Formal retail as a strategy to enhance the quality of life in marginalized communities

[摘要] ENGLISH ABSTRACT:Of all the strategies available to help eradicate poverty and enhance the quality of life ofpeople living in marginalized communities, the provision of a formal retail centre wouldnot stand out as a number one strategy. Nevertheless, the Nomzamo Business Centre wasbuilt as part of a local economic development initiative to help local businesses todevelop.The primary goal of this study was to establish whether the residents of Nomzamoperceived the development of the centre as a contributing factor towards improving thequality of their lives. Although the retail sector is well represented in these marginalizedcommunities, in the form of spazas and other informal businesses, these businessesdesperately lack the bearings of formality. The Nomzamo Business Centre provides aformal business premises at affordable rates, for local business people and gives them theopportunity to develop skills through business training courses and the provision ofinformation.As the study concludes, the residents of Nomzamo perceived the centre as anenhancement towards their quality of live, even though many of them still do not makeuse of the centre. Established shopping habits are hard to brake especially if the centredoes not provide any real magnetism. The centre failed to attract an anchor tenant andalthough Eskom's presence at the centre does provide some form of attraction, thebenefits have not yet spilled over to the other shops.At this stage the Nomzamo Business Centre cannot be deemed a success. The centre failsto compete with local informal businesses. What is needed in most of these communitieshowever is a change in the local economic structure. Local economies in most cases areretail based, with no or little representation in sectors like manufacturing. Although theNomzamo Business Centre will not contribute much towards a more balanced localeconomy, it does provide the foundation for future changes to take place.

[发布机构] Stellenbosch University