Informal businesses in Soweto employ a range of creative financial strategies to manage their daily transactions in the absence of traditional banking services. Many rely on cash-based transactions, with physical ledgers or notebooks serving as rudimentary record-keeping tools.
Mobile money platforms like M-Pesa have gained popularity, offering a digital alternative to cash. Additionally, informal savings clubs known as ‘stokvels’ are prevalent, allowing entrepreneurs to pool their resources and collectively manage their finances. Despite the challenges, these resilient businesses in Soweto find innovative ways to maintain financial stability in their day-to-day operations.
This project aims to investigate and find out how businesses manage their finances and record daily transactions. Do they use sophisticated methods or informal ones? If it is informal, it will be an opportunity to develop strategies and methods that are efficient for them to use.