Original Research
The effect of financial capital on inner-city street trading
Journal of Economic and Financial Sciences | Vol 5, No 1 | a307 |
DOI: https://doi.org/10.4102/jef.v5i1.307
| © 2018 Chris Callaghan
| This work is licensed under CC Attribution 4.0
Submitted: 28 June 2018 | Published: 30 April 2012
Submitted: 28 June 2018 | Published: 30 April 2012
About the author(s)
Chris Callaghan, School of Economic and Business Sciences, University of the Witwatersrand, South AfricaFull Text:
PDF (253KB)Abstract
This study extends and tests conceptions offered by the nutrition model of efficiency wage theory into the informal street-trading context. Three street-trader samples from 2008, 2009 and 2010 were drawn from the Johannesburg city centre. Statistical parametric and non-parametric analysis was used for a longitudinal investigation of certain associations of initial investment, or the money investments of street traders at start-up. Partial correlation analysis was used for further analysis of the 2010 sample. Findings suggest that policymaker interventions might best target traders earning under a threshold of earnings of about R230 per day. More specifically, training might offer such traders insight into how to change their product offerings to products associated with higher returns. Further, any interventions that might raise street-trader earnings above this threshold might enable such traders to obtain a positive return on capital invested in the sector.
Keywords
informal sector; initial investment; street traders; earnings; satisfaction
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