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Turning townships into vibrant economic hubs

Theo Garrun

27 January 2010 at 06h00

The answer to the unemployment problem, it is said, lies in entrepreneurship and the creation of small businesses.

Bu even if it were that simple, the chances of those new jobs going where they were most needed - into the most disadvantaged and poverty-stricken areas - are slim.

Economic activity thrives where there is other economic activity already, and townships and disadvantaged communities have, by design, been historically excluded from commercial activity.

The creation of the townships was premised on racial separation and they remain pockets of labour and poverty on the fringes of cities.

"Soweto spends about R12-billion a year and only 24 percent circulates in the township," says Thami Mazwai, the director of the Centre for Small Business Development (CSBD) at the University of Johannesburg, Soweto campus.

The challenge is to turn townships into vibrant economic hubs that will contribute to socioeconomic development and political stability.

In response to this, the CSBD has set itself the task of contributing to the growth of entities in these communities.

This will be the key issue at the first international conference on entrepreneurship and small business development, to be held in Soweto on Thursday and Friday.

The conference is a joint venture between the CSBD and the Wits Business School's Centre for Entrepreneurship. The theme is "Transforming Townships into Economic Powerhouses", and the aim is to stimulate innovation and knowledge creation in township entrepreneurship.

Speakers from overseas and local universities will present papers alongside township business leaders and local policymakers. The discussions will be a mix of what is happening, what has worked elsewhere and what could work in the future.

Presentations will centre on several international and local research papers with international topics including social entrepreneurship as a force for welfare and prosperity in social settings and very small businesses and local economic development.

Local subjects will include topics like the potential in the informal sector and barriers perceived and experienced by small, micro and medium enterprises in Mamelodi.

Others will address women and youth entrepreneurship.

The broad outline of the conference includes: determinants of successful entrepreneurship in townships and disadvantaged communities; ICT enhancing entrepreneurship in townships and disadvantaged communities; tourism stimulants in townships and disadvantaged communities; retailing to advance entrepreneurship in disadvantaged communities and business co-operatives and incubation in townships and disadvantaged communities.

A highlight will be the unveiling of the Gauteng Department of Economic Development's strategy for small business and economic development.

• For more information, call Wendy Mokaba at 011 537 9000 or e-mail wendym@globalinterface.co.za

Source: The Star