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Calory Larr Onyango[1],

Abstract

This study examines the factors and challenges influencing digitalisation by small scale informal traders in South Africa, using Melville in Johannesburg as a case study. The Resource Based View (RBV)  theory is used as  its theoretical framework, by focusing on the assets and capabilities that the informal traders have which can enable them to gain a competitive advantage. A mixed methods approach was used in the study. Data was obtained in two phases using surveys, focus group discussions and in-depth interviews. Descriptive statistics using frequencies and percentages was used to analyse the data. The results indicate that factors influencing digitisation by the informal traders are gender, accessibility of devices, affordability in terms of airtime and data needed to go online, the nature of products being sold, enhanced interactions with customers,  and the ability of the entrepreneur to effectively utilise the digital devises. Cost of data and the precarity of informal business operations were the main challenges identified. The study recommends that local authorities support the informal traders through setting up of Wi-Fi hotspots close to the areas where the traders stay, facilitating skills acquisition in the use of ICT, and supporting them in ensuring safe payment methods from their customers.

Keywords: Adoption, digitalisation, informality, informal traders, mobile devices.