New data shows the comparative earnings analysis of the informal sector in South Africa’s two major cities of Gauteng and the Western Cape.<\/p>\n
According to the most recent data, in 2013 there were 1.5 million people running an informal business in South Africa, according to Statistics South Africa (Stats SA).<\/p>\n
The sector, Stats SA said, accounts for 5% of the country\u2019s GDP, remaining pretty much stagnant over the past decade.<\/p>\n
The report found that in 2013, as many as 52.3% had a turnover of R1,500 or below in the month prior to the survey, and only 14.6% had sales above R6,000.<\/p>\n
Net profits for 64.9% of businesses were also low, at R1,500 or lower in the month prior to the survey, and only 9.2 % of businesses made net profits above R6,000.<\/p>\n
Using its Salary Analysis ModelTM of 128,087 individuals, Analytico<\/a>, a data and earnings analytic consultancy, finds the following:<\/p>\n According to Statistics South Africa the informal sector consists of: \u201c…businesses that are not registered for income tax or VAT. They are generally small in nature and are Some examples of such occupations range from street-vendors, hawkers,\u00a0spaza shops<\/span> and informal tradesman.<\/p>\n Analytico found that the median earnings for Gauteng is slightly higher however, the percentage chance of not earning anything is 2% higher in Gauteng than the Western Cape.<\/p>\n This could be due to Gauteng having a much more competitive informal sector which is 52% larger than the Western Cape\u2019s.<\/p>\n How a R4,000 South African minimum wage compares to the rest of the world<\/strong><\/a><\/p>\n The flaw in the minimum wage debate<\/strong><\/a><\/p>\n How much money informal traders really make<\/strong><\/a><\/p>\n\n
\nseldom run from business premises. These kinds of businesses are generally run from homes, street pavements and other informal arrangements.\u201d<\/p>\n\n\n
\n <\/th>\n Lower<\/th>\n Median<\/th>\n Upper<\/th>\n<\/tr>\n \n National (p\/m)<\/td>\n R1 050<\/td>\n R2 004<\/td>\n R4 497<\/td>\n<\/tr>\n \n Gauteng (p\/m)<\/td>\n R1 188<\/td>\n R2 818<\/td>\n R6 936<\/td>\n<\/tr>\n \n Western Cape (p\/m)<\/td>\n R1 386<\/td>\n R2 606<\/td>\n R5 597<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n More on informal trade in South Africa<\/h3>\n