An assessment of the experience of small town local economic development in the Eastern Cape Midlands
- Authors: Pio, Elizabeth
- Date: 2009
- Subjects: Small cities -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Community development -- South Africa -- Eastern Cape , City planning -- Economic aspects -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:4888 , http://hdl.handle.net/10962/d1015464
- Description: This thesis is an assessment of the experience of small town local economic development in four towns namely Graaff-Reinet, Somerset East, Aberdeen and Pearston situated in the Eastern Cape Midlands, South Africa. It aims firstly to provide a critical overview of these selected small town economies before evaluating their local responses to the changing economic climate. The study is contextualized within the framework of locality development and emphasizes the heterogeneity of small towns with regards to physical, socio-economic, demographic and historical elements. From this, the original economic reasons for existence of these small towns are ascertained and then the major changes that occurred are identified. Amongst other aspects, the changes in the agricultural sector, the demographic changes particularly with regard to the significant increase in the urban population and the fluctuations in the quantity and types of businesses have all played a part in transforming the small towns' economies. As a result of these changes and many external driving forces such as changes in the regional and national economy, there are many severe challenges facing these small towns especially regarding the high unemployment rate, the associated poverty, HIV/AIDS and the low volume or absence of private investment into these localities. The responses of these small towns to the daunting challenges that they face have been considered in terms of Local Economic Development (LED) strategies that have been implemented. The LED initiatives in each town are examined in the context of their general characteristics, objectives, achievements and challenges. Emphasis is placed on Somerset East as it is the only town in the study area that has a development agency actively promoting various forms of LED. What has ultimately been established is: in all four towns, LED is not making a significant or meaningful difference and that natural market and economic forces play an important role in shaping and dictating the local economy. Somerset East is the only town where the economy could potentially be restructured with the proposed mega market-led approach to tourism and planning in the form of the Boschberg Development node. Four sectors perceived to be required for locality development are considered in this study, namely the export sector, the human resources, the local service sector and the government agencies. It is ascertained that although these sectors need to be part of a symbiotic relationship to promote and enhance economic development, they are not present in all the towns and as a result development, at both a household and a macro town level, is further hindered. Ultimately, these small towns in the Eastern Cape Midlands defy the notion that they are dying. 'Growth' and 'decline' have been two central features throughout this thesis and one of the biggest contradictions and challenges that these small towns face is the population growth with a declining or stagnant economy that cannot accommodate the increased number of people.
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- Date Issued: 2009
An investigation into causes of success and failure in small businesses within the Department of Social Development in the Eastern Cape
- Authors: Petrus, Henry George
- Date: 2009
- Subjects: South Africa -- Dept. of Social Development , South Africa -- Dept. of Trade and Industry , Small business -- South Africa -- Eastern Cape , Small business -- South Africa -- Eastern Cape -- Growth , Business enterprises -- Economic aspects -- South Africa -- Eastern Cape , Economic development -- South Africa -- Eastern Cape , Job creation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:791 , http://hdl.handle.net/10962/d1003942
- Description: The failure rate of small business initiatives in South Africa is phenomenal, and much is needed to unravel the causes contributing to such failures. Yet small businesses are playing a vital part in our global economy and in particular in terms of job creation and poverty eradication. There are internal as well as external factors that play a significant role in determining the success of these small businesses. In South Africa much emphasis is placed by national, provincial and local governments on small and medium enterprises (SMEs) to drive wealth creation and black economic empowerment. Therefore, an investigation into the factors contributing to the success and failure of SMEs is of vital importance. The South African government’s poverty eradication strategy, which is driven by the Department of Trade and Industry (DTI), allocated funds for job creation programmes as a method to combat poverty and more importantly, to develop young entrepreneurs. Among the seven departments mandated by DTI was the Department of Social Development. Since the birth of the new democracy, this department has transformed from offering a traditional remedial method of service delivery to an integrated developmental approach. This approach included extensive community work, which includes job creation and economic empowerment through the establishment of small businesses. Given the availability of funding, the inability to spend fiscal budgets as per allocation as well as the charity element of receiving involved, it is important to explore whether factors contributing to the success of these SMEs are any different to the traditional business strategies. In this study, the researcher gave special consideration to the social capital element and its contribution in the context of community support as well as the ability of SMEs to become sustainable business ventures over time. The research study aims to highlight unique factors contributing to the success and failures of SMEs established by the Department of Social Development and in doing so hopes to manifest an improved understanding of the management of these SMEs. In chapter one, the researcher gives a brief description of the activities of the Department of Social Development and its mandate to establish SMEs for job creation. A brief explanation regarding the context of the problem that was investigated is also given. Chapter two provides a detailed theoretical overview of the study, focusing in particular on factors contributing to the success and failure of small businesses. In chapter three, the research design and the various instruments used are discussed. Here, emphasis is placed on procedural issues and ethical considerations. The validity and reliability of the research is strongly motivated. In chapter four the research results are discussed. Chapter five aims to discuss the findings of the research with reference to the theoretical overview outlined in chapter two. Lastly, chapter six makes recommendations to the various stakeholders who may benefit from this research. These recommendations are the most important objectives of the research and should add value with regards to the management of SMEs in future, with special reference to the Department of Social Development in the Eastern Cape.
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- Date Issued: 2009