Exploring the barriers to the sustainability of Spaza shops in Atteridgeville, Tshwane

Abstract

This study was undertaken to explore the barriers to the sustainability of the spaza shops in Atteridgeville (wards, 51, 62, 63, 68, 71 and 72) and to identify the support strategies necessary to assist these shops to grow into sustainable businesses. The study was motivated by the role and contributions of these stores in creating jobs for the majority of the previously disadvantaged people, particularly in the black township areas of South Africa. The study was exploratory, descriptive and qualitative in nature. Semi-structured interviews were conducted to obtain data from 18 spaza shop owners. The findings from the research indicated the following barriers to be responsible for the failure of the spaza shops: lack of financial support, lack of business management skills, expensive transportation, limited trading space, crime, negative competition among spaza shop owners, and lack of cooperatives among spaza shop owners. The study recommends that spaza shop owners should ensure that they have enough savings before embarking on business and that they should also attend training in business management to equip themselves. Spaza shop owners also need to establish collaborative ventures among themselves to enable them to voice their concerns as a collective, rather than as individuals. Government, in partnership with private sector, should improve the effectiveness of its support strategies, for example by assisting spaza shops in forming cooperatives and facilitating training in business skills. It is also recommended that the government, through the Department of Trade and Industry, should continue to find out better ways to aid these stores financially. It is the researcher’s opinion that if these recommendations are followed, they could lead to the success of these stores.