Thesis (Ph.D. (Development Planning and Management)) -- University of Limpopo, 2023 / Rural entrepreneurship is a relatively young sector in the entrepreneurship field, but it has
emerged as one of the most important tools for rural economic growth in developing nations like
South Africa. A majority of poor people live in the rural areas and face the challenges of extreme
poverty levels, high unemployment rates, appalling socio-economic conditions, and inequalities.
Therefore, rural entrepreneurship is regarded as a vital tool for accelerating Local Economic
Development (LED) and improvement of the quality of life of the rural people and their
communities. Rural entrepreneurship stimulates economic development by improving economic
conditions, creating employment, reducing poverty and improving the overall standard of living
of the rural populace. Theoretically, there is clear consensus that rural entrepreneurship has the
potential to reduce poverty, unemployment, economic inequalities and low income as well as
value creation and improving standards of life in rural areas through the creation of new
enterprises. Entrepreneurial activities stimulate the local economy and create employment
opportunities through the creation of new enterprises in the rural areas. Thus, entrepreneurship
development is seen as one of the important components of LED and the development agenda in
most developing countries. However, entrepreneurial success is dependent on various factors,
internal or external, such as the need for achievement, locus of control and desire for personal
control of business, human capital, infrastructure, training, communication network, financial
support, business environment, economic climate, competitiveness, risk-taking propensity,
confidence, and regulatory environment. These factors may determine or influence the success of
enterprises, thereby hampering LED efforts in a particular locality.
Literature further reiterates the importance of rural entrepreneurship development towards
accelerating economic development of local communities in the developing countries.
Entrepreneurship development is regarded as a driving force of local economic growth and
development in the developing countries. Many developing countries are faced with numerous
socio-economic challenges of extreme poverty levels, high unemployment rates, stagnant
economic growth and poor living conditions. Entrepreneurship development has become an
important policy agenda and priority for employment creation, poverty reduction and economic
growth and development of communities in many developing countries. Thus, many developing
countries have turned their focus on entrepreneurship development as an important mechanism
and driver of economic development with expectations of addressing these challenges. Despite
such efforts, entrepreneurship development in developing countries faces challenges such as
financial, human, management, lack of access to markets, lack of capacity, lack of infrastructure
and appropriate regulations. These challenges affect and undermine the potential of
entrepreneurship to stimulate LED and address challenges affecting many developing countries.
The role of local government in creating an enabling environment for entrepreneurial activities
and LED to thrive is widely acknowledged in most developing countries. Local governments in
developing countries have become important vehicles for the promotion and implementation of
LED and the creation of enabling environment for entrepreneurial activities to take place. LED
in these developing countries is driven mainly by globalisation and decentralisation as an
important strategy to local development. Globalisation and decentralisation play an important
role in reconfiguring of planning approaches to local and regional development in developing
countries.
The observations above are also prevalent in South Africa, where entrepreneurship development
is one of the national development policy imperatives. However, South Africa has a low
entrepreneurial rate compared to other developing countries because of various factors including
those highlighted above. Lack of entrepreneurial spirit or culture is increasing highly in the
country. Entrepreneurship development and LED practice in South Africa is shaped by
overwhelming policies and legislations, which seek to support and encourage entrepreneurship
and LED. These regulatory frameworks are aimed at creating conducive and enabling
environment for LED and entrepreneurial activities to take place. Local governments have a
constitutional obligation to promote social and economic development as well as improving the
overall standard of living of local communities within the municipal area. In the process,
municipalities must work collectively with local people and local stakeholders to develop their
communities. LED has been adopted as one of the strategies to local growth and development of
communities in South Africa. Despite LED efforts, the country continues to grapple with societal
challenges of poverty, unemployment, inequality and stagnant growth of the economy.
Currently, municipalities are plagued with various challenges and are in a dire state that threatens
the ability to fulfil their constitutional and developmental mandate of promoting social and
economic development.
The aim of this study was to investigate rural entrepreneurship and its implications towards LED
in the Mogalakwena Local Municipality, Limpopo Province. To achieve this aim, the study
adopted descriptive, positivist case study design, and used the concurrent mixed methods
approach to achieve the aim and objectives of the study. The study sampled 54 rural
entrepreneurs around three Service Delivery Areas (SDAs) of Mokopane, Mapela and Bakenberg
in Mogalakwena Local Municipality as well as key informants from Small Enterprise
Development Agency, Local Economic Development Agency (LEDA) and Municipal LED Unit.
A semi-structured questionnaire was used to solicit data from rural entrepreneurs whereas an
interview schedule was used to solicit data from key informants. The study findings affirm that
rural entrepreneurship plays a significant role towards LED through poverty alleviation,
employment creation, economic opportunities, income generation, value or wealth creation,
migration and overall improvement of the standard of living of local communities in
Mogalakwena Local Municipality. Rural entrepreneurship is seen as one of the stimulators of
economic activities in rural areas within the municipality. Despite the affirmation, the study
found that rural entrepreneurs are faced with persistent challenges such as lack of access to
finance and markets, lack of skills or capacity, stiff regulations and completion, crime, lack of
infrastructure, lack of support by the municipality and poor participation or integration in LED.
These challenges inhibit entrepreneurial activities to take place, thereby threatening the survival
and success of rural enterprises. Therefore, the study recommends measures such as creation of
an enabling regulatory environment, financial support models for entrepreneurs, skills
development and training, recognition and integration of rural entrepreneurs in LED fora and
promotion of entrepreneurship culture to maximize the potential of rural entrepreneurship in
Mogalakwena Local Municipality. Additionally, future research is also important to tap into the
niche area of rural entrepreneurship.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ul/oai:ulspace.ul.ac.za:10386/4290 |
| Date | January 2023 |
| Creators | Mashamaite, Kgalema Abbyton |
| Contributors | Ramoroka, T.M. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | xix, 237 leaves |
| Relation |
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