Faculty of Management Sciences

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The role of SMMEs in promoting local economic development : a case study of the Matatiele Local Municipality
(2023-06) Hoffman, Pholoho Glorius; Jugmohan, Sean; Kudakwashe, Shoniwa
South Africa continues to have issues with unemployment, poverty, inequality and slow economic growth. As the economy shifted to skills-based employment, one province significantly affected is the Eastern Cape, which faces slow economic growth. The government of this province made the decision to implement a national strategy to reduce unemployment and boost growth and development through small and medium and micro sized businesses (SMMEs). The Matatiele Local Municipality, located within this province, was selected as the study area. Small medium and micro enterprises and municipal stakeholders operating within the Matatiele Local Municipality were interviewed for this study. The methodology used to conduct this study was qualitative, in-depth interviews to gather data. Twelve participants made up the sample, which was drawn from the Matatiele Local municipality, SMMEs and Community members. The Endogenous Growth Theory, which maintains that internal rather than external forces predominantly affect economic growth, was used in this study. The study recommends that the municipality work in collaboration with the SMMEs and locals to revive business confidence. This advice could be carried out by making sure that all information pertaining to SMMEs is conveyed clearly and on time in order to prevent misunderstandings. The municipality also needs to ensure that the support it provides to SMMEs is enough to be sustainable. It is evident from the feedback from local business owners that the municipality needs to increase the budget for Local Economic Development (LED) in order to make sure that SMMEs reap the most benefits.
Child support grant and poverty alleviation in Jika Joe informal settlement
(2023-04) Xaba, Ntombizonke Maureen; Fagbadebo, Omololu M.
Evidence found in the literature suggests that Child Support Grant is among the most important programmes to alleviate poverty in South Africa. Findings from previous studies suggest that the Child Support Grant is an important tool of social protection in South Africa, reaching over 17 million South African children each month. However, the impact and extent of its effectiveness thereof has not been adequately explored and are still debated. Previous studies tended to focus more on the Child Support Grant as a tool to provide for the basic need of the child rather than its impact on both the beneficiary and the child. This research examined the Child Support Grant and poverty alleviation at Jika Joe Informal Settlement. The objectives of this study were to examine the development programmes other than cash transfer designed for the Child Support Grant beneficiaries at Jika Joe informal settlement, to identify the challenges that hinder the realisation of the government’s objectives in poverty alleviation at Jika Joe informal settlement and to examine the effectiveness of the poverty alleviation component of Child Support Grant. Using a qualitative method approach, this study collected data from South African Social Security Agency (SASSA) management at Pietermaritzburg Local Office, also known as “Mbilakhahlela” and Jika Joe Informal settlement residents, in which the said SASSA office provides Social Grants to qualifying residents. This study is conceptualized within the framework of understanding poverty, high unemployment rate, inadequate infrastructure, zero hunger and corruption from the premise that poverty remains largely a challenge unmet! The study conducted an in-depth interview with the research participants to gain a better understanding of Child Support Grant more specifically the obstacles that might hamper the government’s objectives in alleviating poverty. The study also examined whether there are developmental programs provided by the Government to demonstrate positive marks. The focus of the study was to examine the contribution of the Child Support Grant to poverty alleviation at the Jika Joe Informal Settlement. The analysis of data showed that Jika Joe residents perceive the Child Support Grant as an effective tool to provide for the basic needs of the child. This is, however, compromised by the fact that the very same grant is commonly shared by the entire family in the area. Another reported problem was the lack of beneficiary empowerment as manifested in general skills shortage which disadvantaged Jika Joe residents from competitively participating in the job market. The conclusions of the study were based on the findings. Some of the findings revealed the effectiveness of the Child Support Grant, even though this is vitiated by the prevalence of the utilisation of the grant by entire households. The findings also revealed that the government does have development programmes, but the question of whether they are relevant to the community of Jika Joe Informal Settlement remains indeterminate. The study also points to the need for the Government to seriously consider the introduction of the Basic Income Grant; the relocation of the Jika Joe residents to more decent housing like the newly built flats that they had been promised.
Creating economic viability in rural South Africa through water resource management in subsistence farming
(Business Perspectives, 2016) Bakre, Olayemi Rahman; Dorasamy, Nirmala
The purpose of this paper is to analyze the role water resources management can play in improving subsistence farming in rural South Africa, as well as reducing poverty. The study followed a mixed research approach where attributes of qualitative and quantitative methods were used. This paper indicates that due to water scarcity experienced amongst subsistence farmers in case study area, several farmers have opted out of farming. This has a negative consequence on food security and poverty among many subsistence farmers. The paper suggests the pathways for sustainable subsistence farming aimed at creating an economically viable rural community while addressing poverty through the implementation of an efficient water resources management practice. As highlighted in this paper, development is a gradual process, and water resources management can possibly be the first step in creating an economically viable community while alleviating poverty among subsistence farmers in water scarce rural areas of South Africa. Revamping the subsistence farming, as well as improving the standard of living amongst rural subsistence farmers requires a purposeful co-ordination and exchange of ideas between experienced agricultural extension workers, researchers in the field of context, policy makers, as well as other stakeholders. Such purposeful co-ordination should have an agenda of transforming the subsistence farming to a commercialized form of farming in the long term. The resultant effect will possibly result in an economically viable community; increase in household income, as well as food security, thereby reducing poverty.

Faculty of Management Sciences

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