Answer to Question #195889 in Microeconomics for Kiti Kgare

Question

Land has been a huge debate in south Africa over the past 10 years with the EFF pushing for a land redistribution to all South African citizens. Without a doubt, many people in townships have created jobs and streams of income through invention of small businesses in their yards (i.e Residence, crèche, tarvens and Spazas). Critically discuss the impact of land use regulations on the formalization and sustainability of these small business.

Answer 1

A person's right to use the land for agricultural plantings or some other business is determined by land use laws. In terms of agricultural production, household plots are not strategically significant. In vast agricultural areas, doing business on a house plot does not necessitate action. As a result, land-use regulations are inextricably linked to these types of small businesses.