The role of the minibus taxi industry in promoting the development of small businesses in South Africa : a case of Mankweng Taxi Association, Limpopo Province

Abstract

This study focuses on the role of the minibus taxi industry in promoting the development of small businesses at Mankweng taxi ranks. This area of study has not been thoroughly researched; therefore, existing literature on the role of the taxi industry in promoting the development of small (especially informal) businesses is limited. This lack thereof does not help in casting a clear sense of how the taxi industry benefits small businesses around their operation centres. Therefore, this study specifically investigated the role of the minibus taxi industry in promoting the development of small businesses at Mankweng Taxi Ranks. Both quantitative and qualitative research methods were employed, with the use of structured questionnaire and focus group interviews as techniques to collect data from Mankweng Taxi Ranks. The study had a target population of 300. Stratified random sampling was chosen for small businesses while random sampling was employed for taxi operators, and purposive sampling was applied for employees at Mankweng main taxi offices. This study had a sample size of 300, sampled differently with 180 participants forming part of stratified random sampling and 110 participants forming part of random sampling. Two different questionnaires were prepared for both small businesses and taxi operators. Questionnaires were randomly distributed to small businesses (30 hawkers, 15 filling stations, 69 street produce sellers, 15 car washers, 15 restaurants, and 36 caterers) and 110 taxi operators at different taxi ranks such as Mankweng, Boyne, Ga-Mothapo, Solomondale and Dikgale. Additionally, the focus group interviews were purposively conducted with 10 employees working at Boyne, as it is the main office of the Mankweng Taxi Association, and they hold more administrative information relating to the taxi business. The findings of the study show that, the taxi industry play a significant role in promoting the development of small businesses. The study further reveals that, poor business plans, inadequate working conditions, taxi violence, reckless driving, and a lack of funding affected the investigated businesses, as well as lack of exposure to new products, confronted the Mankweng Taxi Association. There seems to be a huge gap, both in research and government policy, that, seeks to promote the development of small businesses depending on the environment, and infrastructure, in which these businesses operate. Additionally, this study reveals the nature of the taxi industry and its crucial role in benefiting small businesses. All stakeholders in the taxi industry need to create an environment that, encourages the spirit of harmony, active cooperation and development dedicated to the betterment of the taxi industry.