Ubuntu management strategy in the informal sector: a case of Umlazi township.

Abstract

In South Africa, many informal businesses have been responsible for providing consumers in the townships with products they demand. Often, it has been observed that these informal traders have been successful in their ventures without following conventional management models. Usually these entities lack company structure, policies and infrastructure. Without these tools they still have managed to own a 28% stake in the countries GDP. This study sort to find how Ubuntu Principles of Management influence the practises of these street vendors. Ubuntu or Bantu principles is a humanitarian approach to business, it emphasizes the need to achieve profits to meet expenses faced. It does not promote hyper profits as the emphasis is on building relationships more than anything. The principles that underpin this framework are trust, respect, responsibility, fairness, compassion and good citizenship. The driving aim was the need to understand reasons that guide strategy and implementation for informal entrepreneurs known as street vendors in Umlazi (SA). It was thus best to use exploratory research to ensure that insight into the phenomenon is best understood. Through thematic analysis it was revealed that Ubuntu Principles of Management are influential in the strategy practiced by street vendors. These entities were found to be driven by the need to satisfy community needs and demands. They however, failed to practice the second pillar of Ubuntu Principles of Management in their businesses of fair and responsible business practices. The latter was also linked to questionable social norms and ethics that they at times practised. However, that said, customers trusted these business entities and felt they were part of the community which was most important to both parties.