TOWARDS DEVELOPING A STRATEGIC FRAMEWORK FOR STIMULATING RURAL ENTREPRENEURSHIP IN KWAZULU-NATAL, SOUTH AFRICA: A CASE STUDY OF THREE MUNICIPALITIES

Year 2018, Volume: 10 Issue: 1, 150 - 166, 01.01.2018

Mapeto Bomani Evelyn Derera

Abstract

Rural entrepreneurship is critical for poverty alleviation, food security,Q employment creation and the overall development of rural communities. The growth of Small Micro and Medium Enterprises (SMMEs) in rural areas is stifled by a multiplicity of challenges. Rural municipalities have responded to these challenges by crafting strategies aimed at stimulating the growth and development of SMME sector. However, the pace of rural SMME development has generally been slow. This, therefore, calls for the need to develop initiatives that accelerate the growth of the SMME sector. This study contributes towards the development of a strategic framework for the development of SMEs in rural communities in South Africa, particularly in the KwaZulu-Natal province. Purposive sampling was used in identifying research participants. Data was collected through in-depth interviews with ten municipal officials and twenty SMMEs operating in three rural municipalities of Amajuba District in Kwazulu-Natal. A thematic approach was employed for data analysis. The results indicate that although progress has been made towards the promotion of rural entrepreneurship in South Africa, more efforts are required to further stimulate the growth and development of this sector by ensuring effective implementation of relevant initiatives. The study recommends that the municipalities should distribute land to local SMMEs, cluster SMMEs to enhance skills development through training and technology transfer and conducting business exhibitions. Importantly, continuous mentorship and monitoring of the progress of SMMEs after the provision of training and financial resources is critical for the growth of rural entrepreneurship.

Keywords

Rural Small and Medium Enterprises, rural entrepreneurship, , municipalities, , strategic framework, rural development

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