- Title
- Micro-insurance and rural micro-enterprises in the North West Province of South Africa
- Creator
- Molefe, Samuel Seabelo
- Subject
- Insurance -- South Africa -- North West Province
- Subject
- Small business -- South Africa -- North West Province
- Subject
- Business enterprises -- Insurance
- Date Issued
- 2024-04
- Date
- 2024-04
- Type
- Doctoral theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/65208
- Identifier
- vital:74049
- Description
- The Provision of micro-insurance in developing countries' rural areas is quite important, but not without its share of challenges. Among those challenges are logistics and demand. Several problems experienced by developing countries, including moral hazards, adverse selection, correlated risks, high transaction costs, and lack of data, negatively impacting access to insurance, were identified. Other researchers are, however, hard at work trying to come up with solutions to address those challenges. The selective coverage by insurance providers leaves a large segment of the world’s poor population in the hundred poorest countries with limited or no access to micro-insurance. North West province of South Africa, was identified as one of the top four rural provinces, with a higher percentage of people living in poverty. The province was selected for the study, with the purpose of determining the relationship between micro-insurance and micro-enterprises. The study followed a mixed methodology design, with pragmatism as a research paradigm. The research instruments used were interviews focus group discussions (18 participants), and survey questionnaires (112 respondents). Data was collected using concurrent triangulated mixed methods from both strands, qualitative and quantitative were analyzed, and the results were merged and corroborated. The main finding is that micro-entrepreneurs do not have business micro-insurance and would be willing to have one if it existed. What emerged from other findings is that there is a positive relationship between trust and willingness to purchase insurance, as well as a positive relationship between risk and insurance demand. Furthermore, there are negative relationships between shocks and insurance demand, demand and prevalence, and the inclusion and demand for insurance. This is contrary to what is in literature. There is further, evidence of more dependence on funeral and death benefits, other than on investment and savings micro-insurance policies. This study recommended that there should be a national policy in place to address challenges experienced by micro-entrepreneurs in terms of access to insurance. Also, potential micro-insurance service providers deserve leniency through the lowering of entry barriers such as capital adequacy requirements. Furthermore, the issue of illegal or unregistered service providers must be addressed to protect consumers. It was also recommended that more awareness be created through tribal administrations, by micro-insurance regulators and service providers, to promote inclusion among micro-entrepreneurs and other rural low-income earners in general. In conclusion, it is envisaged that this exploration will lead to an applicable model that can assist insurance service providers and other stakeholders in coming up with innovative micro-insurance product packages.
- Description
- Thesis (DPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (xxii, 259 pages)
- Format
- 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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Collections
NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Molefe, S April 2024.pdf | 6 MB | Adobe Acrobat PDF | View Details Download |