Explore publications.

This study aims to provide compelling evidence demonstrating the effectiveness of local economic development (LED) in advancing economic and social development. The research undertook a systematic review of existing literature to assess whether LED strategies have effectively addressed the racially and gender-based socio-economic disparities between affluent and impoverished communities. The analysis revealed that municipal LED efforts have predominantly concentrated on community economic development projects, many of which have turned out to be economically unfeasible with minimal enduring impact on poverty alleviation. Moreover, the collaboration among government entities, local businesses, and the voluntary sector was frequently found to be weak or altogether absent. For significant socio-economic transformation in South Africa, LED policies must emphasize not only an increase in the number of job opportunities but also a diversification of economic activities. Local governments are called upon to play a proactive role in this transformative process. Furthermore, the LED strategy should be comprehensive and not reliant on a limited number of projects. This study This research is characterised by originality and great scientific value, as it underscores the necessity for the national government to take on a leadership position and devise LED guidelines that empower local authorities with the capacity to effectively foster LED activities.

South Africa is a developing country characterised by a high rate of unemployment. Unemployment is more prevalent among women and the youth, as they comprise a larger population in South Africa. This has created a higher demand for public services, burdening the government’s ability to provide services. Promotion and funding of community entrepreneurship can ensure that local communities are given the required skills and support to start their businesses to support their families while creating an impact in society. South Africa has many informal businesses in which community members operate, and street vendors are the noted portion that constitutes this informal trading in South Africa. This paper seeks to analyse how the government can implement local economic development (LED) initiatives in a way that promotes and encourages community entrepreneurship. The local government is a sphere closer to the people and is entrusted with implementing LED initiatives in South Africa. The local government has a vital role to play, but it has not done enough to enhance community entrepreneurship in local communities. Based on this premise, this paper will also analyse the key challenges the local government faces in ensuring that community entrepreneurship is encouraged and promoted. This paper is timely. Therefore, the country is currently faced with a higher unemployment rate, which is mostly prevalent among women and the youth, and effective LED initiatives can promote community entrepreneurship in local communities for the betterment of citizens’ lives.

Small and Medium Enterprises (SMEs) are essential catalysts for economic expansion and employment generation in local communities. Nonetheless, their elevated failure rate presents a considerable risk to economic sustainability. This study examines the fundamental difficulties leading to SME failures in the Sol Plaatje Local Municipality (SPLM) in the Northern Cape, South Africa, and analyses viable ways to improve their sustainability and growth. Data were gathered using a qualitative research approach through semi-structured interviews with 15 SME owners recruited via non-probability sampling. Thematic study, utilising ATLAS.ti software, identified multiple persistent challenges encountered by SMEs in the region. These encompass restricted access to technology, deficient infrastructure, financial limitations, poor training, elevated unemployment, constrained market access, and safety issues. Factors like delayed payments, political meddling, unfair competition, the repercussions of the Covid-19 outbreak, and insufficient mentorship further impede SME development. The study assessed current government support channels, highlighting their benefits and deficiencies. The findings highlight the necessity for focused policy interventions, capacity-building measures, and enhanced support structures to bolster the resilience and long-term sustainability of SMEs in SPLM.

Productive asset creation has been proposed as a potential solution for local economic development. The research study explores the concept of productive asset creation and its impact on local economies. The main objective of the study was to establish the impact of Productive Assets Creation (PAC) in stimulating Local Economic Development in Botswana The research study discusses value creation and value appropriation, highlighting the role of innovation and competition in capturing societal value through productive assets. Local Economic Development provides a multilevel perspective on value creation and capture, emphasizing the role of favourable economic environments within communities. The research study referred to various kinds of literature discussing the importance of productive asset creation as a solution to Local Economic Development. The literature that was used also argued that policy consideration should be made on productive assets to promote business development and improve overall returns to communities. The research utilised qualitative methods of data collection and analysis. Interviews and document analysis were used to interact with relevant participants and gathering relevant data. The findings and recommendations derived from this paper aids in developing productive assets that feeds into local economic development initiatives. By considering the theories and perspectives discussed in the selected references, future researchers, policymakers and practitioners may gain insights into the factors and strategies that contribute to successful economic development at the local level.

