Long term growth and sustainability of cooperatives has become the focus of many countries worldwide. Cooperatives have been seen as the platform for uplifting disadvantaged communities while improving standards of the poor in countries such as Canada, Kenya, Ghana and Nigeria (Department of Trade and Industry, 2012). In South Africa, cooperatives are seen as playing a role in poverty eradication, equal distribution of wealth, employment creation, food security and as a contributor to the economic activity. The South African government have implemented policies aimed at improving the performance and sustainability of agriculture cooperatives in South Africa. Despite all the efforts cooperatives still face sustainability challenges. Therefore the purpose of this research was to investigate the sustainability challenges that prevent the permanent establishment of cooperatives and to understand the dynamics and nature of failure associated with agricultural cooperatives .A case study methodology was used to examine a single case in-depth and to understand the factors affecting agricultural cooperatives. The main challenges identified in the study include; poor communication, limited access to markets, access to finance, a lack of good governance and a lack of managerial skills. The study recommended capacity building as the first point of reference in order to deal with challenges such as communication, access to markets and a lack of managerial skills. A lack of good governance is regarded as an attitude problem which requires setting ethical standards and rules accompanied by a penalty to the member if they are found to be breaking the rules. Access to finances is regarded as a skills and competence phenomenon which requires people to develop planning and financial literacy skills, which will enable them to formulate business plans and use them as a control tool for managing the cooperative. The business plan is also regarded as an asset or security document which acts as a proof that the cooperative is well planned, organised and sustainable. The research concludes with suggesting areas for future study to investigate the impact of informal education practices on skills development in the success of cooperatives.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:20555 |
| Date | January 2015 |
| Creators | Tsholoba, Nokulunga |
| 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, MA |
| Format | xi, 74 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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