An investigation of the taxi industry in Northern Free State Goldfields region

Thesis (M.Com. (Business Management))--North-West University, Vaal Triangle Campus, 2004.South Africa like all the growing or developing countries has a high unemployment rate and a high poverty percentage. To reduce these problems the government needs to work hard to formalise the taxi industry by instilling management skills, training and educating owners and drivers (employees) of the industry. Subsidies need to be provided as it is given to the busses and trains. To sustain the smooth, productive and economic development, the government must make thorough training available on the financial management and human resource management side of the industry. The taxi industry boosts the economy of Welkom (Goldfields). The majority of people in the Goldfield depended on mines and when Anglogold mines closed down around the Free State people resorted to taxi operations. Because of ignorance and lack of knowledge their industry does not show any viability or sustainability. This is where the government must come in with guidance and developments. According to this research the industry has problems in the following areas: 1 Access to funds from commercial banks. 2 Drivers not regarded as workers as they are not registered. 3 Ill-treatment from authority (traffic officers). Taxi owners are risk takers. Being entrepreneurs, they brought change to the market where there was a gap and they also identified the opportunity of providing a service to the market. Taxi owners brought convenient transport to the public and also have the ability to handle ambiguity, that is they went into in this business even though they had no idea of the outcomes, they continue to sewice the public. Research findings reveal that more emphasis should be on business development, management skills development and formalising the industry. In should be fully registered and its employees registration is essential. If all the above could be fulfilled there will be employment generation.Master