This paper aims to examine the challenges faced by uMsunduzi local municipality in supporting SMMEs and identify programmes offered by the municipality to stimulate the SMME sector. The study adopted a qualitative research method to collect data. A sample of 7 municipal workers was selected using the purposive sampling technique. Semi-structured interviews were used to collect data, and thematic content analysis was used to analyse the data. The results revealed that the business support programmes that the municipality offers to support SMMEs are insufficient to meet the demands of these enterprises in the region. The results further revealed that the lack of suitable business infrastructure, mainly due to deteriorating buildings in the city centre serving as the main business hub, poses a significant challenge for the municipality. Lastly, the insufficient allocation of resources and the lack of communication to raise awareness about business support programmes aimed at SMMEs also emerged as one of the challenges for the municipality. The study recommended that better policy reformations and better resource allocation be made by the municipality. Improvement in communication efforts to raise awareness of readily available business support programmes offered to SMMEs was also recommended. Lastly, municipal engagement with the upper government spheres was also recommended so that the municipality could obtain funding to refurbish the decaying infrastructure with the potential to house SMMEs for business use and improve business incubation and training centres that support SMMEs.

From the 1930s, the South African minibus-taxi industry has been playing a fundamental role in supporting the growth and development of minibus-taxi entrepreneurs. The minibus-taxi industry in South Africa is often misunderstood due to its informal nature. However, it is worth noting that the South African minibus-taxi industry has created economic opportunities for taxi entrepreneurs, and today it has an annual turnover of R38-billion to R50-billion. This study investigated the role of the South African minibus-taxi industry in promoting the development of taxi entrepreneurship in Mankweng taxi ranks, within the Limpopo Province and its limited within this area. The mixed-method research approach was used with a stratified-random sampling using a semi-structured questionnaire administered to 110 taxi entrepreneurs. In addition, the study conducted group focus interviews purposively with 12 minibus-taxi bosses. Qualitative data was analysed using descriptive analysis and quantitative data was analysed using the Statistical Package for Social Science (SPSS) software and then transported to the Microsoft Excel for further analysis where necessary. The findings reveals poor business planning; weak support from both the Mankweng Taxi Association and government; and high fuel prices affects the day-to-day business activities and causing majority of minibus-taxi entrepreneurs running their businesses at loss without realisation. The study recommend an urgency for the Mankweng minibus-taxi group and their key stakeholders to design an entrepreneurship model suitable for the industry’s development to boost the local economy. This study sought to demonstrate the importance of unlocking the full potential of minibus-taxi entrepreneurship through sufficient support from both the government and minibus-taxi associations to address structural challenges, limited access to resources and finance, and regulatory complexities to lessen the burden of running the minibus-taxi business. The study challenges policy-makers intentionally to design programs aimed at incorporating the minibus-taxi business into boosting the overall economy in a formal manner.

Since the start of the democratic era in 1994, South Africa has prioritised small, medium, and micro enterprises for economic growth and social development, offering significant opportunities to the unemployed population. However, the extent to which SMMEs contribute to the socio-economic progress of a particular economy is contingent upon various factors, including the specific country or sector in which they operate. In South Africa, the majority of SMMEs operate within the services sector, with 30% in wholesale and retail trade, 23% in community and social services, and 14% in financial services. Grounded on the  Resource-Based View theory, this study aims to investigate how SMMEs contribute to the social and economic development of South Africa. Furthermore, their contributions align with four of the Sustainable Development Goals of the United Nations, making this research both relevant and timely. This systematic literature review included nineteen research articles using bibliometric indicators from the Google Scholar database. As a result, the literature review revealed four key SMMEs’ contributions to South African socio-economic development namely employment creation and income generation, economic growth, development and specialisation, contribution to GDP, and poverty alleviation. To further enhance this contribution, it is recommended that governments provide support in the form of training programs, access to finance, and mentorship opportunities to help SMMEs grow and create more job opportunities..

