A new article in the Journal of Arid Environments (see reference below) examines the ‘Small Town Paradox’ in eight small towns in the Eastern Cape Karoo. Normalised data (enterprise numbers per thousand residents) and estimates of enterprise richness were used in the comparisons. Willowmore, Steytlerville and Jansenville outperformed Aberdeen, Hofmeyr, Steynsburg, Venterstad and Pearston in terms of total enterprises per 1000 residents as well as enterprises per 1000 residents in the tourism & hospitality services and agricultural products and services sectors. In fact, in some measures these towns even outperformed the larger towns of Graaff-Reinet, Cradock, Somerset East and Middelburg. Over some seven decades, the enterprise richness of Willowmore, Steytlerville and Jansenville increased (like those of the larger towns) whereas the enterprise richness of the other five small towns decreased. Hausmann et al. (2017) postulated that productive knowledge is a main determinant of the wealth/poverty of nations. I think this is also true for towns and used enterprise richness as a proxy for the levels of productive knowledge in the towns.
The resilience of towns is now a hot scientific topic. It refers to the ability of towns to respond successfully to adverse changes. Some do it well and some not; hence the ‘Small Town Paradox’. The decline of agriculture, particularly wool farming, in the Karoo stressed many Karoo towns. The study was done to determine if resilience was present in the Eastern Cape Karoo. It was.
The article demonstrates two important issues: 1. There are useful measures whereby the strengths/weaknesses of the entrepreneurial development of South African towns can be compared. 2. Productive knowledge is probably an important component of the resilience of South African towns.
References
Toerien, DF (2018) The ‘Small Town Paradox’ and towns of the Eastern Cape Karoo, South Africa. Journal of Arid Environments. Available free of charge for a limited period at:
https://authors.elsevier.com/a/1WwV0Vu7-m4sz
Hausmann, R, Hidalgo, CA, Bustos, S, Coscia, M, Chung, S, Jiminez, J, Simoes, A & Yildirim, MA. (2017) The Atlas of Economic Complexity: Mapping Paths to Prosperity. Center for International Development, Harvard University.
EOSA 