index.php?action=ajax&rs=GDMgetPage&rsargs=Parte5 2020 Journal of Private Enterprise Vol 35 No 4 Winter.pdf&rsargs=1 62 M. Residents living in these settlements therefore find it extremely difficult to This state of affairs created its own problems as it exacerbated unemployment, resulting in higher crime and violence in these townships. Although formal segregation ended with the new democracy in 1994, many township residents and businesses are denied effective access to basic public and social services, such as running water, electricity, public transport, medical care, and education. These underdeveloped residential areas were established close to whites-only areas in order to supply the required workforce for the white areas - without having to integrate the living areas. Introduction The term “ township ” is commonly used in South Africa to describe the underdeveloped and primarily urban or designated segregated urban living areas that were established during apartheid and were reserved for nonwhites ( Africans, Coloreds, and Indians ) in South Africa who worked in areas that were classified as white only ( Pernegger and Godehart 2007, p. _ JEL Codes : O50, M31, M38 Keywords : developing country, SMMEs, law, marketing, regulations, South Africa I. It is therefore imperative for the government to implement strategies to assist South Africa ’ s small, medium, and micro enterprise ( SMME ) owners with legal processes in order to create a more enabling operating environment in townships. This sector contributes up to 20 percent of the South African economy and holds the key to improving the quality of life of residents who live in informal settlements, as small businesses have the ability to create jobs. index.php?action=ajax&rs=GDMgetPage&rsargs=Parte5 2020 Journal of Private Enterprise Vol 35 No 4 Winter.pdf&rsargs=0 The Journal of Private Enterprise 35 ( 4 ), 2020, 61 – 70 Legal Factors Affecting the Establishment of Township SMMEs in South Africa : Are They Killing Small Businesses ? Michael Cant University of South Africa _ Abstract Small businesses are widely considered to be valuable assets for any economy.
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