The study focused on the insights of municipal officials and community members concerning the significance of public participation in promoting local economic development at Jozini Local Municipality. The study aimed to determine the challenges hindering the function of public participation in the uplifting of the local community and how these challenges influence community development. This study adopted a mixed-method (qualitative and quantitative) research method to collect and analyze the data. Both methods ensured various data collection techniques, including questionnaires and interviews. Questionnaires were presented to community members because several people could be reached in a brief time as numerous community members were targeted. Interviews also served to collect data from the municipality staff, since they were not that many. The study identified the challenges hindering public participation in community development; it also revealed politics as the bearer of public participation between the municipality and the community. The findings also revealed municipal officials struggle with financial resources during their course of work. Corruption and maladministration among municipalities were identified, hampering community development through public participation. The study suggests that the municipality should improve communication between the officials and the residents, enabling them to raise their opinions. The study also suggests providing adequate funding to be effective in development that will satisfy the community.

Small Micro, Medium Enterprises (SMMEs) are the most strategic mechanisms rural municipalities in South Africa advocate for to generate employment and increase household income. The Citizen Empowerment Theory was utilised to understand how Local Economic Development (LED) can be re-engineered by SMMEs post-COVID-19 in South African rural municipalities. To arrive at a meaningful conclusion, the paper adopted a document analysis which draws from pre-COVID-19 narratives on SMMEs and examines government documents and peer-reviewed articles that inform SMME development post-COVID-19 in South Africa. Revelations emanating from the document analysis indicate the severe damage COVID-19 did to both formal and informal SMMEs. To grow and reposition themselves in the dynamic entrepreneurship landscape post-COVID-19, SMMEs in South Africa require strategic business approaches that enable them to draw funding from external sources instead of relying on government funding which in most cases has red tape and other bureaucratic complexities tied to it. Further analysis of documents indicates the need for rural SMMEs to embrace digital entrepreneurship where product marketing is done online including most of the business transactions. By doing this, evidence from the document review affirms that SMMEs become competitive by tapping into external markets in the process linking themselves to stakeholders who may have an impact on the growth and sustainability of SMMEs towards employment regeneration and improved LED in rural municipalities. To have an integrative LED that promotes citizen participation post-COVID-19, the paper recommends rural municipalities foster close ties with local SMMEs which is critical for enhancing their networking strategies while SMMEs diversify their portfolios to generate income as well as withstanding shocks that may be triggered by unpredictable external environments.

This study focuses on understanding the reasons why the support programmes initiated to enhance the success of black-owned small and medium-sized enterprises (SMEs) have not shown the successes that were envisaged. Some government agencies are in charge of these programmes. The sampling frame consisted of previously assisted SMEs by the support agencies. SMEs were represented by high-ranking officials as study participants. There were signs that the support programmes were not effective in improving the SMEs. The responses indicated that the programmes’ weakness can be attributed to the aid not being customized to the needs of the SMEs. There were training initiatives in some instances. According to the responses, the training was not based on the training needs of the SMEs. The SME practitioners, therefore, did not improve on their weaknesses. Finances that were given out as aid, according to the respondents, were dictated by the donor and did not allow flexibility according to the purchasing needs of the SMEs. Apparently, aid was in one form for all the SMEs. These supports ended up not helping to improve the SME. The paper recommended the customization of the aid to the needs of the SME.

The LED initiatives were planned to magnify economic development, share the alleviation objectives, and incorporate previously excluded groups in social and economic life. Section 152 of the Constitution of the Republic of South Africa (1996) outlines the primary objectives of the local government (municipalities); Subsection (1) stipulates that (a) municipalities must provide a democratic and accountable government for local communities; (b) ensure to provide services to local communities sustainably; (c) promote social and economic development. This paper focuses on youth community members’ perceptions of LED in the Mpembeni and Bazaneni local areas. The sample also included municipal officials within the Big 5 Hlabisa Local Municipality. The paper's primary aim is to analyse initiatives toward poverty mitigation within the Big 5 Hlabisa Local Municipality. Qualitative methods were employed to collect and analyse data obtained from the youth community members and municipal officials with the LED department. Qualitative data were collected from the youth community members through questionnaires and from the municipality staff through interviews. The analysis of qualitative data was conducted through thematic analysis. This study and the identified problem were developed to analyse the possibility of LED initiatives to mitigate the poverty level and unemployment rate. For over two decades of democracy, “South Africa is still battling with the issues of poverty, inequality, unemployment, and hunger” (Stats SA, 2017). The study findings confirm South Africa’s remaining battle with the elevated level of poverty in rural areas and the high youth unemployment rate. The recommendations and innovative ideas may assist the municipality in facilitating the LED initiatives effectively through local community development.

