Rural enterprise development as a means to poverty alleviation

Bodley, David Cyril

Title: Rural enterprise development as a means to poverty alleviation
Creator: Bodley, David Cyril
Subject: Poverty -- South Africa
Subject: Rural development projects -- South Africa
Subject: Economic assistance, Domestic -- South Africa
Date Issued: 2020-12
Date: 2020-12
Type: Doctoral theses
Type: text
Identifier: http://hdl.handle.net/10948/49759
Identifier: vital:41797
Description: South Africa’s disappointing economic performance over the last decade has resulted in a socio-economic crisis, with unemployment and inequality rates being of the highest rates anywhere in the world. Furthermore, unemployment is concentrated among the young, unskilled, and previously disadvantaged population posing a considerable threat to South Africa’s new democracy. Internationally, a method to absorb job seekers into the economy is to make small business the engine-room of economic growth and development. Consequently, the South African Government has identified in its National Development Plan the establishment of small businesses as a priority, including the development of small businesses in rural and marginalised communities. As rural communities in South Africa experience systemic problems such as the lack of infrastructure, financial capital, skills and potential markets, establishing enterprises in rural settings is often more complex than those more advanced parts of the economy elsewhere where fewer constraints exist. This makes the task of establishing and growing rural entities particularly challenging, suggesting bespoke policy and support is required. This study analyses the literature to gain an understanding of economic development theory and how this intersects with and informs small enterprise development policy. It then looks at South Africa’s strategy and policy framework pertaining to enterprise development. Specifically, the literature examines the role of rural enterprise development to establish whether this enables people to move out of poverty or further entraps people in poverty. The study collates data from a rural and marginalised community through observation and interview techniques. Firstly, multiple in-depth interviews were conducted with nineteen entrepreneurs in a rural community to collect data on business opportunities and explore the type of support entrepreneurs would require from government. Secondly, a focus group interview was conducted with entrepreneurs that had ii experienced institutional support to understand how well current policy and programmes support rural enterprise development. The primary data was analysed in conjunction with the literature on economic theory and enterprise development using the technique of triangulation to avoid logic leaps and formation of false assumptions. The insights and findings from the analysis reinforced certain facts within the body of knowledge pertaining to enterprise development, but there were also some interesting new insights that emanate from the data. South Africa has been able to introduce a wide range of policy initiatives and has multiple programmes and strategies to support small enterprise development. It has achieved firm success and impetus as well as experiencing certain failures. The study clearly highlights both and makes recommendations to improve policy promoting rural enterprise development as a means to alleviate poverty.
Description: Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Management Sciences, 2020
Format: computer
Format: online resource
Format: application/pdf
Format: 1 online resource (251 pages)
Format: pdf
Publisher: Nelson Mandela University
Publisher: Faculty of Business and Economic Sciences
Language: English
Rights: Nelson Mandela University
Rights: All Rights Reserved
Rights: Open Access

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