Creative industries micro-enterprises and informality: a case study of the Shweshwe sewing industry in South Africa

Abstract

The Cultural and Creative Industries have great potential for providing employment and economic development, as has been demonstrated by a number of international studies. However, cultural firms tend to be small and employment is precarious, with a high level of informality and freelance work. This study investigates the characteristics of micro-enterprises who sew bespoke garments for individual customers using a particular South African textile, called Shweshwe. Findings show that the informality of the businesses does not have a statistically significant impact on turnover, when controlling for other factors, such as the education level of the owner. This suggests that the informal business model may be a deliberate, rational choice for firm owners working in a project-based cultural sector, rather than a survivalist strategy of last resort. Employment creation is, however, greater for those micro-enterprises operating in the formal sector, suggesting that there may still be benefits to formality for some firms.

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