Local Economic Development strategies were formulated in response to the stipulations made by the national government of South Africa. The national mandate placed the responsibility on the local sphere of government to promote economic progression from a grassroots level and to contribute to developmental activities within the state. The National Framework LED has been created as a basis for the effective practice of LED in terms of implementation. This paper focused mainly on evaluating the effectiveness of Local Economic Development strategies in uMhlathuze Local Municipality within Empangeni town. This paper and its problem were developed by the researcher due to the growing unemployment rate in South Africa which mostly affects young people, more especially at the municipal level. The researcher was convinced to evaluate how the economic development strategies or initiatives addressing the issue of unemployment and assisting economic development within the uMhlathuze Local Municipality, intending to come up with mechanisms that may be put at hand to ensure the effectiveness of these strategies provided to address economic issues with the municipality. This paper employed qualitative methods to collect and analyze data. Qualitative data were collected from community members and staff of the municipality within the Department of Economic Development through the use of questionnaires. The analysis of qualitative data was done through thematic analysis. The findings of the research revealed that there is a communication breakdown between the community and the municipality to enable the community to use the opportunities for economic development. This paper recommends that the municipality needs to develop/advance communication methods to ensure that the community is informed and aware of the development opportunities that are provided by the community.

The lack of economic access is one of the main challenges facing small and medium enterprises (SMEs). It contributes to the elevated levels of unemployment and slows the resolution of high inequality and poverty in South Africa. Economic access is the ability of historically disadvantaged individuals and entities to participate in the economy. This study aimed to explore how institutional development can support economic access for SMEs. The study explored how setting up new or improving existing socio-economic structures or legal entities could support economic access for SMEs. The support received by SMEs in South Africa from three institutions, the Independent Power Producer Office (IPPO), the Infrastructure Delivery Division (IDD) and the Development Laboratories (DLabs), set up by the Development Bank of Southern Africa (DBSA) was assessed. Quantitative data from the DBSA and IPPO, as well as qualitative views from informants, were used to assess the economic access of SMEs. The study shows that the IPPO, IDD and DLabs added value by achieving the objectives for which they were created. Furthermore, the results show that institutional development supports economic access for SMEs, and that this support is scalable. The study showed that institutional development could be a tool to support SMEs to participate in the economy. This study contributes to the body of knowledge on ways to support SMEs to grow and contribute to reducing unemployment, inequality and poverty.

The study looked at the role and contribution of entrepreneurship industry to foster social and economic development through small, micro, and medium-sized businesses in South Africa. The conceptual research looked at the influence of small, micro, and medium-sized businesses (SMMEs) on South African development. The study's objective was to evaluate how small, medium-sized businesses (SMMEs) are now driving economic growth and solving social issues in a setting where big businesses and governments appear to be doing very little. As a result, the study examines how SMMEs might help the nation solve persistent societal evils including poverty, inequality, and social isolation. A desktop literature review research design was adopted to collect data on the role of entrepreneurship in South Africa, policies and practices of big business and government that exacerbate social issues in communities and impede socioeconomic development, as well as the specific roles that SMMEs play in achieving socioeconomic development goals. Findings from research indicate that, among other development outcomes, SMMEs are at the vanguard of creating jobs and fostering social and political justice in the nation. Future empirical studies that account for and evaluate the importance of SMME contributions to the construction of economic, social, and political justice in the nation are advised because this work lacks the empirical support necessary to substantiate its conclusions and observations.  

This paper is an assessment of 21 years of developmental local government as advocated through the 1998 White Paper on local government. In the 21st century, local governments have developed into hubs for developmental objectives. This suggests that they are now expected to go beyond the fundamentals of providing services. For instance, the agenda of local governments has automatically adopted South Africa's idea of a developmental state that primarily prioritises economic development and the need to consider the most suitable intervention scales. With the implementation of the National Development Plan (NDP) in 2012, South African authorities formalised their intention to pursue a developing state. The authorities' conviction that the developmental state approach is a factor for development is evident from reading the NDP. Because of the vertical connections between regional, sub-regional and local processes of change, strategies must be well-suited to one another, different interventions may be most effective at various spatial scales, and strategy and implementation may also be most effective at particular scales. This study used a multi-site case study as the sole type of research methodology. The study took an exploratory approach, because it constituted contextual research, allowing the researcher to investigate and record research phenomena in line with diverse participant interpretations. The study discovered that despite the ideals outlined in the 1998 White Paper, National Development Plan, and District Development Model, emphasising the influence of the local sphere as closer to citizens, and thus more responsible for their welfare and development, factors such as public participation, a lack of skills, and sub-par infrastructure delivery have negatively impacted developmental local government outcomes. In the end, local government is unable to fulfill its responsibility for development. The paper contends that local government's performance, assessed against its constitutional purposes, hinders the realisation of a progressive state in South Africa against a backdrop of local government incapacity.

