are being lost on business ventures because of essentially avoidable mistakes and problems. It is maintained that often the ideas are good and the people behind them are competent, but “they do not have a clue of how to run a business” and have no underlying appreciation of business fundamentals. Problems encountered by small businesses are numerous and can be described amongst others as being environmental, financial or managerial in nature. The objective of this chapter is to establish to what extent owners/managers of spaza shops (small family businesses) in a typical South African setting, experience selected problems or issues as negatively influencing the success of their small business. The spaza shop is as a small family owned business who sells goods from home in the black suburbs of South Africa. Spaza is a Zulu word meaning “hidden” or “camouflaged”. As a result of strict legislation in the past, spaza shops traded in secret. Up to January 1989, spaza shops were illegal, but were then legalised on condition that they obtained a trading licence (Marketing Mix 2000:12). Further to this, the aim is to investigate whether relationships exist between these problem categories and selected demographic factors. A questionnaire was constructed and judgment sampling was used to solicit the responses of 300 spaza shops. The following were identified as the most prominent problem areas influencing small businesses in the Gauteng area of South Africa namely, economic factors, competition, socioeconomic problems and change. Significant relationships were identified between demographic variables such as management qualification and background of the respondent and certain problem categories.

Malls in Zambia: Racialised retail expansion and South African foreign investors in Zambia

Abstract

THE SPAZA SHOP: SOUTH AFRICA′S FIRST OWN BLACK RETAILING INSTITUTION

The formal business sector in South Africa failed during the past decade to create new job opportunities. In fact it experienced a decline of approximately 20,000 job opportunities. Most people becoming unemployed experimented with some form of trading in the informal sector because of limited skills and knowledge required for informal trading. The spaza shop, a shop with limited floorspace operated from a residence in a black township, is a new retail form born out of these circumstances. Today spaza shops handle vast turnovers and their existence cannot be overlooked by companies marketing consumer products. The spaza shop has become a prominent member of the distribution channel within a short time. The reason for the acceptance and success of spaza shops is found in the essence of the marketing concept. Not only is it located near the consumer, but it also offers convenience in respect of trading hours, products offered, prices asked – all of which are aimed at need satisfaction. Spaza shops will rema...