IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/31694.html
   My bibliography  Save this article

Owners' perceptions of factors that constrain the survival and growth of small, medium and micro agribusinesses in KwaZulu-Natal, South Africa

Author

Listed:
  • Clover, T.A.
  • Darroch, Mark A.G.

Abstract

Public and private sector institutions in KwaZulu-Natal (KZN), South Africa (SA) can identify policies and strategies to increase the survival and growth rates of small, medium and micro-enterprise (SMME) agribusinesses if they have more information about the factors that constrain business performance. The sustained growth of these SMMEs could, in turn, help to reduce poverty, income inequality and unemployment problems in the province. The owners of 44 agribusiness SMMEs in a stratified random sample of Ithala Development Finance Corporation clients in KZN were, therefore, surveyed during October 2003 and January 2004 to identify what factors they perceive constrain business survival and growth. The respondents identified eight dimensions of constraints, namely: a lack of access to services; funding constraints at start-up; lack of management capacity in the enterprise; access to tender contracts; compliance costs associated with VAT and labour legislation; liquidity stress; lack of collateral; and lack of institutional support. The provision of appropriate infrastructure and training, development of innovative loan products, and policies to reduce the cost of compliance with legislation affecting agribusiness SMMEs are some possible solutions to help deal with these constraints.

Suggested Citation

  • Clover, T.A. & Darroch, Mark A.G., 2005. "Owners' perceptions of factors that constrain the survival and growth of small, medium and micro agribusinesses in KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-26, June.
  • Handle: RePEc:ags:agreko:31694
    DOI: 10.22004/ag.econ.31694
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31694/files/44020238.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.31694?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert Klitgaard & Amanda Fitschen, 1997. "Exploring income variations across traditional authorities in KwaZulu-Natal, South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 14(3), pages 363-376.
    2. Joaquín Guzmán & F. Javier Santos, 2001. "The booster function and the entrepreneurial quality: an application to the province of Seville," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(3), pages 211-228, July.
    3. Louise Fenwick & Mike Lyne, 1999. "The relative importance of liquidity and other constraints inhibiting the growth of small-scale farming in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 16(1), pages 141-155.
    4. Cecile Nieuwenhuizen & Jaap Kroon, 2003. "The relationship between financing criteria and the success factors of entrepreneurs in small and medium enterprises," Development Southern Africa, Taylor & Francis Journals, vol. 20(1), pages 129-142.
    5. World Bank, 2000. "South Africa - Constraints to Growth and Employment : Evidence of the Small, Medium and Micro Enterprise Firm Survey," World Bank Publications - Reports 15414, The World Bank Group.
    6. Kenneth F. Harling, 1995. "Differing perspectives on agribusiness management," Agribusiness, John Wiley & Sons, Ltd., vol. 11(6), pages 501-511.
    7. Carl Liedholm & Michael McPherson & Enyinna Chuta, 1994. "Small Enterprise Employment Growth in Rural Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1177-1182.
    8. Rogerson, C.M., 1999. "THE SUPPORT NEEDS OF RURAL SMMEs: THE CASE OF PHUTHADITJHABA, FREE STATE PROVINCE," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 38(2).
    9. Adrian Wynne & Michael Lyne, 2003. "An empirical analysis of factors affecting the growth of small-scale poultry enterprises in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 20(5), pages 563-578.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juan-Pierrà Bruwer & Judith Smith, 2018. "The Role of Basic Business Skills Development and Their Influence on South African Small, Medium and Micro Enterprise Sustainability," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 48-62.
    2. Darroch, Mark A.G., 2010. "South African Farmers’ Perceptions of the Benefits and Costs of Complying with EUREPGAP to Export Fresh Citrus to the European Union (EU)," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96437, African Association of Agricultural Economists (AAAE).