This study intended to investigate how the Lephalale Local Municipality's small and medium companies (SMEs) are hampered by a lack of government support. This study also aims to demonstrate how SMEs face difficulties in surviving as a result of problems in the business environment. Consequently, the government of South Africa has programs to assist SMEs. The growth of SMEs is important for advancing innovation, wealth distribution, and employment. The majority of SMEs launch and maintain their businesses with their own money. By using a qualitative research approach and semi-structured in-person, phone, and email interviews to collect data, the goals of this study were met. There were 318 registered SMEs in the area. Using purposive sampling methods, data from operational enterprises with a lifespan of 0 to 5 years were gathered. Atlas TI 8 was used to evaluate the data. The primary conclusions of this study show that (i) small and medium-sized enterprises (SMEs) find it difficult to maintain their operations because they lack access to capital and business equipment. This fails if SMEs are not given the proper support. Because they lack the resources to compete with big companies, SMEs find it challenging. (ii) Small and medium-sized enterprises (SMEs) should think about enrolling in bookkeeping training and sending their staff to business training in order to network for the survival of the company. In order to assist SMEs in fulfilling the requirements for maintaining their enterprises, this study advises the government to examine present standards. With the right assistance, SMEs can create business plans and maintain operations, which will result in the creation of jobs, particularly for local communities. The government ought to think about mentoring and overseeing sponsored SMEs.

The purpose of the study was to investigate the roles of entrepreneurship and small and medium-sized businesses in fostering local economic development. Based on this assumption, this conceptual study attempts to investigate the function of small and medium-sized firms in LED. According to studies, the entrepreneurial spirit of the SME owner is a significant determinant of a SME's ability to surmount survival challenges and achieve sustainable growth. The article also attempts to locate and establish the purpose of the study by identifying the barriers that small and medium-sized businesses encounter in their efforts to contribute to economic growth and offering potential solutions to these barriers. Due to inadequate infrastructure development and a lack of the fundamental capabilities to control and influence local economic growth, the study concludes that exceptional measures are necessary to overcome obstacles such as finance and service. The purpose of this study is to answer the research question of whether the emphasis should be placed on creating competent entrepreneurs, particularly among previously disadvantaged individuals, if the government's goal to leverage the SMME sector is to have any significant success. It was noted that the LED is essential but has not been utilized frequently. Using a qualitative thematic analysis approach, the study accessed data on both private and public spaces primarily through secondary sources. The qualitative investigation accessed the foundational literature via a sophisticated search. According to the study, small and medium-sized enterprises play a crucial role in the promotion of LED. The study concluded, among other things, that the local level of governance in South African municipalities is incapable of providing basic services and the necessary infrastructure.

This study will contribute towards the evaluation of the effects of the investment project "Supporting production businesses", in Shtime, as part of the local economic development strategy. For the study were used primary data (Interview) and secondary data (official document and relevant reports) based on identified indicators, as: 1)Type of support (value of money, number of donation, surface offered on m2, location, number of training offered); 2) number of businesses, number new job created, number of taxpayers, number of new investment and 3) number of new products, new market, new technology, increase in turnover / profit, or changes in business organization. As a result of the support provided, these enterprises continue to develop their business successfully. The project has had a positive impact on local economic development in the municipality of Shtime, contributing to employment growth, increasing the number of taxpayers as well as improving the business structure in favour of processing enterprises. Furthermore, as a result of this project, these enterprises have recorded an increase in turnover and profit, as well as expanding their market with new products. This research shows the impact of the public investment in local economic development in particular with the small production companies.