Factors That Affect The Nonpayment Of Municipal Services In Madibeng, Mamelodi And Soshanguve Townships Of South Africa

Abstract

The study was conducted in Madibeng, Mamelodi and Soshanguve townships of South Africa in order to assess and evaluate the main reasons for the non-payment of municipal services by members of the community. The study was conducted based on a stratified random sample of size 428 households. Statistical data analyses were performed by using methods such as ordered logistic regression analysis and Bayesian analyses. The results showed that 22% of households in Madibeng, 54% of households in Mamelodi and 78% of households in Soshanguve were willing to pay for municipal services that were provided to them by their local municipalities. Reluctance to pay for municipal services was significantly influenced by employment status, level of formal education and race group.

The use of e-government services by small businesses in municipalities

“…These SMMEs exist at various growth stages and are exposed to several challenges that affect their growth and success. For example, studies have identified bureaucracies, associated with business registration, as challenges that discourage business formalisation and affect overall SMME growth in the CoT [20][21][22]. Common regulatory challenges, highlighted in all these noted studies, include limited regulatory knowledge amongst SMMEs due to skills challenges; low information transfer; and costs-, time-, and process-related issues [20][21][22].…”

“…For example, studies have identified bureaucracies, associated with business registration, as challenges that discourage business formalisation and affect overall SMME growth in the CoT [20][21][22]. Common regulatory challenges, highlighted in all these noted studies, include limited regulatory knowledge amongst SMMEs due to skills challenges; low information transfer; and costs-, time-, and process-related issues [20][21][22]. Various CoT-based studies have also shown that corruption -especially pertaining to procurement-related irregularities -excludes many potential SMME suppliers from local government supply systems [20][21][22][23].…”

“…Common regulatory challenges, highlighted in all these noted studies, include limited regulatory knowledge amongst SMMEs due to skills challenges; low information transfer; and costs-, time-, and process-related issues [20][21][22]. Various CoT-based studies have also shown that corruption -especially pertaining to procurement-related irregularities -excludes many potential SMME suppliers from local government supply systems [20][21][22][23]. Corruption is, furthermore, seen to be amongst the main vices that make it difficult for city SMMEs to gain business support from local government, as such support is generally most directed towards a few 'connected' businesses [24].…”

“…Further findings indicate that CoT businesses often fail to grow, and sometimes even have to close their doors for good, due to financial access-related challenges, a lack of adequate infrastructure, skills shortages, and/or a lack of adequate governmental financial and/or non-financial support [20,25,26]. In addition, funding challenges amongst CoT SMMEs can be attributed to a lack of knowledge regarding sources of funding [26].…”

“…In addition, funding challenges amongst CoT SMMEs can be attributed to a lack of knowledge regarding sources of funding [26]. A lack of managerial, supervisory, marketing, financial, and technical skills amongst SMMEs have additionally been highlighted as contributing to the failure of many CoT-based SMMEs [20].…”