A conceptual comprehension of factors that impede growth of spaza shops in south Africa

Abstract

This study explores the factors that impede the growth of spaza shops in South Africa, with a specific focus on the North-West Province. Despite their crucial role in supporting township economies, these informal enterprises face numerous challenges that hinder their development and long-term sustainability. Adopting a qualitative approach, the research is based on a systematic review of secondary literature sourced from academic databases, government reports, and industry publications. The study employs thematic analysis, guided by the Knowledge-Based Theory (KBT), to identify key themes related to business growth constraints and strategies. Findings indicate that spaza shops are constrained by limited access to finance, inadequate infrastructure, legal barriers, and increasing competition from formal and foreign-owned retailers. However, the study also highlights that strategic knowledge, market adaptability, informal networks, and customer engagement can serve as crucial growth enablers. The conclusion underscores that while knowledge-based strategies strengthen resilience, meaningful growth remains unattainable without structural reforms and institutional support. Practical implications suggest that spaza shop owners can benefit from adopting flexible business practices and enhancing community-based knowledge sharing, while policymakers and stakeholders must streamline formalization processes, expand access to finance, and invest in capacity-building initiatives. These interventions are essential for improving the viability and competitiveness of township enterprises in South Africa’s informal economy.