This paper presents the findings of a small area census of micro-enterprises undertaken in five Cape
Town townships in 2010-2012. The research identified 4273 micro-enterprise activities in Browns
Farm, Delft South, Imizamo Yethu, Sweet Home Farm and Vrygrond. The research method also
included enterprise surveys in key sectors (liquor, spaza, educare, traditional healers, hair salons),
ethnographic observation and visual recording, interviews and participatory engagements with
specific groups. The research has supported several papers and published articles that have
examined the micro-enterprise dynamics and business practices in particular sectors. This paper
outlines an overall perspective and synthesis of the diversity, intensity and relative frequency of
informal businesses across the five sites and individually.
The paper address four questions: One, in what ways can a small area research approach add value
to current understanding of the South African informal economy? Two, what is the scope and scale of
micro-enterprise activities in the township context in different sites? Three, what is the spatial
distribution of micro-enterprises in particular sites and business contexts (for example, the high street
versus residential sites)? Four, what is the influence of variables such as settlement history, housing
type and population structure on these outcomes?
Liquor retail, grocery retail (spaza shops) and house shops accounted for 46% of the identified microenterprises.
Food and liquor retail predominance is evident across all sites, though liquor retail is
more pronounced in informal settlements. There is notable variance between the five sites in the
range of business types and proportionality. The spatial distribution of businesses highlights the
distinct dynamics of the high street as a business location which, in contrast to residentially-based
enterprises, is a more important location for certain services such as hair salons and fast food take
away. We conclude that the research method and outcome are of relevance to development policies
which seek to build on the organic foundations of township micro-entrepreneurship.