Many believe that small and medium natural resource-based enterprises (NRBEs)
provide a vision to reduce poverty in the Third World’s rural communities and
households. As a result, new rural enterprises should be created and existing ones
reinforced within a framework of sustainable livelihoods that target all appropriate
members in the communities. This study investigates the impact of the natural
resource based enterprises income on the rural livelihoods in the households
using a rural natural-based craft enterprise (using reeds, Cyperus spp, as raw
material), as a case study, Ikhowe Craft Enterprise, situated in small town called
Eshowe in northern KwaZulu-Natal, South Africa..
In designing this study, a combination of both qualitative and quantitative research
methods was employed. This was influenced by the aim and the type of data
required for the study. The said methods were (a) semi-structured interviews for
producers (a questionnaire had a pre-determined mix set of both open-ended and
closed-ended questions); (b) interviews for management were conducted with a
purely qualitative questionnaire which consisted of only structured and open-ended
questions; (c) field observations, and (d) a review of secondary materials
(administrative records). Apart from how derived income impacts on the
participants, data required also included performance of the enterprise, access to
markets, support available, and livelihood analysis of the participants households
which included issues such as households’ economies and exploring extent of,
and reasons for diversification, and challenges both the enterprise and
participants’ households face daily in relation to making a living.
The results show that there was a significant increase in business annual turnover
and producers’ earnings between 2003 and 2005. In 2003, about 50% of the
producers earned less than R1000 per year, while in 2005 only 3% earned less
than R1000 per year. Despite the total annual increase of earnings and the
significant contribution of craft income to producers’ households’ incomes,
individual earnings varied considerably amongst the producers and as a result the
economic impact was also variable. Other than craft, strategies such as
government grants enhanced livelihood diversification in the case study. However, lack of understanding of basic business principles and skills amongst both the
crafters and management posed threats to the sustainability of the enterprise.
The income derived from the NRBE activity, especially since it is based on natural
resources with low economic value (reeds) was found to have both diversifying
and supplementing effects on different producers’ other strategies. Although, the
enterprise is achieving growth, there is a concern and a need to measure the
future sustainability of the enterprise. In addition there is a need to improve the
producers’ basic business skills and business management competency / Thesis (M.Env.Dev.)-University of KwaZulu-Natal, Pietermaritzburg, 2008.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/333 |
| Date | January 2008 |
| Creators | Mofokeng, Jafta Lehlohonogo. |
| Contributors | Hay, Duncan., Fincham, Robert J. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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