    3. Bruce MASAMA & Juan-Pierré BRUWER, 2018. "Revisiting the Economic Factors which Influence Fast Food South African Small, Medium and Micro Enterprise Sustainability," Expert Journal of Business and Management, Sprint Investify, vol. 6(1), pages 19-28.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Darroch, Mark A.G. & Clover, T.A., 2005. "The effects of entrepreneurial quality on the success of small, medium and micro agri-businesses in KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-23, September.
    2. Ortmann, Gerald F., 2000. "Promoting competitiveness in South African agriculture and agribusiness: The role of institutions," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-33, March.
    3. Wynne, Adrian T. & Lyne, Michael C., 2003. "Rural Economic Growth Linkages and Small Scale Poultry Production: A Survey of Poultry Producers in KwaZulu-Natal," 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa 19095, Agricultural Economics Association of South Africa (AEASA).
    4. Mahabile, M. & Lyne, Michael C. & Panin, A., 2005. "An empirical analysis of factors affecting the productivity of livestock in southern Botswana," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), pages 1-19, March.
    5. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 163-193, October.
    6. Edamisan Stephen Ikuemonisan & Taiwo Ejiola Mafimisebi & Igbekele Amos Ajibefun & Adeyose Emmanuel Akinbola & Olanrewaju Peter Oladoyin, 2022. "Analysis of Youth’s Willingness to Exploit Agribusiness Opportunities in Nigeria with Entrepreneurship as a Moderating Variable," Businesses, MDPI, vol. 2(2), pages 1-20, April.
    7. Lovo, Stefania, 2008. "Market Imperfections And Class Structure: The Case Of South Africa," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6675, European Association of Agricultural Economists.
    8. William Easterly & Ross Levine, 2002. "It´s Not Factor Accumulation: Stylized Facts and Growth Models," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 3, pages 061-114, Central Bank of Chile.
    9. Fernando Peris Bonet & Carlos Rueda Armengot & Miguel Ángel Galindo Martín, 2011. "Entrepreneurial success and human resources," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(1), pages 68-80, March.
    10. Francisco Liñán & Yi-Wen Chen, 2006. "Testing the Entrepreneurial Intention Model on a Two-Country Sample," Working Papers 0607, Departament Empresa, Universitat Autònoma de Barcelona, revised Jul 2006.
    11. Julie Hermans & Marcus Dejardin & Johanna Vanderstraeten & Dendi Ramdani & Erik Stam & Arjen van Witteloostuijn, 2012. "Ambitious entrepreneurship: antecedents and consequences," Working Papers 1210, University of Namur, Department of Economics.
    12. Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour – Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
    13. Elwyn Davies & Andrew Kerr, 2015. "Firm Survival and Change in Ghana, 2003-2013," CSAE Working Paper Series 2015-06, Centre for the Study of African Economies, University of Oxford.
    14. María José Rodríguez-Gutiérrez & Isidoro Romero & Zhikun Yu, 2020. "Guanxi and risk-taking propensity in Chinese immigrants’ businesses," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 305-325, March.
    15. Mohd Yasir Arafat & Imran Saleem & Amit Kumar Dwivedi & Adil Khan, 2020. "Determinants of agricultural entrepreneurship: a GEM data based study," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 345-370, March.
    16. Olivier Giacomin & Frank Janssen & Jean-Luc Guyot & Olivier Lohest, 2023. "Opportunity and/or Necessity Entrepreneurship? The Impact of the Socio-Economic Characteristics of Entrepreneurs," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    17. Stefania Lovo, 2012. "Market imperfections, liquidity, and farm household labor allocation: the case of rural South Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 417-428, July.
    18. Juan A. Martínez-Román & Isidoro Romero, 2017. "Determinants of innovativeness in SMEs: disentangling core innovation and technology adoption capabilities," Review of Managerial Science, Springer, vol. 11(3), pages 543-569, July.
    19. Dias, Cláudia & Franco, Mário, 2018. "Cooperation in tradition or tradition in cooperation? Networks of agricultural entrepreneurs," Land Use Policy, Elsevier, vol. 71(C), pages 36-48.
    20. Richard Black & Adriana Castaldo, 2009. "Return Migration And Entrepreneurship In Ghana And Côte D’Ivoire: The Role Of Capital Transfers," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 44-58, February.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:31694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.