READ THE FOLLOWING CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW. SPAZA SHOPS ARE OVERLOOKED DESPITE HUGE CONTRIBUTION TO ECONOMY Government neglects a sector that employs millions of people and adds 5.2% to SAs GDP. The informal economy contributes about 5.2% to SAs GDP and employs more than 2.6-million people, many of them women. Spaza shops alone contribute millions a year to the national fiscus. Why then are these economic contributors so often overlooked by the government, receiving little support and inclusion in the greater economy? This has been particularly apparent during the Covid-19 pandemic. While formal small, medium and micro enterprises (SMMEs) received stimulus packages and the government put measures in place to help prevent businesses having to close down, with the loss of jobs, the informal economy was largely ignored, compounding the negative effect on the most vulnerable of our society. Spaza shops are an essential component of the South African township economy as they provide vital goods, employment and an income to most township dwellers. Despite this, the sustainability of spaza shops has been problematic, with most closing down within the first few years of operation. Against this backdrop, this paper assessed the scope and operation of spaza shops in the Mankweng area in an attempt to understand the problems that inhibit their viability. A quantitative approach that utilised structured and closed-ended questionnaires was adopted to collect data from 50 spaza shop owners. A GPS device provided the coordinates utilised to map the spatial distribution of the spaza shops in the area. Most of the spaza shops surveyed were foreignowned with the preponderance of Ethiopians (34 per cent) and Somalians (34 per cent). South African spaza shop owners constituted only 26 per cent of the sample. The study notes that although spaza shops generate income for their owners and are integral to the township economy, they face a variety of challenges that inhibit their expansion. The study recommends that spaza shop owners form a union from which they can share strategies for overcoming challenges. Such a union would also enable the shop owners to access funding from government schemes and private investors alike so that their operations are expanded. This paper adopts an exploratory and integrated approach that focuses on exploring variables/relationships that may be utilised for more focused and streamlined studies on spaza shops. Source: Spaza shops are overlooked despite huge contribution to economy (businesslive.co.za)

2.1 In reference to the provided case study, critically analyse the contribution of Small Enterprises to the overall economy. (20) 2.2 Recommend ways in which the government and the community can be of great support to small enterprises. (10) 2.3 Critically examine and highlight the key causal factors of failure in small enterprises. (20)