The sustained growth of small, medium and micro enterprises (SMMEs) could help to reduce poverty, income inequality and unemployment problems in KwaZulu-Natal (KZN). Public and private sector institutions can identify policies and strategies to, increase the survival and growth rates of SMMEs if they have more information about the factors that constrain business performance, and the link between entrepreneurial quality and enterprise success. The owners of 44 agribusiness SMMEs in a stratified random sample of Ithala Development Finance Corporation (Ithala) clients in KZN were, therefore, surveyed during October 2003-February 2004 to identify what they perceive are constraints on business survival and growth, and how entrepreneurial quality affects business success (using loan repayment performance at Ithala as a proxy for success). Principal Component Analysis of 36 potential constraints ranked by the survey respondents identified eight dimensions of perceived constraints: A lack of access to services; funding constraints at enterprise start-up; a lack of management capacity in the enterprise; access to tender contracts; compliance costs associated with VAT and labour legislation; liquidity stress; a lack of collateral, and a lack of institutional (government and private sector) support. A lack of collateral and access to services seemed to affect the Retailer stratum relatively more, while Speculators considered lack of capital at start-up to be their major constraint. Harvester contractors and Processors seemed to be most affected by compliance costs, while Processors were especially prone to liquidity stress. Possible solutions to ease these constraints include the provision of appropriate infrastructure and training, development of innovative loan products to address cash flow and collateral issues, more transparent tendering processes, and policies to reduce the costs of compliance with legislation. An empirical logit model showed that strong energizer behaviours (current and planned business expansion and staff training) that reflect entrepreneurial quality, more business experience, and family assistance to become an entrepreneur, promote loan repayment (success), while a lack of access to electricity and training facilities increase the probability of loan default. This suggests that more focus on the personal characteristics of credit applicants and (again) the development of appropriate infrastructure and training services could help to promote the future success of agribusiness SMMEs in KZN. / Thesis (M.Sc.Agric.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

Involvement in agricultural activities has generally been the main livelihood strategy for rural people. This was also the case with KwaMbonambi and Sokhulu farmers, especially amadumbe producers. The research was therefore undertaken to explore the marketing opportunities for amadumbe in the Mbonambi Municipality under which KwaMbonambi and Sokhulu tribal areas fall. A research team was formed by five staff members from the Department of Agriculture including the researcher. Five research tools were used to collect data and these were questionnaires for formal retail shops, focus groups for processing centres, a transect walk to assess the land availability, sustainable livelihoods and force field analyses for amadumbe producers, From the findings, the formal retail shops and processing centres did not have a direct link with local amadumbe producers of KwaMbonambi and Sokhulu. Their produce came via agents from Durban and Johannesburg. Amadumbe producers on the other hand were producing amadumbe for their own consumption or to sell either to local communities (from the garden gate) or to hawkers in nearby towns. A recommendation was made that an amadumbe marketing forum be constituted in order to close the gap between formal retail shops, the processing centres and the amadumbe producers of KwaMbonambi and Sokhulu. Farmers felt that they could produce amadumbe of the quantity and quality required by the formal outlets if they improved their production amounts and marketing strategies. / Thesis (M.Soc.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.

The main objective of the study was to investigate the marketing strategies needed for the development of a peanut agribusiness for small-scale farmers producing peanuts in the Vulamehlo District, southern KwaZulu-Natal (KZN). The study was part of the extension programme of the KwaZulu-Natal Department of Agriculture and Environmental Affairs (KZNDAEA). Another aim of the study was to examine the market requirements for peanuts purchased from Vulamehlo farmers in relation to the processing and sale of peanuts and whether or not market outlets for peanut products in KZN were available. In addition, current links between farmers, peanut processors, agents and retailers were to determine, if the marketing of peanut butter produced by small-scale farmers could be improved. Small-scale farmers were targeted because they play an important role in rural areas for community development and for poverty alleviation and also to generate income. There is little research on small-scale agribusinesses. Small-scale farmers have unreliable supply chains and markets. The study was conducted between May and November 2005. The data for the development of agribusiness for small-scale farmers in the Vulamehlo district were gathered from four wards of Vulamehlo: Mkhunya, Qiko, Mzimlilo and Mazabangwane. Questionnaires, a focus group discussion and observation were used to collect data from farmers and informal processors of peanut butter. Interviews were conducted with informal traders, formal traders and a formal peanut butter processor, to collect information about their marketing of peanut products. Six peanut producing farmers’ associations out of ten were randomly selected from the list of farmers’ associations in the Vulamehlo District. Details were obtained from the Department of Agriculture office. The study found that the marketing requirements needing to be met by small-scale farmers include availability of adaptable certified peanut seeds, appropriate tools and equipments for cultivation, reliable supply of raw material, grading and testing of level of aflatoxin in peanuts, knowledge of processing regulation to food safety and hygiene, proper business and management skills and relevant technology and marketing information. The study revealed that there were no seed companies around Vulamehlo sold peanut seeds and there were no commercial peanut-producing farmers in KZN to assist small-scale farmers. Farmers were using manual tools for the peanut production process. This limited production and expansion and lowered the yield. Constant supply may be a problem for the business processing enterprises. The markets for Vulamehlo peanut producing farmers were informal and insecure. The peanut butter co-operative lacked processing equipment, processing know-how, energy-saving technology and marketing information. It is recommended that developing agribusiness linkages with suppliers, traders, farmers and processors would improve the small-scale farmers’ negotiating skills. The KZNDAEA should improve links with large-scale farmers, traders, suppliers and processors, in order to obtain more information on peanut production. Contamination, especially by aflatoxin, during the processing of peanut products should be eliminated. / Thesis (M.Soc.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.