The Role of Small Scale Survivalist Enterprises in Generation of Household Incomes in Vhembe District of Limpopo Province, South Africa pp. 193-208
Authors: (Lucy Lynn Maliwichi, PhD, Stephen Oni, Linda Sifumba, University of Venda, Department of Family Ecology and Consumer Science, Thohoyandou, South Africa, and others)
Abstract: Most families in developing countries are resorting to small-scale businesses as a response to economic hardships resulting from inflation and economic changes. The familiesí role in small scale businesses is carried out under conditions of hardship that include limited economic resources, low levels of technology, lack of adequate knowledge and lack of appropriate skills. Self-employment in South Africa using a variety of skills has become an alternative source of employment for many low income households. The main purpose of this study was to assess the ability of small scale income generating activities to create employment and generate household income. A total of 85 households were purposely selected using the snow-balling methodology. A set of both closed and open-ended questionnaires was used to collect data on household income generating activities from heads of households. Results for household income generating activities showed no evidence of employment creation except that the activities were used to generate income and reduce household food insecurity. According to the results a mean income of R873.15 per month was generated by these activities. Although the income was not adequate to support a mean number of 8 dependants in a household, the income was higher than the pension grant of R700 which rural people depend on. The main constraints facing household income generating activities were: lack of working capital, lack of management skills, and marketing related problems. Financial support and skills training were identified as necessary strategies to overcome lack of working capital, lack of management skills and marketing constraints.