South Africa is faced with much poverty, joblessness and an economy that is not sustainable. Unemployment is on the rise in South Africa with the Eastern Cape having the largest number of unemployed people. Co-operatives can be used as a tool to combat poverty and for job creation, but the problem is that co-operatives are still an unknown entity in South Africa. Co-operatives are only known by a few and those few are still sceptical and not willing to form co-operatives. The already established businesses are also not forthcoming nor showing any willingness to do businesses with co-operatives. The less they do business with them, the less the co-operatives flourish. The present study investigates to what extent co-operatives can be a solution to decrease poverty and unemployment. The primary objective of this study was to make a contribution to the development and success of co-operatives by investigating the performance of co-operatives in the in the important business functions of financial management, general management, human resources management, marketing management and operations management. The study also investigated which of these business functions were the most important determinants of business success in these co-operatives. A sample of 50 co-operatives in the East London area of the Eastern Cape was selected and three members per co-operative were requested to answer the questionnaire. The expected number of respondents was therefore 150. However, only 65 usable questionnaires (response rate of 43.3%) were returned. The SEDA Small Business Assessment Tool was used to measure the co-operatives’ performance in these business functions. The empirical results revealed that the strongest correlates of business success in these co-operatives were financial management (r = 0.57, p < 0.05) followed by human resources management (r = 0.49, p < 0.05) and operations management (r = 0.40, p < 0.05). The results also show that, while the co-operatives do have some form of financial management strategies in place, they do not address some of the major financial management concepts that are really essential in a sound financial management policy. The co-operatives generally do not follow any formal financial costing system at all. The results however indicated that the co-operatives expressed high confidence in their financial, general and human resource management practices and low confidence in their marketing and operations management practices.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:21226 |
| Date | January 2014 |
| Creators | Nhawu, Mucharambeyi |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xii, 87 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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