The operation of informal motor vehicle mechanic small enterprises in the Tzaneen Central Business District, Limpopo Province

Abstract

The positive role and fundamental contribution of SMMEs on a global and national level is key to economic growth. Various perspectives and opinions exist in terms of the role, extent and nature of the contribution made by SMMEs in the local economy. The main aim of this study was to investigate ways in which the informal motor vehicle mechanic businesses operating in Tzaneen CBD can be assisted to become formalised businesses for long-term sustainability and contribution to the local economy. The research was qualitative in nature. Group interviews were conducted with motor mechanics operating opposite Tzaneen bus rank in the town of Tzaneen, Limpopo Province as well as with their representatives (i.e. their executive committee). The purpose of the interviews was to find out what they thought about possibilities of being formalised and what their needs are. In addition, questionnaires were designed and handed out to officials from GTM LED, SEDA and GTEDA. The purpose of the questionnaires was to explore what these institutions have done previously and what they were willing to offer to help formalise the informal motor mechanic operations. The research results show that the motor mechanics understand what formalising their enterprises entails and they are willing to cooperate with the government organisations to convert them into sustainable enterprises. The representatives from government agencies showed willingness to support these motor mechanics, they are also willing to prioritise and develop necessary support programmes. The study recommends that the motor mechanics be helped with infrastructure; registering their businesses; mentoring and coaching be offered to them; marketing their business; and training and development occurring on a continuous basis.